Eternal profit rises 92.3%, misses estimates as costs climb
Key Facts
Eternal's consolidated net profit rose 92.3% year-on-year to 1.25 billion Indian rupees in the second quarter of fiscal 2026–2027, but missed analysts' estimates, according to Reuters. The results cover the period ended September 2026, which saw pressure from higher operating costs. Analysts' average net profit estimate was 2.71 billion rupees, according to London Stock Exchange Group data cited by the agency. Actual profit thus fell short of analysts' expectations despite the sharp annual increase. Reuters attributed the pressure on earnings to higher "delivery, employee and depreciation costs" as Blinkit expanded.
Revenue from operations rose 77.6% year-on-year to 241.38 billion rupees, according to Reuters. Total expenses, meanwhile, reached 241.66 billion rupees during the quarter. Expenses thus exceeded revenue from operations, while the group reported consolidated net profit for the period. The cost pressures cited by the agency included delivery and employee expenses, alongside depreciation. These expenses came during a period that combined growth in group revenue with the expansion of quick commerce, which accounted for the largest share of its revenue.
Blinkit drove revenue growth, with its revenue rising 93.6% year-on-year to 19,152 crore rupees, according to NDTV Profit. The segment's growth rate exceeded that of group revenue from operations over the same period. Eternal's businesses include the Zomato, Blinkit, District and Hyperpure brands, according to the company's investor relations page. Hyperpure also posted adjusted earnings before interest, taxes, depreciation and amortisation of 10 crore rupees. That compared with a loss in the corresponding period, according to NDTV Profit, adding an improvement in the business's performance to Blinkit's sales growth.
Annual earnings forecasts ahead of the quarterly results pointed to strong growth in Eternal's net income. In research published by S&P Global Market Intelligence in September, Visible Alpha consensus estimates projected a 321% increase in annual net income. Those estimates put expected net income at 15.4 billion rupees for fiscal 2027. The forecasts were published before the second-quarter results, in research examining Blinkit's expansion during the fiscal year. They represent analysts' consensus estimates for annual performance, while reported quarterly earnings fell below the average estimate for the quarter.
Alongside the financial results, Eternal approved the transfer of its going-out and entertainment business in India to Zomato Entertainment, according to NDTV Profit. The receiving company is a wholly owned subsidiary of the group. The transfer aims to "simplify the group structure", according to the stated objective of the move, within a business that includes brands operating under the Eternal umbrella. In the stock market, the company's shares closed 2.45% lower at 312.35 rupees on India's National Stock Exchange in the session on 21 October 2026, according to Investing.com's historical data. The session closed as the group reported annual profit growth while missing analysts' estimates.
Management's plans call for further expansion of the store network, according to company targets reported by NDTV Profit. Management expects the network to exceed 3,500 stores by March 2027. It then aims to reach about 5,000 stores by March 2028, extending the expansion plan's timeline. These targets come after quick commerce accounted for the largest share of group revenue during the reported quarter. The store expansion plan is proceeding alongside the pressures Reuters attributed to the costs of Blinkit's expansion, while March 2028 remains the furthest announced date for the network.