Eternal's revenue jumped 78% year-on-year to ₹24,138 crore in its September quarter (Q2FY27). However, its net profit of ₹125 crore fell short of expectations, which ranged from ₹250 crore to ₹300 crore. The company credited its growth mainly to its quick commerce segment, Blinkit, which made up nearly 80% of total revenue. Blinkit’s revenue rose 94% year-on-year to ₹19,152 crore, with like-for-like growth at 84%. Adjusted EBITDA was ₹184 crore, recovering from a loss of ₹156 crore a year earlier. However, margins remained low at 0.9% of net order value (NOV).
Key Details
Eternal announced a new privacy-focused AI assistant called ‘dark.ai’. This assistant will run on its own infrastructure and use end-to-end encryption. Analysts from Jefferies India pointed out that user adoption and privacy features will be key to the success of this project. The company has also raised its store target to 3,500 by March 2027, up from 3,000. This change comes after adding 308 stores last quarter, bringing the total to 2,751.
Background
After the Q2 results, brokerages gave mixed reviews. Some remained positive despite the EBITDA miss, highlighting strong revenue growth and potential in smaller cities. Eternal's management expressed optimism about store performance in these areas, noting that they are achieving order volumes similar to metro locations.
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The mixed earnings report may influence Eternal's stock performance. Investors will weigh the lower-than-expected net profit against strong revenue growth. This situation could create volatility in the quick commerce sector as market participants evaluate future growth prospects. Investors will also monitor the upcoming launch of ‘dark.ai’ and its effects on user engagement and revenue growth.
Based on reporting by: livemint.com, moneycontrol.com