Eternal Limited delivered strong year-on-year growth in the second quarter of FY27, supported by its food delivery platform Zomato, quick-commerce business Blinkit and growing going-out and B2B supply operations. The company reported substantial revenue growth and higher adjusted EBITDA, although net profit remained below market expectations.

Revenue from operations increased 77.6% year-on-year to ₹24,138 crore in Q2 FY27, compared with ₹13,590 crore in the corresponding quarter last year. Revenue also increased from ₹20,211 crore in Q1 FY27, reflecting continued business expansion.

Investors should interpret this headline revenue growth carefully. Blinkit’s transition to an inventory-ownership model affects the way revenue is recognised. On a like-for-like basis, Eternal reported revenue growth of approximately 58%, providing additional context for the underlying business expansion.

Consolidated net profit rose 92.3% year-on-year to ₹125 crore, compared with ₹65 crore in Q2 FY26. Sequentially, profit increased from ₹92 crore in the previous quarter. Despite this growth, the result fell short of several market estimates.

Consolidated adjusted EBITDA climbed 197% year-on-year to ₹666 crore, compared with ₹224 crore approximately in the year-ago quarter, according to reported figures. The improvement indicates stronger operating earnings, although investment spending and the different economics of the company’s business segments continue to influence overall profitability.

Total expenses increased 75% year-on-year to approximately ₹24,166 crore. The scale of these expenses reflects the costs associated with fulfilling orders, expanding delivery infrastructure, employee expenses and supporting the company’s growing operations.

Food delivery remains a significant part of Eternal’s business. Its food delivery net order value, or NOV, increased 21.5% year-on-year to ₹11,445 crore, compared with ₹9,423 crore in Q2 FY26.

Adjusted revenue from food delivery grew 35.5% year-on-year to ₹3,879 crore. Monthly transacting customers increased to approximately 28 million, compared with 27.2 million in the preceding quarter.

Food delivery adjusted operating profit increased 25% year-on-year to ₹627 crore. However, the adjusted EBITDA margin declined sequentially to approximately 5.5% of NOV, reflecting the effect of competitive intensity and growth investments.

During the earnings call, management acknowledged that competition in food delivery had become more intense than in the preceding few quarters. The company has been investing more aggressively in customer acquisition and initiatives designed to increase order frequency.

Management reiterated its long-term expectation of food delivery growth above 20% annually. It also indicated that margins could remain broadly flat over the next one to two years as the company prioritises growth opportunities rather than maximising near-term profitability.

Blinkit was again a major growth driver. The quick-commerce business reported net order value of ₹20,940 crore, up 79.3% year-on-year from ₹11,679 crore.

Blinkit’s revenue increased 93.6% year-on-year to ₹19,152 crore. The rapid growth reflects rising customer demand, an expanding product assortment, higher order activity and the continued development of its store network.

Blinkit’s adjusted EBITDA reached ₹184 crore, compared with approximately ₹102 crore in the previous quarter. Its adjusted EBITDA margin improved to around 0.9% of NOV from 0.6% sequentially, indicating progress in operating efficiency as the business scales.

The company had 2,751 Blinkit stores at the end of September 2026. Management outlined an accelerated expansion strategy, targeting more than 3,500 stores by March 2027 and approximately 5,000 stores by March 2028.

A substantial portion of the planned additions is expected to come from smaller cities. Management expects the competitive environment to become more predictable and indicated that faster store expansion should not necessarily result in short-term margin deterioration.

Product assortment is another major priority. Blinkit plans to offer greater choice within existing categories through more brands, pack sizes and price points, while adding new categories to increase customer retention, purchase frequency and wallet share.

The going-out business also reported strong growth. Its net order value increased 58% year-on-year to ₹3,259 crore, compared with ₹2,063 crore in Q2 FY26.

Management indicated that going-out growth was running above 50% year-on-year, ahead of the pace embedded in its long-term plans. The company reiterated its FY30 targets of ₹28,000 crore in NOV and ₹1,400 crore in adjusted EBITDA for this business.

Hyperpure, Eternal’s B2B supply platform serving restaurants and food businesses, reported revenue growth of 12.8% year-on-year to ₹1,154 crore. Its adjusted EBITDA increased to approximately ₹10 crore, indicating improving operating performance in the business.

The company’s cash balance stood at approximately ₹16,475 crore at the end of the quarter, down from ₹18,288 crore in the preceding quarter. Management attributed the reduction partly to a seasonal increase in net working capital ahead of the festive period.

The cash position and earnings generated by its established businesses are important because Eternal continues to invest in expanding quick commerce and strengthening customer engagement across its platforms. Investors will need to monitor whether the company can maintain growth while preserving financial flexibility.

Management also discussed Dark.ai, an early-stage, privacy-focused artificial intelligence initiative. The company sees potential in the project, with a planned global launch by the end of 2026. However, it remains an experimental opportunity and should not yet be treated as a material contributor to current earnings.

Eternal also announced changes involving its going-out business and its investment in Adonmo, including plans to consolidate going-out operations under a single subsidiary and restructure its Adonmo investment through a share swap with Mygate. Investors should follow the company’s official disclosures for the final terms and implementation details.

Looking ahead, Eternal’s growth will depend on the expansion of Blinkit’s store network, customer acquisition, food delivery order growth, improved operating efficiency and the ability to manage competitive spending. The company is pursuing a strategy that prioritises long-term market opportunities while continuing to develop profitability.

The main opportunity is the continued growth of online food ordering and quick commerce in India. The main risks include aggressive competition, rising operating costs, the cash requirements of expansion, margin pressure and the possibility that revenue growth may not translate into proportionate profit growth.

Overall, Q2 FY27 was a strong quarter for Eternal in terms of reported revenue, adjusted EBITDA and net profit growth. However, the profit miss and ongoing investment requirements show why investors should look beyond headline growth and examine segment-level performance, cash generation and margins.

This video is for educational and informational purposes only. It is not investment advice or a recommendation to buy or sell any security. Investors should review official company disclosures and consider their own financial objectives and risk tolerance before making investment decisions.

Highlights in Short

• Q2 FY27 revenue from operations: ₹24,138 crore, up 77.6% YoY.
• Like-for-like revenue growth: approximately 58%.
• Consolidated net profit: ₹125 crore, up 92.3% YoY.
• Consolidated adjusted EBITDA: ₹666 crore, up 197% YoY.
• Food delivery NOV: ₹11,445 crore, up 21.5%.
• Food delivery adjusted revenue: ₹3,879 crore, up 35.5%.
• Food delivery adjusted operating profit: ₹627 crore, up 25%.
• Food delivery adjusted EBITDA margin: approximately 5.5% of NOV.
• Blinkit NOV: ₹20,940 crore, up 79.3%.
• Blinkit revenue: ₹19,152 crore, up 93.6%.
• Blinkit adjusted EBITDA: ₹184 crore; margin approximately 0.9% of NOV.
• Blinkit store count: 2,751 at September-end; target above 3,500 by March 2027.
• Going-out NOV: ₹3,259 crore, up 58%.
• Hyperpure revenue: ₹1,154 crore, up 12.8%.
• Cash balance: approximately ₹16,475 crore.
• Key management focus: customer growth, assortment expansion, faster Blinkit rollout and disciplined margins.
• Key risks: competition, elevated expenses, margin pressure and expansion-related cash requirements.