Eternal Q2 FY27 results: net profit up 92.3% to ₹125 crore, revenue up 77.6%

How did Eternal perform in Q2 FY27?

Eternal’s consolidated Q2 FY27 revenue was ₹24,138 crore, compared with ₹13,590 crore in Q2 FY26 and ₹20,211 crore in Q1 FY27. Total income was ₹24,489 crore. The quarter ended with EBITDA of ₹752 crore, an EBITDA margin of 3.1%, PBT of ₹323 crore, a net profit of ₹125 crore and basic EPS of ₹0.14.

Against Q2 FY26, EBITDA rose by ₹513 crore and PBT by ₹194 crore, while PAT increased by ₹60 crore and EPS by ₹0.07. Against Q1 FY27, EBITDA rose by ₹158 crore, PBT by ₹51 crore and PAT by ₹33 crore, with EPS up by ₹0.04. The standalone result showed revenue of ₹3,663 crore and PAT of ₹641 crore, against profit before tax of ₹691 crore.

What changed in Eternal's costs and profit?

Total expenses rose to ₹24,166 crore in Q2 FY27 from ₹13,813 crore in Q2 FY26, an increase of ₹10,353 crore. Other expenses increased by ₹2,894 crore to ₹7,638 crore, employee cost by ₹281 crore to ₹1,146 crore, depreciation by ₹249 crore to ₹625 crore and finance costs by ₹69 crore to ₹155 crore. Cost of materials was ₹60 crore, against no cost of materials reported for Q2 FY26.

Other income was ₹351 crore, ₹1 crore lower than Q2 FY26, while tax expense rose by ₹134 crore to ₹198 crore. There was no exceptional item in either quarter. Against Q1 FY27, total expenses increased by ₹3,852 crore, including a ₹1,120 crore rise in other expenses, while other income fell by ₹24 crore and tax rose by ₹18 crore.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue was ₹44,349 crore, compared with ₹20,757 crore in H1 FY26, an increase of ₹23,592 crore or 113.7%. Total income rose by ₹23,612 crore or 110.0% to ₹45,075 crore, while PBT increased by ₹378 crore or 174.2% to ₹595 crore.

PAT for the first half was ₹217 crore, up from ₹90 crore in H1 FY26, while EPS was ₹0.24 against ₹0.10. The increase in profit was accompanied by higher expenses, as total income grew 110.0% while total expenses rose 75.0% in the year-ago comparison provided for the quarter.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹45,109 crore, compared with ₹40,736 crore at 31 March 2026, while total equity was ₹31,268 crore against ₹30,973 crore. Borrowings were ₹0 crore at both dates. Cash declined to ₹467 crore from ₹996 crore, while inventories rose to ₹4,262 crore from ₹2,181 crore.

Trade receivables increased to ₹2,007 crore from ₹1,764 crore and trade payables to ₹5,872 crore from ₹3,010 crore. H1 FY27 operating cash flow was ₹278 crore, compared with ₹38 crore in H1 FY26. Investing cash flow was negative ₹150 crore against positive ₹69 crore, while financing cash flow was negative ₹659 crore against negative ₹344 crore. Capital expenditure was ₹1,656 crore, compared with ₹788 crore.

How has Eternal done over the last 8 quarters?

Revenue rose in each of the last eight quarters, increasing from ₹5,405 crore in Q3 FY25 to ₹24,138 crore in Q2 FY27. EBITDA margin moved from 3.0% in Q3 FY25 to a low of 1.2% in Q4 FY25 and then reached 3.1% in Q2 FY27. Profit increased year on year in each of the last four quarters, reaching ₹125 crore in Q2 FY27.

Which businesses drove the quarter?

Quick commerce was the largest reported segment in Q2 FY27, with revenue of ₹19,155 crore, up 93.6% from ₹9,892 crore in Q2 FY26, and EBIT of ₹488 crore against ₹5 crore. Its reported EBIT margin was 2.5%.

India food ordering and delivery reported revenue of ₹3,417 crore, up 36.9% from ₹2,496 crore, with EBIT of ₹647 crore compared with ₹518 crore and an EBIT margin of 18.9%. Hyperpure supplies recorded revenue of ₹1,219 crore, up 18.1% from ₹1,032 crore, and EBIT of ₹19 crore against ₹1 crore.

Going Out reported revenue of ₹304 crore, up 60.8% from ₹189 crore, and EBIT of negative ₹55 crore against negative ₹57 crore, with an EBIT margin of negative 18.1%. All other segments reported revenue of ₹148 crore and EBIT of negative ₹85 crore; no year-ago figures were provided for that residual segment.

What else did the company announce?

On 21 October 2026, the board approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026, subject to limited review by Deloitte Haskins & Sells. It also approved a Business Transfer Agreement to move the Going-out India business from Eternal to wholly owned subsidiary Zomato Entertainment Private Limited by slump sale on a going-concern basis.

The company said the reorganisation is part of an internal restructuring exercise intended to consolidate Going-out India operations in one subsidiary, streamline the corporate structure and achieve operational synergies. ZEPL is expected to pay cash consideration of approximately ₹130,75,56,871, subject to adjustments, and the sale was expected to be completed within 30 days of execution of the agreement.

The board also approved the sale of Eternal’s entire Adonmo holding to Mygate in exchange for Mygate shares, as a step towards a proposed merger. Eternal said it would eventually own approximately 4.4% of the merged Mygate entity on a fully diluted basis, with that stake currently valued at INR 156 crore. The transaction was subject to definitive agreements and customary closing conditions.

What did the auditors point out?

The statutory auditors’ report included an emphasis of matter. The available filing excerpts do not set out the wording of the emphasized matter, so the specific audit focus cannot be stated from the excerpts provided. The same-day filing says the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026 were subjected to limited review by Deloitte Haskins & Sells, and the review report was enclosed with the results.

What did Eternal's management say?

Management said FY29 adjusted EBITDA guidance was maintained at $1 billion. It said food-delivery margins are expected to remain broadly flat over the next 1–2 years while surplus is reinvested in growth, and that competitive intensity in food delivery was higher than in the previous few quarters. The CFO said: “Directionally, we want to maintain margins broadly and reinvest in growth as much as it makes sense to continue to drive the growth upwards. That's what the operating principle is.”

Management said Blinkit dark stores are targeted to nearly double over the next 6–7 quarters, with accelerated additions from OND and the bulk of expansion in smaller cities. It said Blinkit NOV growth is expected to pick up from the December quarter on a YoY basis, while steady-state NOV per day per store could reach about INR 11 lakh versus INR 9 lakh today. New-store capex guidance was INR 2.5 crore on a blended basis.

The CFO said dark.ai was not yet monetised, its costs were in the Others segment and were not meaningful at present. Management identified competitive intensity and sustained growth investment as risks, while saying smaller-city store economics had shown good paybacks. The CEO said: “Look, we already sell air conditioners, and you can't keep just one week of inventory for air conditioners. So obviously, the holding period is much longer for those products, and we are comfortable doing that.”

How did Eternal shares react?

Eternal’s shares were unchanged at the five-minute mark after the filing appeared, then fell 2.5% on the reaction day from the pre-results close of ₹320.2. By the next day’s close, the stock was down 4.9% from that close, before it was up 2.4% by the five-session mark.

Earlier reaction-day moves were mixed: 0.1% on 22 July 2026, negative 2.2% on 21 January 2026, 7.3% on 21 July 2025 and negative 7.2% on 20 January 2025. These figures describe the historical share-price reactions and do not indicate a future movement.

How did other E-Retail/ E-Commerce companies do?

Eight other E-Retail/E-Commerce companies had filed for the quarter as of 4 November 2026. Their median revenue growth was 23.1%, while Eternal’s revenue growth was higher than all eight peers. The median was below Eternal’s 77.6% revenue growth for Q2 FY27.

Of the eight peers, all eight grew more slowly than Eternal. Of the six peers for which profit was compared, five reported higher profit. The peer figures cover companies in the E-Retail/E-Commerce industry and do not include Eternal.