Eternal Reports Strong Revenue Growth In Q2 While Net Profit Misses Market Estimates

Eternal reported its financial results for the September quarter of fiscal year 2027, posting a sharp rise in revenue alongside a net profit that fell below market expectations. Operating revenue surged 78 percent year-on-year to ₹24,138 crore. Net profit nearly doubled to ₹125 crore, but this missed analysts' estimates of ₹250 to ₹300 crore.

Blinkit Expansion

Quick-commerce arm Blinkit remained the company's biggest growth engine, contributing nearly 80 percent of consolidated revenue. Blinkit's revenue soared 94 percent year-on-year to ₹19,152 crore. Adjusted Ebitda reached ₹184 crore compared to a loss of ₹156 crore a year ago, with margins improving for the sixth consecutive quarter to 0.9 percent of net order value. Eternal has raised its store target to 3,500 by March 2027, up from 3,000 earlier, after adding 308 stores last quarter to reach a total footprint of 2,751.

Segment Performance

Food delivery business Zomato saw net order value grow 21.5 percent year-on-year to ₹11,445 crore, marking five straight quarters of growth acceleration. District revenue grew 61 percent year-on-year to ₹304 crore, while B2B business Hyperpure grew 13 percent to ₹1,154 crore. Alongside these earnings, Eternal announced plans to launch a privacy-focused AI assistant named dark.ai, which will use fine-tuned open-weight models on its own infrastructure.

Context

Companies in the quick-commerce sector often accept lower short-term margins and profit misses while investing heavily in store expansion to capture market share. High capital expenditure and depreciation from rapid warehouse and store rollouts frequently weigh on near-term net income even as top-line sales grow rapidly.