Eternal’s Q2 Profit Surge
Eternal continued to fire on all cylinders in Q2 FY27. Besides improving margins and the profit surge, the quarter also saw Blinkit accelerate its dark store network, Zomato regain its pace and Hyperpure turn profitable. But underlying all this was Eternal’s new AI bet.
Before we move ahead, here is a quick look at Eternal’s Q2 FY27 numbers:
- Net Profit zoomed 92% YoY to ₹125 Cr
- Operating Revenue climbed 78% YoY to ₹24,138 Cr
- Adjusted EBITDA more than tripled YoY to ₹666 Cr
- Total expenses also rose 75% YoY to ₹24,166 Cr
Blinkit Powers Growth: The quick commerce vertical remained Eternal’s strongest growth engine, supported by rapid store additions, rising order volumes and improving economics across both mature and newer markets. In total, Blinkit added 308 net new stores in Q2 FY27, taking its network to 2,751. Betting on scale, the management now expects Blinkit to cross 3,500 stores by March 2027 and reach around 5,000 stores by March 2028.
Zomato Regains Pace: The food delivery business maintained steady growth, driven by an expanding user base, stabilising demand and higher ordering frequency. Strong execution across Tier II+ markets also brought healthy top line and profits, reassuring investors that the business remains a resilient cash generator to fund broader group initiatives.
The District Question: Eternal’s going-out vertical also narrowed its losses in Q2 FY27, with the company claiming that District is on trajectory towards planned breakeven by June 2027. Meanwhile, B2B vertical Hyperpure achieved a major milestone by turning EBITDA positive in Q2, driven by two-hour deliveries and rising adoption of organised procurement offerings.
The AI Bet: Expanding beyond foodtech, Eternal also unveiled Dark, a privacy-focused AI platform to target users that seek data confidentiality and greater control over their research. Built on fine-tuned open-weight models, the new product is scheduled for global rollout in 2026 itself. As the foodtech giant further expands its AI ambitions, here is how Eternal fared on the financial front in Q2 FY27…
From The Editor’s Desk
Jio Platforms IPO Day 1
- The digital juggernaut’s public issue was subscribed 3.15X on the first day of bidding, with investors bidding for 62.3 Cr shares against 19.75 Cr shares on offer.
- QIBs led the charts and subscribed their quota 9.42X. NIIs and retail investors followed suit and subscribed their portions 1.68X and 0.72X, respectively. The employee portion was also subscribed 1.36X.
- The IPO of the Reliance Industries’ digital services arm consists solely a fresh issue of up to 27 Cr equity shares. At the upper end of its ₹1,065 to ₹1,119 price band, the ₹30,213 Cr IPO will peg the company at around around ₹10.3 Lakh Cr.
Blacksmith Bags $66 Mn
- The AI code testing startup has raised nearly ₹663 Cr in a round led by Sequoia Capital to bolster its compute infrastructure and expand its engineering team. With this, the startup has managed to double its valuation to $1 Bn within a span of two months.
- Founded in 2024, Blacksmith operates an AI-powered cloud platform for building and testing software code. It claims to serve more than 10,000 clients and manages 10 MW of compute footprint across data centers in the United States and Europe.
- The fundraise comes amid growing investor interest in the enterprise AI space, which is being driven by high RoI, rapid deployment of AI tools by enterprises and regulatory support. Overall, Indian AI startups raised $438 Mn in Q3 2026, up 265% YoY.
eMudhra’s Security Key Flaw
- Eight private keys used in the digital trust company’s infrastructure were so weak that researchers could reconstruct them from publicly available certificates. As a result, Google, Mozilla, Apple and Microsoft have moved to block the impacted certificates.
- The impacted keys were not stolen from eMudhra’s systems. They were generated using extremely small, guessable values during a key-generation ceremony in April 2025, after a flaw created a new weak set of keys alongside the intended strong ones.
- eMudhra says its root CA private keys and Indian DSC and eSign infrastructure were not affected. However, the company’s stock hit a lower circuit, reflecting investor concern over the operational and reputational consequences for the listed company.
The Mygate-AdOnMo Merger
- The community management startup and the adtech startup are all set to merge via a share swap deal. This comes after foodtech giant Eternal’s board approved a deal to transfer its entire shareholding in the digital advertising platform to Mygate.
- Post the merger, which is still subject to statutory approvals, Eternal will own around 4.4% in the merged entity on a fully diluted basis. Its stake in the consolidated entity is currently valued at around ₹156 Cr.
- The combined entity will bring together Mygate’s community platform and AdOnMo’s network of more than 55,000 digital screens across 27 cities. Overall, Mygate claims to have closed FY26 with a top line of ₹232 Cr with an EBITDA margin of 10-12%.
Aye Finance’s Q2 Show
- The listed NBFC’s net profit zoomed 151% YoY to ₹86.7 Cr in Q2 FY27. The surge in bottom line came on the back of certain one-time gains, a tighter leash on expenses and operating revenue growing a healthy 18% YoY to ₹514.4 Cr in the quarter.
- On the operational front, Aye Finance’s AUM rose 26% YoY to ₹7,597 Cr in Q2, while loan disbursements jumped 10% YoY to ₹1,403 Cr. Its active customer base expanded 18% YoY to 6.94 Lakh, with the lender adding 49,150 new borrowers during the quarter.
- The expansion was accompanied by an improvement in asset quality. Aye Finance’s gross non-performing assets ratio declined to 4.2% from 4.5% in the preceding June quarter. Meanwhile, credit costs fell to 3.8% from 5% a year earlier.
Inc42 Markets
Inc42 Startup Spotlight
Next Quest: Satellites On Bio-Fuel
Launching satellites into orbit remains expensive and technically complex. This has limited access for startups, researchers and defence users. Plugging this gap is Space Philic, which is developing reusable rockets to make space access more affordable and sustainable.
Aiming For The Skies: Founded in 2022, Space Philic is building RUPAK, a 28-metre reusable launch vehicle designed to carry payloads of up to 250 kg to low-Earth orbit. The rocket uses a carbon-fibre booster and retractable landing legs, enabling it to return, land and fly again.
The Clean Propulsion: RUPAK will be powered by Shakti, a 32 kN bi-propellant, electric-fed rocket engine. Space Philic claims that its selective laser melting-based manufacturing reduces part count and weight, while the electric-pump design removes the need for turbopumps. The startup has already tested a Shakti engine prototype using GP-300, an ethanol-based propellant, and is now working towards scaling its launch system.
Beyond Satellites: The startup is also developing payload platforms for scientific experiments, biological research and defence missions. Its defence platform is designed for rapid-response launches, with a target of deploying defence payloads within 24 hours.
With the Indian satellite launch services market projected to become a $1.58 Bn opportunity by 2033, can Space Philic make space rockets cleaner, greener and reusable?
Infographic Of The Day
CRED founder and WhatsApp global CEO Kunal Shah has so far backed 15 unicorns and invested in over 310 startups. Here is a quick look at his portfolio, the sectors he backs, and the startups he saw potential in early on…
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