Eternal Q2 Results 2026: Profit Climbs 92.3% YoY

Eternal Limited, the parent of Zomato and Blinkit, reported net profit of Rs 125 crore for the second quarter of FY27, up 92.3% year-on-year from Rs 65 crore. Revenue from operations stood at Rs 3,663 crore for the quarter ended September 30, 2026. The quarterly update drew attention to the company’s execution across food delivery, quick commerce and newer technology initiatives. Blinkit’s planned network expansion remained a central point in management’s discussion with analysts. Eternal also outlined steps to move its going-out business into a separate wholly owned subsidiary.

Key Q2FY27 financial numbers

The company’s net profit increased by Rs 60 crore from the corresponding quarter of the previous financial year. Eternal reported adjusted EBITDA of Rs 666 crore, compared with Rs 224 crore a year earlier. The reported figures indicate a substantial rise in operating profitability on a year-on-year basis. Revenue from operations was reported at Rs 3,663 crore in the Q2FY27 results statement published on October 22, 2026. Management cautioned during the call that forward-looking comments involve risks and uncertainties and are not guarantees of future performance.

Food delivery investment remains elevated

Chief Financial Officer Akshant Goyal said competitive intensity in food delivery was higher in the quarter than in the preceding few quarters. He said Eternal itself had also been investing aggressively in growth, including customer acquisition and increasing order frequency among existing customers. According to Goyal, some of the experiments conducted over recent quarters were delivering good outcomes. The company’s operating approach is to broadly maintain margins while reinvesting where it sees scope to support growth. He said food delivery margins are expected to remain broadly flattish over the next one to two years rather than being managed for quarterly expansion.

Blinkit targets 3,500 stores by March 2027

Quick commerce remained the major expansion priority. Eternal expects Blinkit to cross 3,500 stores by March 2027 and reach about 5,000 stores by March 2028. Management said most incremental stores are likely to be in smaller cities, including Tier 2 and Tier 3 markets. Goyal said the company was seeing strong store-payback outcomes in those locations. Eternal said its experience of the last 12 months, a period of higher competitive intensity and more market participants, had improved its understanding of competitive dynamics and supported a faster infrastructure build-out.

Mature markets continue to add customers

Management said Blinkit was also continuing to grow in larger and more mature cities. It cited new customer acquisition, category additions and a wider assortment as drivers of growth in these markets. According to the call, Blinkit’s monthly transacting users in mature cities are multiple times those of Zomato, with no plateau visible to management. These comments relate to management’s assessment of current operating trends and should not be treated as a guarantee of future growth. The company did not provide a numerical quarterly figure for monthly transacting users in the material provided.

Inventory build reduces cash balance

Eternal’s cash balance declined by Rs 1,813 crore during the quarter to Rs 16,475 crore. The company attributed the reduction mainly to Blinkit’s inventory build ahead of the festive season. Management said approximately 90% to 95% of stock-keeping units are now under the first-party, or 1P, model. Goyal said he did not expect further incremental working-capital change from that shift. The inventory-led movement in cash highlights the working-capital requirements associated with operating a larger quick-commerce network.

District business moves to separate subsidiary

Eternal’s board approved the transfer of its going-out business to Zomato Entertainment Private Limited, a wholly owned subsidiary, on October 21. The business is associated with District, Eternal’s going-out platform. The corporate restructuring separates this activity within the group while keeping it wholly owned by Eternal. The results material did not provide financial details of the proposed transfer. Investors will need to track future company disclosures for operational and financial reporting related to the subsidiary.

Dark.ai is under development

Eternal said it plans to launch Dark.ai, described as a privacy-focused artificial intelligence assistant, globally by the end of 2026. Goyal said the product had been under development for about a year. Its costs are currently booked in the company’s other segment and are not yet meaningful, according to the earnings call. The company’s comments suggest Dark.ai remains an emerging initiative rather than a material contributor to the reported Q2 numbers. No revenue target or launch-market breakdown was provided.

Management’s view on agentic commerce

Eternal said it is currently open to agent traffic and intends to learn and experiment as the market evolves. Management described agentic-commerce adoption in India as close to zero at present. Kunal Swarup said the company was friendly to agent traffic, which remains negligible, and had no plans to block it currently. Goyal added that the company could review its approach later if market conditions changed. Eternal’s stated strategy is built around inventory, stores and delivery networks, which it believes can support Zomato and Blinkit as digital shopping tools develop.

Market impact and outlook

The Q2FY27 update combines stronger reported profit with an expansion-led investment plan. Food delivery competition and customer-acquisition spending are expected to keep margins broadly stable, based on management’s comments. Blinkit’s store target points to a continued focus on network growth, particularly outside the largest cities. The cash-balance reduction also shows that inventory and infrastructure needs remain relevant to the quick-commerce model. Eternal has maintained its FY29 EBITDA guidance of $1 billion, although management declined to provide further commentary because it is still early in the three-year period.

What investors should watch next

Eternal’s reported Q2FY27 performance was led by a rise in net profit to Rs 125 crore and revenue from operations of Rs 3,663 crore. Its next operating milestones include Blinkit’s store additions, food-delivery investment levels and the planned global launch of Dark.ai by the end of 2026. The transfer of the going-out business to Zomato Entertainment Private Limited is another development to monitor through subsequent disclosures. Any future updates on margins, cash use and store paybacks will be relevant as Eternal pursues expansion across its consumer businesses.