Eternal Q2 revenue jumps 78% as Blinkit scales

Eternal Limited (

) reported Q2FY27 operating revenue of ₹24,138 crore, up 78% year-on-year. Blinkit remained the key driver, contributing nearly 80% of consolidated revenue and delivering 94% revenue growth to ₹19,152 crore. The headline growth looks strong, but the more important takeaway is where that growth is coming from. Quick commerce is now the centre of Eternal’s earnings story. Blinkit not only maintained rapid expansion but also reported positive adjusted EBITDA of ₹184 crore, compared with a loss of ₹156 crore a year ago. Margin improved for the sixth straight quarter, suggesting scale benefits are starting to emerge. However, the quarter was not without concerns. Net profit rose to ₹125 crore, but missed market expectations of ₹250-300 crore. Management attributed part of the gap to higher depreciation from faster Blinkit store expansion and a higher effective tax rate. Eternal added 308 Blinkit stores in the quarter and has raised its target to 3,500 stores by March 2027. What the headline may miss is that profitability now depends on balancing growth with returns. New stores typically pressure margins in the early phase, and competition in quick commerce remains intense. While mature Blinkit stores operate at over 5% margin, investors will need evidence that newer locations can follow a similar path without requiring continuous spending support. Another emerging area is the planned launch of privacy-focused AI assistant ***** For now, it remains a future opportunity rather than a contributor to earnings. The key monitorables are Blinkit’s margin trajectory, returns from aggressive store additions, and whether profit growth can catch up with revenue growth. The business momentum is strong, but execution and capital allocation remain the variables to watch.