Eternal's revenue jumps 78%, but profit misses estimates

Eternal Limited (ETERNAL) reported Q2 FY27 revenue of ₹24,138 crore, up 77.6% year-on-year. Net profit nearly doubled to ₹125 crore, but fell short of analyst expectations. The gap between revenue growth and profit delivery is what stands out to me. Blinkit remains a major growth driver. Its net order value increased 79.3% year-on-year to ₹20,940 crore. Its adjusted EBITDA margin improved to 0.9%, showing progress towards profitability. But there is a trade-off. Eternal plans to expand Blinkit's dark-store network to more than 3,500 stores by March 2027 and around 5,000 by March 2028. That expansion can strengthen its reach, particularly in smaller cities. It also raises the question of how efficiently the company can turn additional orders into profits. Food delivery presents a different picture. Its net order value grew 21.5%, and operating profit increased 25%. However, its EBITDA margin slipped slightly to 5.5%. My view: Eternal is still delivering strong growth, but the market needs evidence that growth can translate into better earnings. A larger Blinkit network is valuable only if order density, fulfilment efficiency and contribution margins improve alongside it. The next numbers I would watch are Blinkit's adjusted EBITDA margin, dark-store productivity and food delivery margins. I would also compare profit growth with revenue growth rather than relying on the headline sales figure. My stance: The growth story remains intact, but I would want clearer evidence of sustainable profitability before becoming more positive.