Eternal Q1FY27 results: Profit up 268%, revenue +182%

Key takeaway from the quarterly print

Eternal, the parent company of Zomato, reported a strong year-on-year jump in profitability for Q1FY27, even as profit fell sequentially from the previous quarter. The company disclosed a 268% YoY rise in consolidated profit to ₹92 crore for the April to June quarter (Q1FY27). Consolidated revenue from operations rose 182% YoY to ₹20,211 crore. On a quarter-on-quarter basis, profit declined 47.1%, according to the information provided. The update comes at a time when investors are tracking how fast quick commerce can scale while keeping a close watch on margins and capital intensity.

Q1FY27 headline numbers: profit and revenue

The most notable figure in the release was the jump in consolidated profit to ₹92 crore in Q1FY27, up 268% YoY. The company also reported a sharp rise in consolidated revenue from operations to ₹20,211 crore, up 182% YoY. The document also flags that profit dropped 47.1% QoQ, highlighting that sequential performance remained volatile even with strong YoY growth. Beyond the quarter, the text also references FY2025 performance, stating consolidated revenues of ₹20,243 crore and net income of ₹527 crore by the end of FY2025.

Stock and valuation snapshot shown in the document

The provided material includes more than one market snapshot, which appears to be taken from different screens or time-stamps. One snapshot shows a price of ₹255 with market cap at ₹2.4L Cr and a P/E ratio of 651.4. Another snapshot shows a current price of ₹287 with market cap of ₹2,76,579 crore, stock P/E of 756, and a 52-week high/low of ₹368/₹213. These values are presented below as they appear in the text.

Quick commerce guidance: 60%+ CAGR target

A central theme in the earnings summary is management’s focus on quick commerce (QC) scale-up. The company maintained medium-term guidance of 60%+ CAGR in quick commerce growth over the next three years. The growth levers mentioned include assortment expansion, geographic expansion, and demand densification in existing cities. The document also notes diversification into tier 2 and tier 3 cities as part of geographic growth. Management indicated it remains confident of continued growth despite intense competition, with an emphasis on “quality and healthy growth” rather than pursuing short-term market share gains.

Store expansion plan and flexibility on additions

On capacity buildout, the company indicated no specific store addition guidance beyond its current plan for 3,000 stores by March (the text also references “by March FY27” in another line). The stated approach is to keep store expansion “reasonable” and flexible, depending on market response. This is positioned as a way to support both geographic and assortment expansion without locking into rigid timelines. The summary also points to evolving market conditions as a reason management avoided giving a fixed “pecking order” for drivers like user growth, frequency, and average order value.

Food delivery outlook: steady growth and ROI focus

For food delivery, the company expects steady growth at around 19-20%, with “good ROI on growth investments,” as per the provided transcript summary. The commentary suggests an investment approach that prioritises return metrics rather than only headline growth. In addition, the company’s margin narrative places more weight on absolute profit growth instead of margin percentages. It also indicates plans to reinvest incremental margin to fuel growth over the short to medium term.

Margin expectations and EBITDA guidance through FY29

The document provides a margin range for quick commerce, with QC margins forecast around 3-6%. It also notes that there are “no fixed assumptions” yet on the contribution from advertising revenue. On consolidated profitability ambitions, the company targets approximately $1 billion EBITDA by FY29 across businesses. Separately, another passage states that management aims to double its NOV to about $10 billion by FY28 and take adjusted EBITDA to about $1 billion by FY29 (from about $156 million in FY26). These targets underline that scale and operating leverage remain central to the company’s medium-term plan.

Automation and capex: ROCE-led approach

The company is increasing automation in warehouses over the next few years and is testing scalable automation solutions. However, the guidance emphasises that automation capex will be pursued only if it meets clear ROCE criteria. The text explicitly notes there is no intention to invest in automation “for its own sake,” and that investments must show visible returns. It also states no specific capex breakup or detailed automation-related capex guidance is provided beyond store additions, and that overall capex plans remain flexible.

What is not indicated: fundraising and orderbook data

The material explicitly states there is no specific mention of any current or planned fundraising through debt or equity in the provided transcript. It also notes the pages do not contain specific information related to the current or expected orderbook or pending orders. The discussion is described as being centred on growth, profitability, capex plans, margins, competition, advertising, automation, store additions, and operating discipline.

Company context: Eternal’s background and ownership details

The document describes Eternal Limited as formerly known as Zomato Limited and identifies it as an Indian multinational technology company and consumer-services holding company based in Gurugram, Haryana. It includes an ownership snapshot listing Info Edge (12.38%) and Deepinder Goyal (3.83%). It also provides a total equity figure of ₹30,317 crore for 2025. These details help frame how investors may interpret guidance on capital allocation, reinvestment, and medium-term profitability.

Conclusion

Eternal’s Q1FY27 update combines a sharp YoY improvement in profit and revenue with a clear reiteration of quick commerce growth ambitions and medium-term profitability targets. At the same time, the sequential drop in profit and the continued focus on reinvesting margins underline that earnings can remain uneven quarter to quarter. The next checkpoints for investors will be how the company executes its expansion plans up to the 3,000-store target by March, and how it tracks toward its QC growth, margin, and FY29 EBITDA guidance.