Eternal Q2 FY27 Results: Net Profit Jumps 92% to ₹125 Crore as Revenue Surges 78%

Key Takeaways

• Net profit rises 92.3%: Eternal reported consolidated net profit of ₹125 crore, compared with ₹65 crore in Q2 FY26.
• Revenue jumps 78%: Revenue from operations reached ₹24,138 crore, up from ₹13,590 crore a year earlier.
• Profit misses estimates: The reported profit was significantly below the average analyst estimate of ₹271 crore cited by Reuters.
• Expenses remain elevated: Total expenses increased 75% year over year to ₹24,166 crore.
• Blinkit expansion remains central: Investment in quick commerce is supporting growth but weighing on near-term profitability.
• Business restructuring: Eternal announced plans to consolidate its going-out business under one subsidiary and restructure its investment in Adonmo.

Eternal Q2 FY27 Results: The Key Numbers

Eternal’s September-quarter results show the scale of its business expansion. Revenue grew substantially, and net profit nearly doubled from the relatively low base recorded a year earlier. However, the gap between revenue growth and the market’s profit expectations remains important.

Financial metric	Q2 FY27	Q2 FY26	Year-on-year change
Revenue from operations	₹24,138 crore	₹13,590 crore	+78%
Net profit	₹125 crore	₹65 crore	+92.3%
Total expenses	₹24,166 crore	₹13,813 crore	+75%
Net profit in previous quarter	₹92 crore	—	—

Source: Moneycontrol and Reuters. Figures are rounded.

The figures reveal two developments. First, Eternal is generating substantially more revenue than it did a year ago, reflecting the expansion of its business. Second, the company is spending heavily to support that growth, limiting how much revenue translates into net profit.

Eternal’s net profit also increased from ₹92 crore in the June 2026 quarter to ₹125 crore in the September quarter. That is a sequential improvement, although quarterly comparisons can be affected by business mix, spending patterns and other factors.

Why Did Eternal’s Profit Miss Market Expectations?

The central concern was not that profit declined year over year. Instead, it was that the reported ₹125 crore profit fell well short of analyst expectations.

Reuters reported that analysts tracked by LSEG had expected average net profit of ₹271 crore. The actual result was less than half that estimate, making the earnings announcement weaker than the headline growth rate initially suggests.

A company can report fast revenue growth while missing profit estimates when costs rise, margins weaken or spending occurs faster than expected. In Eternal’s case, investment in expanding Blinkit was a key factor highlighted in market coverage.

Quick-commerce companies need to invest in fulfilment infrastructure, delivery operations, product availability and customer acquisition to support their expansion. These investments may help build a larger business over time, but they can also pressure near-term earnings.

The key question for investors is whether these expenses generate sufficient future sales and operating profit. Revenue growth alone cannot establish whether the investment is delivering attractive returns.

Blinkit Expansion: Growth Opportunity and Cost Pressure

Blinkit is a major part of Eternal’s growth strategy. The quick-commerce platform competes in a market where consumers increasingly expect groceries, household products and other everyday items to arrive quickly.

Quick commerce can generate substantial order volumes, but operating the service requires a network capable of storing, picking and delivering products efficiently. As the business expands into new locations and serves more customers, the company must balance growth with the economics of each order.

Several factors will influence whether Blinkit’s expansion ultimately strengthens Eternal’s financial performance:

• Order growth: More orders can increase revenue and improve the use of existing infrastructure.
• Average order value: Larger baskets can help spread fulfilment and delivery costs across more merchandise.
• Delivery and fulfilment costs: Efficient operations are necessary to improve profitability as volumes rise.
• Competition: Pricing, discounts and customer incentives can affect margins.
• Store and network utilisation: New infrastructure needs sufficient demand to justify its operating costs.

Investors will therefore be watching more than Blinkit’s revenue growth. They will also want evidence that the business can scale without requiring costs to rise at the same pace as sales.

The latest results do not, by themselves, prove whether the expansion will deliver attractive long-term returns. That assessment will require a closer look at segment-level performance, margins, capital requirements and cash generation over multiple quarters.

What the Results Say About Eternal’s Business Model

Eternal’s broader business combines food delivery with quick commerce and other consumer-facing services. These operations provide opportunities to serve customers across different shopping and consumption occasions, but they also have different cost structures and competitive dynamics.

Food delivery relies on order volumes, restaurant partnerships, delivery efficiency and customer frequency. Quick commerce depends heavily on fulfilment infrastructure, inventory availability and the cost of delivering small baskets rapidly.

This means consolidated revenue can grow quickly even while the profitability of individual businesses varies. Investors need to understand which segments are generating earnings, which require further investment and how the overall mix changes over time.

The company’s reported figures illustrate why consolidated profit is only one part of the picture. Revenue from operations increased by about ₹10,548 crore year over year, while total expenses rose by about ₹10,353 crore. These comparisons are rounded and do not replace a detailed analysis of the income statement, but they show how much of the additional revenue was accompanied by higher expenses.

For a growth-oriented company, investment spending is not automatically negative. The important issue is whether it builds durable customer demand and a business capable of producing stronger profits in the future.

Eternal Plans Changes to Its Going-Out Business

Alongside its earnings announcement, Eternal outlined plans to consolidate its going-out business under a single subsidiary. The company also announced a restructuring of its investment in Adonmo through a share swap with Mygate, according to NDTV Profit’s coverage.

The going-out business serves a different customer need from food delivery and quick commerce, linking the company to activities and experiences outside the home. Consolidating operations under one subsidiary could help bring related activities under a more unified structure, although the precise financial impact depends on the implementation and terms.

The Adonmo transaction is a separate corporate development. Investors should assess its details independently from the quarterly earnings numbers rather than assume that it will immediately improve operating profitability.

Such structural changes can affect how a company organises its businesses, allocates capital and reports performance. Their significance will become clearer as more details and subsequent financial disclosures emerge.

What Investors Should Watch Next

The next phase of Eternal’s performance will be judged on its ability to convert fast revenue growth into more predictable earnings.

Investors should focus on five areas:

1. Profit versus expectations: Whether future earnings move closer to analyst forecasts.
2. Blinkit economics: Whether quick-commerce expansion produces better operating leverage over time.
3. Expense growth: Whether total costs begin to grow more slowly than revenue.
4. Segment profitability: How food delivery, quick commerce and other businesses contribute to consolidated earnings.
5. Cash generation: Whether growth can be supported with improving cash flows and sustainable investment requirements.

The share-price reaction should also be interpreted in context. A stock can fall after strong year-on-year growth if investors expected even better results or become concerned about the cost of future expansion.

The latest quarter does not establish that Eternal’s long-term growth strategy is failing. It does, however, underline the need to demonstrate that investment in expansion can eventually translate into stronger profitability.

The Bigger Picture

Eternal is operating in a competitive consumer-internet market where scale, delivery speed and customer convenience can create opportunities for growth. Its 78% revenue increase highlights the rapid expansion of the business, but the profit shortfall shows that growth and earnings performance do not always move together.

For investors, the critical issue is the quality of that growth. If Blinkit’s expansion eventually supports stronger margins and sustainable cash generation, current spending may prove strategically valuable. If expenses remain elevated without a corresponding improvement in profitability, the market may continue to question how quickly growth can translate into earnings.

FAQs

1. What was Eternal’s net profit in Q2 FY27?

Eternal reported consolidated net profit of ₹125 crore for the quarter ended September 30, 2026, up 92.3% from ₹65 crore in the year-ago quarter.

2. How much did Eternal’s revenue increase?

Revenue from operations rose 78% year over year to ₹24,138 crore in Q2 FY27, compared with ₹13,590 crore in Q2 FY26.

3. Why did Eternal’s results disappoint analysts?

Although profit increased year over year, it was below the average analyst estimate of ₹271 crore reported by Reuters. Higher spending associated with Blinkit’s expansion weighed on profitability.

4. What are Zomato and Blinkit under Eternal?

Eternal is the parent company of the Zomato food-delivery platform and Blinkit quick-commerce business. The company changed its name from Zomato to Eternal in March 2025.

Looking Ahead

Eternal’s next few quarters will help determine whether its rapid revenue growth can translate into stronger and more consistent profits. Blinkit’s expansion, operating efficiency and the company’s ability to manage costs will remain central to that assessment.

Investors should track both the scale of growth and the earnings generated from it. A narrowing gap between revenue expansion and profit expectations could improve confidence in the strategy, while persistent earnings shortfalls would keep attention on costs, margins and the returns from continued investment.