Eternal, the parent of Zomato and Blinkit, reported a sharp rise in revenue and profitability in the September quarter, led by continued growth in quick commerce. However, consolidated net profit fell short of analyst estimates as the company’s expenses rose alongside its expanding operations.
Net profit increased 92.3% year-on-year to ₹125 crore in Q2 FY27, compared with ₹65 crore a year earlier. Revenue from operations surged 77.6% to ₹24,138 crore from ₹13,590 crore. Total expenses rose 74.9% to ₹24,166 crore.
EBITDA stood at ₹752 crore, compared with ₹239 crore in the year-ago quarter, while the EBITDA margin improved to 3.1% from 1.8%. The net profit, however, missed the reported average analyst estimate of ₹271 crore, with higher delivery, employee and depreciation costs weighing on earnings.
Blinkit continues to improve profitability
Blinkit remained a key growth driver, with net order value (NOV) rising 79.3% year-on-year to ₹20,940 crore. The quick-commerce platform added 308 stores during the quarter, taking its total network to 2,751.
Its adjusted EBITDA margin improved for the sixth consecutive quarter to 0.9% of NOV. Adjusted EBITDA stood at ₹184 crore, compared with a loss of ₹156 crore in the year-ago period and a profit of ₹102 crore in the June quarter.
The improvement comes as Blinkit expands its store network to capture growing demand for quick deliveries. The pace of expansion, however, also adds to the company’s operating costs as it invests in infrastructure and delivery capacity.
Zomato food delivery maintains growth momentum
Eternal’s food delivery business also recorded steady growth. NOV rose 21.5% year-on-year to ₹11,445 crore, with the company saying growth acceleration had continued for five consecutive quarters.
Adjusted EBITDA increased 25% to ₹627 crore, although the margin edged down to 5.5% of NOV. Food delivery remains an important contributor to the group’s profitability as Blinkit continues to scale.
District losses persist
The going-out business, District, reported 58% growth in NOV to ₹3,259 crore. Its adjusted EBITDA margin improved to minus 2% from minus 3.1% a year earlier, but the adjusted EBITDA loss remained broadly flat sequentially at ₹64 crore.
Hyperpure, Eternal’s business-to-business supplies arm, also showed an improvement. Revenue grew 22.7% on a like-for-like basis to ₹1,154 crore, while its adjusted EBITDA margin improved to 0.9% from minus 0.5% a year earlier, resulting in a ₹10-crore profit.
Eternal shares closed 2.45% lower at ₹312.35 apiece on the NSE on Wednesday, ahead of the company’s Q2 results announcement. The stock has declined nearly 8% over the past year, outperforming the Nifty 50, which has fallen around 12% during the same period.