Eternal Ltd (formerly Zomato) reported a 92.3% year-on-year (YoY) increase in consolidated net profit to ₹125 crore for Q2 FY27, while revenue from operations grew 77.6% to ₹24,138 crore. Consolidated adjusted EBITDA surged 197% to ₹666 crore, supported by strong growth in Blinkit and improving profitability across key businesses.
However, the Eternal Q2 FY27 Results, announced on 21 October 2026, also highlighted concerns. Net profit missed analyst expectations as delivery, employee, and depreciation costs rose, despite improved operating profitability.
This Eternal Q2 FY27 Results Analysis examines financial performance, Blinkit's expansion, Zomato's margins, District and Hyperpure's profitability, and the key factors investors should monitor.
Table of Contents
- Eternal Q2 FY27 Results Highlights
- Revenue and EBITDA Performance
- Why Eternal's Net Profit Missed Estimates
- Eternal Q2 FY27 Segment-Wise Performance
- What Improved in Eternal's Operating Performance?
- Key Risks for Eternal Investors
- Eternal Share Price Reaction After Q2 Results
- What Investors Should Monitor Next
Eternal's September 2026 quarter showed strong revenue expansion and improving operating profitability. However, the difference between operating earnings and reported net profit remained significant.
Eternal Q2 FY27 Financial Highlights
The table below shows Eternal’s financial and operating figures for Q2 FY27.
| Financial metric |
Q2 FY27 |
| Revenue from operations |
₹24,138 cr |
| Consolidated adjusted revenue |
₹24,621 cr |
| Reported EBITDA |
₹752 cr |
| Reported EBITDA margin |
3.1% |
| Consolidated adjusted EBITDA |
₹666 cr |
| Profit after tax (PAT) |
₹125 cr |
| Total expenses |
₹24,166 cr |
| B2C net order value (NOV) |
₹35,644 cr |
Q2 FY26 Comparison and Growth
Eternal’s Q2 FY27 performance compared with Q2 FY26 as follows:
| Financial metric |
Q2 FY26 / Growth |
| Revenue from operations |
₹13,590 cr; +77.6% YoY |
| Consolidated adjusted revenue |
+76% YoY; +19% QoQ |
| Reported EBITDA |
₹239 cr; +215% YoY |
| Reported EBITDA margin |
1.8%; +130 bps |
| Consolidated adjusted EBITDA |
+197% YoY; +20% QoQ |
| Profit after tax (PAT) |
₹65 cr; +92.3% YoY |
| Total expenses |
+74.9% YoY |
| B2C net order value (NOV) |
+54% YoY |
The results highlight three developments:
-
Strong revenue growth: Revenue from operations increased nearly 78%, reflecting rapid business expansion.
-
Improving operating profitability: Adjusted EBITDA grew substantially faster than adjusted revenue, indicating improved operating leverage.
-
Limited net profit conversion: Despite operating improvements, PAT reached only ₹125 crore, highlighting the impact of depreciation, employee expenses and other costs.
The distinction between reported and adjusted performance is important. Adjusted EBITDA is a company-defined operating measure, while PAT reflects the final profit after applicable expenses, other income and taxes.
/content-assets/54d51fed99ac40049b211f31a1a27b87.png)
Want to evaluate the market's response to Eternal's revenue growth, profit miss and improving operating margins? Review the Eternal share price alongside its stock charts and valuation indicators.
The Eternal Q2 FY27 report showed strong revenue growth across the company's consumer businesses, with Blinkit contributing significantly to the expansion.
Revenue Growth and Business Scale
Revenue from operations increased from ₹13,590 crore in Q2 FY26 to ₹24,138 crore in Q2 FY27, representing 77.6% YoY growth.
Consolidated adjusted revenue reached ₹24,621 crore, registering:
The difference between headline and like-for-like growth is important when assessing the underlying business.
The comparable growth measure accounts for changes such as Blinkit's transition towards an inventory-ownership model, which affects revenue recognition and comparisons across periods. Therefore, the 76% reported adjusted-revenue growth should not be interpreted entirely as organic demand growth on an unchanged accounting basis.
Nevertheless, 58% like-for-like growth indicates substantial expansion even after adjusting for such comparability differences.
Consolidated Adjusted EBITDA Rises 197%
Eternal's consolidated adjusted EBITDA increased 197% YoY to ₹666 crore and grew 20% sequentially.
This was significantly faster than adjusted-revenue growth of 76%, indicating that operating profitability improved as the businesses expanded.
Reported EBITDA also increased from ₹239 crore to ₹752 crore, while the reported EBITDA margin improved by 130 basis points to 3.1%.
The improvement suggests Eternal is generating more operating earnings from its expanding revenue base. However, sustaining these gains while funding Blinkit's dark-store expansion remains an important test.
Despite reporting strong revenue and EBITDA growth, Eternal's Q2 FY27 net profit of ₹125 crore fell substantially short of analyst expectations.
According to LSEG consensus estimates, analysts had expected net profit of ₹271 crore. Revenue from operations, however, exceeded expectations.
Eternal Q2 FY27 Actual Results vs Estimates
Actual Results
|
Metric
|
Actual Q2 FY27
|
|
Profit after tax
|
₹125 cr
|
|
Revenue from operations
|
₹24,138 cr
|
Analyst Estimates
|
Metric
|
Analyst Estimate
|
|
Profit after tax
|
₹271 cr
|
|
Revenue from operations
|
₹23,921 cr
|
While revenue exceeded the estimate by ₹217 crore, reported PAT was approximately 54% below consensus.
What Weighed on Profitability?
The primary concern was the company's expanding cost base.
Total expenses increased 74.9% YoY to ₹24,166 crore, driven by higher delivery, employee and depreciation costs.
Several factors affected the relationship between operating earnings and net profit:
-
Delivery expenses: Higher delivery-related expenditure accompanied growing order volumes and business scale.
-
Employee costs: Rising employee expenditure added to operating expenses.
-
Depreciation: Continued investments in Blinkit's store network and infrastructure increased the importance of depreciation costs.
-
Below-EBITDA expenses: Finance costs, depreciation and taxation affect final profitability and are not fully captured by EBITDA measures.
Although adjusted EBITDA reached ₹666 crore, PAT stood at just ₹125 crore. These figures are not directly reconcilable without considering the company's adjusted-EBITDA definitions, other income, finance costs, depreciation and taxes.
For investors, the important question is whether stronger operating earnings can translate into sustained growth in reported net profit.
Eternal operates across multiple consumer and business-facing platforms, including Blinkit, Zomato food delivery, District, Hyperpure and newer initiatives.
The segment results show a difference in growth and profitability. Blinkit remained the fastest-growing major business, while Zomato food delivery continued to generate the largest adjusted EBITDA contribution.
1. Blinkit Q2 FY27 Results: Growth Engine With Improving Margins
Blinkit delivered strong growth in the September quarter, supported by expanding net order value and its dark-store network.
Blinkit's NOV increased 79.3% YoY to ₹20,940 crore.
Adjusted EBITDA rose to ₹184 crore from ₹102 crore in the preceding quarter, representing an improvement of ₹82 crore.
Its adjusted EBITDA margin reached 0.9% of NOV, marking the sixth consecutive quarter of margin improvement.
This is significant because Blinkit is expanding its operations while simultaneously improving adjusted profitability.
Blinkit Store Expansion Plans
Blinkit added 308 stores during Q2 FY27, taking its total network to 2,751 stores.
Management has outlined the following expansion targets:
|
Period
|
Blinkit Store Network
|
|
September 2026
|
2,751 stores
|
|
March 2027 target
|
More than 3,500 stores
|
|
March 2028 target
|
Around 5,000 stores
|
The planned expansion could support future order growth by increasing Blinkit's delivery coverage and capacity.
However, new stores require expenditure on infrastructure, supply chains and operations before reaching maturity.
Investor perspective: Blinkit's improving margins suggest stronger operating economics, but sustaining profitability during rapid network expansion will be central to Eternal's long-term earnings performance.
2. Zomato Food Delivery: Stable Margins and Profitability
Zomato's food-delivery business maintained steady growth and remained Eternal's largest adjusted-EBITDA contributor.
Net order value increased 21.5% YoY to ₹11,445 crore.
Adjusted EBITDA grew 25% YoY to ₹627 crore, reflecting continued profitability in the company's established business.
However, the adjusted EBITDA margin declined marginally from 5.6% in Q1 FY27 to 5.5% in Q2 FY27.
This small sequential decline indicates that profitability remained relatively stable despite continued business growth.
Compared with Blinkit's 79.3% NOV growth, Zomato food delivery expanded at a slower pace. However, its substantially larger adjusted EBITDA contribution makes it an important source of operating earnings.
For investors, the focus is on whether food delivery can sustain growth without materially weakening margins, while continuing to support overall cash generation.
3. District Q2 FY27 Results: Revenue Expands, Losses Continue
District, Eternal's going-out business, recorded 58% YoY growth in net order value to ₹3,259 crore.
Adjusted revenue reached ₹304 crore, indicating continued expansion.
However, the business remained loss-making at the adjusted EBITDA level.
District reported an adjusted EBITDA loss of ₹64 crore during Q2 FY27.
Its adjusted EBITDA margin improved from -3.1% of NOV in Q2 FY26 to -2.0% in Q2 FY27.
The improvement suggests that losses are reducing relative to the value of transactions handled by the platform.
Nevertheless, District has not yet become a positive contributor to consolidated adjusted EBITDA.
Investor perspective: District's future contribution will depend on whether rising transaction volumes can translate into better operating margins and eventually positive adjusted EBITDA.
4. Hyperpure Q2 FY27 Results: Adjusted EBITDA Turns Positive YoY
Hyperpure, Eternal's B2B supplies business, reported revenue of ₹1,154 crore during the quarter.
Revenue grew 22.7% YoY on a like-for-like basis.
More importantly, adjusted EBITDA improved to a profit of ₹10 crore compared with a loss of ₹5 crore in Q2 FY26.
The adjusted EBITDA margin increased from -0.5% to 0.9%.
This represents a ₹15 crore year-on-year improvement in adjusted EBITDA.
Hyperpure's performance indicates that its expanding revenue base is translating into improved operating profitability.
Unlike businesses still generating adjusted EBITDA losses, Hyperpure now contributes positively at this level.
The next important factor is whether it can sustain positive margins while continuing to expand.
5. Bistro and Nugget: New Businesses Continue to Record Losses
Eternal's Others segment, comprising Bistro and Nugget, continued to expand during Q2 FY27.
Adjusted revenue increased to ₹132 crore from ₹95 crore in Q1 FY27.
However, the combined adjusted EBITDA loss remained substantial at ₹91 crore, compared with ₹94 crore in the previous quarter.
Although revenue improved sequentially, adjusted EBITDA losses narrowed by only ₹3 crore.
This suggests that the businesses remain in an investment phase, with operating expenditure continuing to absorb a significant portion of their revenue.
For investors, these initiatives represent both potential diversification opportunities and additional earnings risks.
If investment increases faster than profitability improves, losses from newer businesses could continue to weigh on consolidated financial performance.
The Eternal Q2 FY27 earnings highlighted improvements in operating scale and segment profitability, even though consolidated PAT missed estimates.
Several developments stand out:
- Stronger consumer demand: B2C NOV increased 54% YoY to ₹35,644 crore, reflecting rising transaction value across Eternal's consumer platforms.
- Improved operating leverage: Adjusted EBITDA grew 197% YoY against adjusted-revenue growth of 76%, indicating faster growth in operating earnings.
- Blinkit margin improvement: Blinkit recorded its sixth consecutive quarter of adjusted EBITDA margin expansion, reaching 0.9% of NOV.
- Hyperpure's profitability improvement: Adjusted EBITDA increased from a ₹5 crore loss a year earlier to a ₹10 crore profit.
- Reduced District loss intensity: District's adjusted EBITDA loss margin improved by 110 basis points YoY, although absolute losses continued.
These developments suggest that Eternal's larger businesses are becoming more efficient as they scale.
However, the improvement is uneven. Zomato food delivery and Blinkit generate positive adjusted EBITDA, while District and newer initiatives continue to absorb earnings.
Despite substantial revenue and operating-profit growth, the Eternal Q2 results highlighted several risks that could influence future financial performance.
1. Rising Operating Costs
Total expenses increased 74.9% YoY, reflecting the cost of scaling operations.
Higher delivery and employee expenses, alongside depreciation, contributed to the earnings miss.
Investors should monitor whether cost growth moderates as the businesses expand.
2. Blinkit's Aggressive Store Expansion
Blinkit aims to expand from 2,751 stores to approximately 5,000 by March 2028.
While this supports growth opportunities, store additions require infrastructure investment and can increase depreciation and operating expenditure.
The pace at which new stores reach sustainable profitability will be important.
3. Competition in Quick Commerce
Blinkit operates in a competitive quick-commerce market where rivals are also expanding their store networks.
Competition can affect operating costs, customer acquisition expenditure and profitability.
Sustaining NOV growth alongside improving margins will therefore be essential.
4. Continued Losses in New Businesses
District recorded an adjusted EBITDA loss of ₹64 crore, while Bistro and Nugget reported combined losses of ₹91 crore.
Although losses in some businesses are narrowing, continued investment could limit consolidated profitability improvements.
5. Gap Between Adjusted EBITDA and Reported Profit
Eternal reported consolidated adjusted EBITDA of ₹666 crore against PAT of ₹125 crore.
While these measures capture different aspects of performance, the gap reinforces the need to assess actual earnings after depreciation, financing expenses and taxes.
Investors should avoid evaluating profitability solely through adjusted operating metrics.
Eternal shares declined following the announcement of its September 2026 quarterly results, as investors assessed the profit miss against the stronger operating performance.
On 21 October 2026, Eternal shares closed at ₹311.75 on the BSE, declining 2.71%.
The share price recovered during early trading on 22 October, with indications around ₹314 on the NSE at approximately 9:20 am. The opening-session recovery was also reflected in later morning quotations.
The mixed reaction reflected two competing developments.
On one hand, PAT was substantially below consensus estimates, raising concerns about cost pressures.
On the other, Blinkit's stronger profitability, expansion plans and consolidated adjusted EBITDA growth supported a more constructive operating outlook among brokerages.
These opposing factors help explain why the initial decline was followed by buying interest during the next trading session.
The latest Q2 FY27 results suggest that the company's operating performance is improving, but converting rapid business growth into sustained reported profitability remains the central challenge.
Investors should track the following indicators in subsequent quarters:
-
Blinkit store additions: Progress towards more than 3,500 stores by March 2027 and approximately 5,000 by March 2028.
-
Blinkit adjusted EBITDA margin: Whether quick-commerce profitability continues to improve while the store network expands.
-
Zomato food-delivery margins: Whether the business can maintain profitability near the current 5.5% adjusted EBITDA margin.
-
Hyperpure profitability: Whether the platform sustains positive adjusted EBITDA alongside revenue growth.
-
District and new-business losses: Whether operating losses narrow as revenue and transaction volumes increase.
-
Reported PAT and cost growth: Whether consolidated operating improvements translate into stronger net profit after depreciation, finance costs and taxes.
Conclusion
Eternal delivered strong operating growth in Q2 FY27, with revenue increasing 77.6% to ₹24,138 crore and consolidated adjusted EBITDA rising 197% to ₹666 crore.
Blinkit emerged as the main growth driver, with NOV increasing 79.3% and adjusted EBITDA reaching ₹184 crore. Hyperpure also improved profitability, while Zomato food delivery maintained a healthy adjusted EBITDA contribution.
However, the ₹125 crore net profit fell significantly short of analyst expectations, and continued losses in District, Bistro and Nugget highlighted the cost of business expansion.
The key takeaway from this Eternal Q2 FY27 Results Analysis is that operating growth and profitability are moving in a positive direction, but investors still need evidence of stronger profit conversion and sustainable margins across the portfolio.
Want to understand how Eternal's business performance changed between Q1 and Q2 FY27? Read the Eternal Q1 FY27 Results Analysis to compare segment-wise growth, Blinkit's contribution, operating margins and profitability trends.
Eternal Q2 FY27 Results FAQs
1. What was Eternal's net profit in Q2 FY27?
Eternal reported consolidated net profit of ₹125 crore in Q2 FY27, up 92.3% from ₹65 crore in Q2 FY26. However, the profit was below the LSEG analyst consensus estimate of ₹271 crore, primarily due to higher delivery, employee and depreciation costs.
2. How much did Eternal's revenue grow in Q2 FY27?
Eternal's revenue from operations increased 77.6% YoY to ₹24,138 crore from ₹13,590 crore. Consolidated adjusted revenue grew 76% YoY to ₹24,621 crore, while like-for-like growth was 58%.
3. How did Blinkit perform in Eternal Q2 FY27 results?
Blinkit's net order value increased 79.3% YoY to ₹20,940 crore. Adjusted EBITDA reached ₹184 crore, with a margin of 0.9% of NOV. Its store network expanded to 2,751 stores after adding 308 stores during the quarter.
4. Was Zomato's food-delivery business profitable in Q2 FY27?
Yes. Zomato food delivery recorded adjusted EBITDA of ₹627 crore, growing 25% YoY. Its adjusted EBITDA margin stood at 5.5% of net order value, compared with 5.6% in the previous quarter.
5. What are the main concerns after Eternal Q2 FY27 results?
The primary concerns include higher operating costs, Blinkit's expansion-related expenditure, quick-commerce competition, continued losses in District and newer businesses, and the gap between adjusted EBITDA and reported net profit. Investors should monitor whether operating growth translates into stronger and more sustainable earnings.