Eternal Ltd reported a net profit of ₹92 crore for Q1 FY27, missing analyst estimates of ₹335 crore. Despite this, the company achieved a strong revenue of ₹20,211 crore, surpassing forecasts by growing 17% sequentially. Investors are now focused on how the company plans to improve its net profitability while maintaining strong top-line growth.
Detailed Coverage
Eternal Ltd, the parent company of food delivery platform Zomato, released its financial results for the first quarter of the 2027 fiscal year on Wednesday. The company reported a consolidated net profit of ₹92 crore, which fell significantly short of the ₹335 crore projection estimated by analysts. This represents a 47 percent decline compared to the ₹174 crore profit recorded in the previous quarter.
While net profit disappointed, the company’s revenue growth remained a notable point for the quarter. Consolidated revenue climbed to ₹20,211 crore, outperforming the Street’s forecast of ₹19,850 crore. This result also marked a 17 percent increase compared to the ₹17,292 crore reported in the preceding quarter.
Operational Performance and Margins
The company’s operating performance, measured by Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), showed growth during the period. EBITDA rose to ₹594 crore, a 22 percent increase from the ₹486 crore reported in the prior quarter. Reflecting this, the EBITDA margin experienced a minor improvement, rising to 2.9 percent from 2.8 percent in the previous quarter.
The divergence between rising revenue and lower net profit highlights the impact of expenses on the company's bottom line. For shareholders, the key monitorable will be whether the company can achieve better cost management in future quarters to ensure that revenue gains translate into higher net earnings. The narrow margin of 2.9 percent indicates that the business operates on a thin buffer, meaning any change in operating costs or delivery expenses can significantly sway the final profit figures.
Investors will likely track management commentary in the coming days to understand the specific factors that led to the profit miss, such as potential increases in marketing spending, employee costs, or investments in new business segments. Future quarters will also reveal whether the current revenue momentum is sustainable or if the company faces demand-side pressures in the competitive food delivery and quick-commerce space.