Eternal Ltd Q2FY27 Result Analysis Positive Growth

Eternal Ltd, parent of Zomato and Blinkit, reported a strong operational performance in Q2FY27, supported by robust growth in food delivery and quick commerce. Consolidated net profit surged 92% YoY to ₹125 crore from ₹65 crore in Q2FY26, up 35.8% QoQ. Revenue increased 77.6% YoY to ₹24,138 crore, while adjusted EBITDA jumped 197% YoY to ₹666 crore, reflecting improving operating leverage. Food Delivery: Zomato’s net order value (NOV) grew 21.5% YoY to ₹11,445 crore, while adjusted revenue rose 35.5% to ₹3,879 crore. Monthly transacting customers increased to 28 million, indicating sustained customer engagement. Management reiterated its long-term growth expectation of over 20% annually. Quick Commerce: Blinkit delivered strong momentum, with NOV surging 79.3% YoY to ₹20,940 crore and revenue rising 93.6% to ₹19,152 crore. Adjusted EBITDA stood at ₹184 crore. The company operated 2,751 dark stores and targets over 3,500 by March 2027 and approximately 5,000 by March 2028, strengthening its expansion strategy. Other Businesses: Going-out NOV grew 58% YoY to ₹3,259 crore, while Hyperpure revenue increased 12.8% to ₹1,154 crore. Key Concerns: Cash balance declined to ₹16,475 crore from ₹18,288 crore in Q1FY27, primarily due to seasonal working capital requirements. Aggressive dark-store expansion and competitive intensity remain key factors to monitor. Research View: Eternal’s results indicate strong revenue growth, improving profitability and robust quick-commerce traction. However, sustained margins, cash-flow generation and returns on expansion investments will be critical. The outlook remains constructive, subject to valuation, technical trends and execution risks. Investors should assess risk-reward before taking fresh positions.