Eternal Q2 FY26 Results: Growth Soars, Profit Dips

Eternal (Zomato’s parent company) reported strong revenue growth but a sharp profit decline in Q2 FY26, highlighting both the scale and strain of its rapid expansion. Key Highlights: Revenue: ₹13,590 crore, up 183% YoY, led by Blinkit’s explosive growth. Net Profit: ₹65 crore, down 63% YoY due to rising expenses. EBITDA: ₹224 crore, up 30% QoQ but down 32% YoY. Blinkit: Net order value up 137% YoY; 80% of sales now follow an inventory-led model, giving better control but higher costs. Food Delivery: NOV grew 14% YoY, supported by steady demand. Working Capital: Increased by ₹482 crore QoQ amid expansion. Why It Matters: Eternal’s topline growth shows quick commerce momentum, but profitability remains a challenge as it invests heavily in logistics and technology. The shift to an inventory-led model could enhance customer experience and delivery efficiency but demands stronger capital management. Market Reaction: The stock fell nearly 4% post-results as investors weighed the profit miss against strong revenue growth. Analysts believe margins may normalize gradually as Blinkit achieves operational scale. What’s Next: Focus on margin recovery and cost discipline. Continued expansion in Blinkit stores and deeper regional penetration. Monitoring Hyperpure (B2B) and food delivery growth trends. Managing cash flow and working capital efficiency. Bottom Line: Eternal’s growth engine is firing, but sustaining profitability will define its next phase. It remains a long-term play on India’s digital consumption and quick commerce ecosystem.