News

Eternal Q2 Results: The operator of food delivery platform Zomato and its quick-commerce arm Blinkit, Eternal, on Thursday, October 16, reported a sharp a 183 per cent year-on-year jump in consolidated revenue to Rs 13,590 crore for the quarter ended September 30, beating analysts' expectations. However, its net profit declined 63 per cent to Rs 65 crore, much worse than what the Street had anticipated.

Sequentially, revenue nearly doubled from Rs 7,167 crore in Q1 FY26, while profit after tax (PAT) rose from Rs 25 crore.

After the earnings announcement, Eternal shares closed 1.7 per cent lower at Rs 348.4 apiece on the BSE.

Eternal’s Q2 FY26 results delivered a mixed performance compared with Zee Business estimates. Revenue was expected to be Rs 8,584 crore, EBITDA Rs 237 crore, PAT Rs 126 crore, and margin 2.8 per cent.

The mounting costs of advertising, sales promotion, and delivery hurt the margins. The decline in profitability was also indicative of the consequence of the latest takeovers and the swift extension of Blinkit's dark store network.

Total expenses for the Gurugram-based company rose 188 per cent YoY to Rs 13,813 crore. Advertising and sales promotion costs nearly doubled to Rs 806 crore, while delivery-related expenses rose marginally to Rs 2,213 crore.

Quick-commerce

Revenue from the quick-commerce business (Blinkit) jumped 756 per cent YoY to Rs 9,891 crore, compared with Rs 1,156 crore a year ago, supported by its shift to an inventory ownership model. Sequentially, Blinkit’s revenue rose from Rs 2,400 crore in Q1 FY26.

Despite the topline boost, Blinkit’s EBITDA loss widened to Rs 156 crore from Rs 8 crore a year earlier, largely due to aggressive store expansion. However, on a sequential basis, losses narrowed from Rs 162 crore in Q1 FY26.

The company’s dark store count increased to 1,816 in Q2 FY26 from 791 last year, with average monthly transacting users rising to 20.8 million from 8.9 million in Q2 FY25.

Food delivery

Zomato’s food delivery vertical posted a 22 per cent YoY growth in adjusted revenue to Rs 2,863 crore, up from Rs 2,340 crore in Q2 FY25. Sequentially, the figure rose from Rs 2,657 crore.

The net order value (NOV) climbed to Rs 9,423 crore, while average monthly transacting customers reached 24.1 million, compared with 22.9 million in the previous quarter.

Revenue from Hyperpure, Eternal’s B2B supplies arm, declined to Rs 1,023 crore, from Rs 1,473 crore in Q2 FY25. The Going Out vertical also fell 26 per cent YoY to Rs 189 crore, compared with Rs 254 crore a year earlier.

In its filing, Eternal announced the incorporation of a wholly-owned subsidiary, Eternal General Service Foundation, to strengthen its community and social impact initiatives.