Eternal Q2 FY26 Results: Revenue Jumps 183% to ₹13,590 Crore; Net Profit Falls 63% Amid Rising Costs
📊 Overview
Eternal (the parent company of Zomato, Blinkit, and other digital ventures) has announced its Q2 FY2025-26 results, delivering a record-breaking revenue surge but a sharp decline in net profit. The company’s rapid expansion across food delivery, quick commerce, and digital payments has fueled growth — yet high operational costs are weighing heavily on margins.
💰 Eternal Q2 FY26 Key Financial Performance
| Financial Metric | Q2 FY26 (₹ crore) | Q2 FY25 (₹ crore) | YoY Change (%) | Remarks |
|---|---|---|---|---|
| Revenue from Operations | 13,590 | 4,799 | +183% | Massive jump driven by Blinkit and food delivery growth |
| Total Expenses | 13,813 | 4,855 | +189% | Rising costs outpaced revenue growth |
| Net Profit (PAT) | 65 | 176 | -63% | Sharp fall due to high operating and marketing costs |
| EBITDA | 239 | 226 | +5.8% | Marginal rise despite soaring topline |
| EBITDA Margin | ~1.8% | ~4.7% | — | Margin compression shows cost pressure |
Source: Moneycontrol & NDTV Profit corporate earnings tracker (October 2025)
🔍 Detailed Financial Analysis
1. Revenue Explosion Driven by Blinkit & Food Delivery
Eternal’s revenue skyrocketed 183% YoY to ₹13,590 crore, primarily fueled by Blinkit’s strong traction in the quick-commerce segment and solid growth from the Zomato delivery platform. This surge underlines the company’s ability to scale its ecosystem rapidly.
2. Profit Under Pressure from Rising Expenses
Despite the massive revenue growth, net profit dropped to ₹65 crore, a 63% decline from last year. The key reason — high logistics costs, marketing spends, and infrastructure expansion. Eternal’s cost base is growing faster than its revenue, putting pressure on margins.
3. EBITDA Margin Erosion Signals Growing Pains
The EBITDA margin fell from ~4.7% to just ~1.8%. While EBITDA improved marginally in absolute terms, it failed to keep pace with expenses. This indicates that the incremental revenue isn’t translating efficiently into profits yet — a common phase for rapidly scaling tech-driven companies.
4. Aggressive Expansion Continues
Eternal continues to pour investments into expanding Blinkit’s dark stores, food logistics networks, and payment infrastructure. These moves may hurt near-term profitability but aim to cement long-term dominance across India’s urban consumption ecosystem.
5. Investor Outlook: Growth Story Intact
Investors might view this quarter as a short-term profitability pause amid a long-term growth trajectory. With India’s digital commerce and food delivery sectors expected to expand by double digits, Eternal’s diversified presence could help it sustain momentum once costs stabilize.
💡 Expert Take
“Eternal’s Q2 FY26 numbers highlight the classic tradeoff between growth and profitability. The company’s revenue surge shows strong demand, but rising costs underline the importance of scaling efficiently,” said a market analyst tracking Indian tech earnings.
📈 Key Takeaways
Eternal Q2 FY26 revenue: ₹13,590 crore (+183% YoY)
Net profit: ₹65 crore (down 63% YoY)
Expenses outpaced income growth
EBITDA margin slipped to 1.8%
Long-term growth trajectory remains positive
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