Profit After Tax (PAT): ₹65 crore in Q2FY26, down 63% YoY from ₹176 crore in Q2FY25.
Revenue Growth: Revenue from operations surged 183% year-on-year, rising to ~₹13,590 crore.
The sharp drop in profits comes amid high costs, investments, and aggressive expansion in its quick commerce business, Blinkit.
What Drove the Profit Decline?
1. Elevated Costs & Investments
Eternal has ramped up spending on marketing, infrastructure, store expansion, logistics, and delivery operations—especially in its Blinkit quick commerce arm. These costs have eaten into margins.
2. Scale vs. Margin Pressure
While scaling rapidly can drive top-line growth, unit economics and margin pressures often worsen in high-growth phases. Eternal is facing this tradeoff.
3. Sequential Improvement but Still Under Pressure
On a sequential basis, the profit of ₹65 crore is higher than Q1’s ₹25 crore, showing signs of stabilization, though still far from past highs.
Segment & Business Insights
- Blinkit / Quick Commerce: This segment is a major growth driver, with very high revenue expansion. But it remains unprofitable, and cost absorption is still a challenge.
- Food Delivery & Hyperpure: These parts of the business contribute to top-line diversification, but the sustained losses in new areas are pressuring consolidated margins.
- Adjusted EBITDA Trend: EBITDA is reported to have declined 32% YoY to ~₹224 crore in the quarter, reflecting margin squeeze at the operating level. mint
Market Reaction & Outlook
- Stock Movement: Ahead of the earnings announcement, Eternal’s share price saw gains, as market participants anticipated strong revenue growth. The Economic Times
- Analyst Forecasts: Many had expected profits to fall sharply due to margin pressures, even as revenue accelerates.
- What to Watch Going Forward:
- Whether margin improvements materialize as scale rises
- How much the company can rein in costs without hurting growth
- Sustainability of investment in Blinkit and other growth verticals
- Impact on investor sentiment if profit recovery lags
