Eternal, the parent company of Zomato and Blinkit, reported significant growth in net profit during the second quarter of fiscal year 2027. The company's profit increased by 92.3% compared to the same period last year, while revenue grew by 78% year-over-year. Nevertheless, the results were below analysts' forecasts, who expected a net profit of 250 crore rupees.
Eternal's net profit for the second quarter of fiscal year 2027 amounted to 125 crore rupees, which is higher than the 65 crore rupees recorded in the same period a year earlier. Revenue reached 24,138 crore rupees compared to 13,590 crore rupees in the corresponding quarter of the previous fiscal year.
The quick commerce segment, Blinkit, remained a key source of income, generating revenue of 19,152 crore rupees in the second quarter of fiscal year 2027. According to Eternal's data, Blinkit's average order value (NOV) grew by 79.3% year-over-year. The platform added 308 new stores, bringing the total number of stores to 2,751.
Blinkit's adjusted EBITDA improved for the sixth consecutive quarter, reaching 0.9% of NOV, equivalent to a profit of 184 crore rupees, whereas the loss a year earlier was 156 crore rupees. Eternal forecasts that Blinkit's store count will exceed 3,500 by March 2027 and potentially reach 5,000 by March 2028.
Albinder Singh Dhindsa, CEO of Eternal Group, noted that in the quick commerce business, not only the growth rate but also the quality of that growth is important. He emphasized that each store has limited capacity, and customers coming only for deep discounts use the same capacity as those ordering weekly from different categories. He added that attracting customers through price reductions might be faster, but such buyers often leave after the discounts end.
Regarding the food delivery business, Zomato demonstrated a 21.5% year-over-year increase in NOV, and the company stated that the acceleration of growth has continued for the fifth consecutive quarter. Eternal's founder, Dipinder Goyal, commented on the situation in the food delivery segment, expressing satisfaction with the current state of the business. However, he clarified that they try not to draw hasty conclusions based on a single quarter. His long-term expectation for food delivery has always been over 20% annual growth, and the last two quarters have brought the company back into this range. He also noted that this view has not changed either last year when growth slowed down or now when growth has resumed.
