Eternal Ltd, the parent company of food delivery platform Zomato and quick commerce business Blinkit, reported a sharp increase in profitability for the September quarter of FY27, even as its expenses continued to climb amid expansion across its businesses.
The Gurugram-based company posted a consolidated profit after tax (PAT) of Rs 125 crore in the second quarter of financial year 2026-27 (Q2 FY27), marking a 92% year-on-year (YoY) increase from Rs 65 crore reported in the corresponding quarter last year. The latest profit figure also represents an improvement over the Rs 92 crore net profit recorded in the preceding quarter.
Eternal’s financial performance comes as competition intensifies in India’s online food delivery and quick commerce markets, where companies are investing heavily in delivery infrastructure, customer acquisition and faster fulfilment to strengthen their positions.
Credits: The Economic Times
Eternal Revenue Rises 78% to Rs 24,138 Crore
Eternal’s revenue from operations surged 78% YoY to Rs 24,138 crore in Q2 FY27, compared with Rs 13,590 crore in the same period last year. Sequentially, revenue increased from Rs 20,211 crore in the June quarter, reflecting continued growth in the company’s operations.
The expansion highlights the scale of Eternal’s business across food delivery and quick commerce. While Zomato remains a major player in India’s online food ordering market, Blinkit’s rapid delivery model has become an important part of the group’s growth strategy.
Quick commerce companies have been expanding their networks of dark stores and broadening product offerings to cater to consumers seeking groceries, household essentials and other products delivered within short timeframes. This growth, however, also requires substantial spending on logistics, infrastructure and operational capacity.
Eternal’s latest revenue figures underline the growing scale of its business, although sustaining profitability alongside such rapid expansion remains an important challenge.
Expenses Climb 75% Amid Business Expansion
The company’s total expenses rose 75% YoY to Rs 24,166 crore in the quarter ended September, compared with Rs 13,813 crore a year earlier. Expenses also increased from Rs 20,314 crore in the previous quarter.
The rise in expenditure broadly accompanied the expansion in revenue, reflecting the costs associated with operating and growing a large consumer-facing business. Investments in delivery networks, fulfilment infrastructure and other operational requirements can weigh on near-term earnings even as they support future growth.
Notably, Eternal’s reported total expenses exceeded its revenue from operations during the quarter. The company nevertheless recorded a net profit of Rs 125 crore, indicating that its overall earnings also reflect income and expenses beyond the two headline operating figures.
The balance between growth and cost management will remain significant as Eternal navigates a competitive market. Food delivery platforms face pressure to retain customers and restaurant partners, while quick commerce operators must balance delivery speed, product availability and operating costs.
Eternal Shares Fall 3.39% on BSE
Despite reporting higher quarterly profit and revenue, Eternal’s shares were trading lower on October 21. The stock declined 3.39% to Rs 309.60 apiece on the Bombay Stock Exchange (BSE).
The market movement came on the day of the company’s quarterly results. However, the available figures alone do not establish the specific reason behind the decline, which may also reflect investor expectations, broader market conditions or concerns about future profitability.
For investors, the results present a mixed picture. Revenue growth remained strong, and net profit improved both year-on-year and sequentially. At the same time, the continued increase in expenses highlights the importance of maintaining operating efficiency as the company scales its businesses.
Credits: Upstox
What Eternal’s Q2 FY27 Results Mean
Eternal rebranded itself from Zomato to Eternal in March 2025, reflecting a corporate identity encompassing its expanding portfolio of businesses rather than food delivery alone.
Its September-quarter performance demonstrates the scale of growth across its operations, with revenue increasing substantially and profit nearly doubling from the year-ago period. However, the increase in expenses and the day’s share-price decline show that strong headline growth does not automatically translate into a positive market response.
Going forward, investors will watch whether Eternal can sustain revenue momentum while improving margins and controlling costs. Its ability to convert growth in food delivery and quick commerce into consistent earnings could prove crucial to its financial performance in the coming quarters.
For now, Eternal’s Q2 FY27 results highlight both the opportunities presented by India’s expanding digital commerce market and the challenge of turning rapid expansion into durable profitability.
