Eternal Ltd FY26 Results: Revenue Jumps 168%, PAT Declines Amidst Expansion

Consolidated Revenue: ₹54,364 crore
Consolidated PAT: ₹366 crore

Reader Takeaway: Strong revenue growth in quick commerce; profitability pressured by expansion costs.

What just happened

Eternal Ltd has announced its financial results for FY26, showcasing a substantial increase in consolidated revenue to ₹54,364 crore, up from ₹20,243 crore in FY25. This growth is largely attributed to the quick commerce business's transition to an inventory-led model. The company also reported consolidated Adjusted EBITDA of ₹1,189 crore. However, consolidated Profit After Tax (PAT) declined to ₹366 crore in FY26, compared to ₹527 crore in FY25.

Why this matters

The surge in revenue signals strong market traction and successful execution of its business model shift, particularly in quick commerce. However, the drop in PAT indicates increased operational costs, primarily depreciation and amortization linked to capital expenditure for expansion. Investors will be watching how the company balances growth with profitability.

The backstory

Eternal Ltd has been aggressively expanding its quick commerce operations, increasing its store count to 2,243. The food ordering and delivery segment also saw growth, while Hyperpure supplies experienced a slight dip. The company's Net Order Value (NOV) for quick commerce grew significantly by 117% YoY.

What changes now

The revenue figures reflect a fundamental change in how the company recognizes sales, with the full value of goods sold in quick commerce now reported. Management has laid out an ambitious outlook, projecting a doubling of food delivery NOV in two years and a 60%+ CAGR for quick commerce NOV over three years, targeting $1 billion in consolidated Adjusted EBITDA by FY29.

Risks to watch

Profitability remains a concern, with higher depreciation and amortization costs impacting the bottom line. Intense competition in the quick commerce space could pressure margins. Evolving regulatory landscapes for platform businesses also pose a risk.

Peer comparison

While specific peer data isn't provided in the filing, Eternal Ltd's quick commerce segment has shown substantial growth, indicating a strong competitive position. The food delivery segment also continues to expand, although growth rates are more moderate compared to quick commerce.

Context metrics (time-bound)

• Quick Commerce Stores: 2,243
• Quick Commerce NOV (FY26): ₹48,567 crore (117% YoY growth)
• Food Delivery NOV (FY26): ₹37,993 crore (16% YoY growth)

What to track next

Investors should closely monitor the company's ability to achieve its ambitious EBITDA targets, manage expansion costs effectively, and navigate the competitive and regulatory environment in the quick commerce sector.