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Eternal, the parent company of Blinkit and Zomato, reported a consolidated net profit of ₹125 Cr for the second quarter of FY27, up 92% YoY from ₹65 Cr in the previous year quarter. On a sequential basis, profit surged 36% from ₹92 Cr in Q1 FY27. Operating revenue for the quarter zoomed 78% YoY and 19% QoQ to ₹24,138 Cr. Including other income of ₹351 Cr, total income stood at ₹24,489 Cr. Eternal’s adjusted revenue increased 76% YoY and 19% QoQ to ₹24,621 Cr. On a like-for-like (LFL) basis, adjusted revenue grew 58% YoY. The difference reflects Blinkit’s shift towards an inventory-led model, under which revenue includes the full value of goods sold directly to customers rather than only marketplace commissions. The like-for-like calculation excludes the cost of goods sold from Blinkit’s own inventory and Hyperpure’s non-restaurant revenue. Total expenses for the quarter rose 75% YoY to ₹24,166 Cr, while tax expenses came in at ₹198 Cr. Consolidated Adjusted EBITDA almost tripled YoY, surging 197% to ₹666 Cr. However, the company’s cash balance at the end of September dipped by ₹1,813 Cr to ₹16,475 Cr. The decline was driven by seasonal net working capital requirements, including building Blinkit's inventory ahead of the festive season and quarter-end timing in Zomato’s weekly restaurant settlement cycle that temporarily lowered payables. Besides, Eternal’s board also approved exchanging its entire stake in adtech startup AdOnMo for shares in Mygate ahead of a proposed merger between the two startups. Eternal will eventually own around 4.4% of the merged entity, with the holding currently valued at ₹156 Cr. The board also approved transferring the India going-out business housed directly in Eternal to wholly owned subsidiary Zomato Entertainment Pvt Ltd for around ₹130.76 Cr, subject to adjustments, through a slump sale. The business housed in two other subsidiaries will subsequently be consolidated into the same entity to streamline operations. Here’s how Eternal’s key businesses performed during the quarter: Blinkit Accelerates Store Expansion Blinkit remained Eternal’s largest revenue contributor, with operating revenue increasing 94% YoY and 22% QoQ to ₹19,152 Cr. On an LFL basis, revenue grew 84% YoY. The quick commerce business reported a segment profit of ₹488 Cr. Its adjusted EBITDA stood at ₹184 Cr, compared with a ₹156 Cr loss in the year-ago quarter. Blinkit’s net order value (NOV) rose 79.3% YoY and 22.2% QoQ to ₹20,940 Cr. Its adjusted EBITDA margin improved for the sixth consecutive quarter to 0.9% of NOV. The company added 308 net new stores in Q2 FY27, taking its network to 2,751. Eternal now expects Blinkit to cross 3,500 stores by March 2027, raising its earlier target of 3,000, and reach around 5,000 stores by March 2028. CFO Akshant Goyal said the accelerated expansion was supported by improving performance in smaller cities and newer categories, with new stores meeting the company’s margin and payback expectations. Eternal expects Blinkit’s adjusted EBITDA margin to continue improving through the expansion, with profitability gains at mature stores and cities offsetting the initial drag from new outlets. Its mature cities already report adjusted EBITDA margins exceeding 5%, while cities contributing around 70% of NOV are adjusted EBITDA positive. Although annual NOV growth moderated to around 79% owing to a higher base, management expects growth to pick up as new stores open and scale. Blinkit is tracking ahead of its three-year guidance of 60% NOV compound annual growth, but Eternal said it was too early to revise the target upwards. Zomato’s Growth Regains Pace Eternal founder Deepinder Goyal reiterated the company’s long-term expectation of more than 20% annual growth in food delivery, following a recovery over the past two quarters. Zomato’s food delivery NOV increased 21.5% YoY to ₹11,445 Cr. Operating revenue rose 37% YoY to ₹3,396 Cr. Adjusted EBITDA increased 25% YoY to ₹627 Cr, although its margin declined marginally to 5.5% of NOV. Average monthly transacting customers grew 16% YoY to 28 Mn. Goyal attributed part of the previous year’s slowdown to some ordering occasions shifting to quick commerce as the segment expanded. That shift now appears to have stabilised, he said. Recent growth has been driven by more customers ordering food online and placing orders more frequently. A growing share of new users are ordering food online for the first time, including many outside Zomato’s top eight cities. "There is still a lot of headroom. Restaurant food is a small part of how India eats. As cities grow, incomes rise and more young people live away from home, we think the food delivery market can keep compounding at 20%+ for many years," Goyal said. District Retains Breakeven Timeline District’s NOV increased 58% YoY and 1.3% QoQ to ₹3,259 Cr. Operating revenue grew 61% YoY to ₹304 Cr, although it declined 4% sequentially. Its segment loss narrowed to ₹55 Cr from ₹61 Cr in the preceding quarter. Adjusted EBITDA loss remained broadly flat QoQ at ₹64 Cr, while its adjusted EBITDA margin improved to -2% of NOV from -3.1% a year ago. CFO Goyal said District remained on track to achieve adjusted EBITDA breakeven within the four-to-six-quarter timeline outlined in January 2026. Annual NOV growth is running above 50%, ahead of the 30%+ compound annual growth assumption built into its FY30 plan. Eternal retained its FY30 targets of ₹28,000 Cr in NOV and ₹1,400 Cr in adjusted EBITDA. However, management flagged AI agents that transact on consumers’ behalf as a potential longer-term disruption to parts of the business. Eternal said it is building physical infrastructure and operations that could help District deliver a differentiated customer experience. Hyperpure Turns EBITDA Positive Restaurant supplies business Hyperpure reported operating revenue of ₹1,154 Cr, up 13% YoY. On an LFL basis, revenue increased 22.7%. Its segment profit stood at ₹19 Cr, while adjusted EBITDA turned positive at ₹10 Cr, as against a loss of ₹5 Cr a year ago. Hyperpure now serves around 85,000 restaurants, up from 62,000 a year ago. Management said two-hour deliveries, greater adoption of organised procurement, and services such as kitchen setup were supporting growth. Around 25% of its orders are delivered within two hours. The others segment, which includes Bistro and Nugget, reported revenue of ₹132 Cr, up 39% from ₹95 Cr in the preceding quarter. Its adjusted EBITDA loss narrowed to ₹91 Cr from ₹94 Cr sequentially. Shares of Eternal ended Wednesday’s trading session 2.71% lower at ₹311.75.
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