Eternal posts 65% adjusted revenue growth in Q2, profit narrows amid quick commerce investments

Deepinder Goyal-led Eternal saw its second-quarter adjusted revenue growth of 65% from last year, even as its profit narrowed as heavy investments in quick commerce continue to weigh on its bottom line.

The company clocked Rs 13,590 crore in operating revenue, 1.8x greater than Rs 4799 crore it clocked in the previous year. On a quarterly basis, it saw 89% growth to Rs 7167 crore, according to exchange documents.

The Blinkit and Zomato parent posted a net profit of Rs 65 crore, lower than the Rs 176 crore it made in the corresponding quarter in the previous year. On a sequential basis, its bottom line improved from Rs 25 crore in the June quarter.

Shares of the company were trading 4.3% lower on NSE at Rs 338 apiece after results were posted.

Blinkit, a leader in the country's quick commerce segment, saw its NOV more than double on yearly basis and reach a record high of Rs 11,679 crore.

The segment revenue also surged as the company shifted to an inventory model from its previous marketplace model, allowing it to realise the full monetary price of goods sold instead of the marketplace commission.

The Albinder Dhindsa-led segment clocked an 8x revenue surge to Rs 9891 crore from Rs 1156 crore last year and Rs 2400 crore in the June quarter.

"As a result, in Q2FY26 about 80% of the NOV was on our own inventory which is expected to go to a steady state number of about 90% in the next quarter. The transition was done smoothly without any disruption to the business," CEO Deepinder Goyal shared in the shareholder letter.

The company's core food delivery segment saw improvements in volume growth after a consecutive decline over the last one year.

Zomato, the food delivery segment, posted 22% growth in adjusted revenue to Rs 2,863 crore from Rs 2340 crore in the previous year. On a sequential basis, the segment grew 7% from Rs 2,657 crore in the previous quarter.

Management of the NCR-based company noted multiple headwinds for the food delivery sector, including soft discretionary spending, consumption, quick commerce popularity and volatile weather conditions.

Its growing B2B segment, housed under Hyperpure, saw its revenue decline in the non-restaurant business due to the transition to inventory ownership model in quick commerce. The core restaurant business, which supplies food and vegetables among other categories to restaurants and eateries, grew steadily at 42% to Rs 940 crore from 662 crore.

Its smallest vertical, the going-out business housed under District continued on its loss streak as heavy investments in category creation and marketing weighed on the segment.

The segment clocked a sequential decline in revenue to Rs 189 crore from Rs 207 crore in the June quarter. It saw a 23% growth from RS 154 crore in 2023.