Eternal reported a net profit of ₹92 crore for the June quarter, up from ₹25 crore a year ago. Revenue surged 182% to ₹20,211 crore, supported by strong food delivery growth and the expansion of its quick commerce arm, Blinkit. Investors are monitoring whether the company can maintain these margins as it continues to open new stores.
Detailed Coverage
Eternal, the food delivery and quick commerce company, reported a consolidated net profit of ₹92 crore for the first quarter of the 2026-27 financial year. This is a sharp rise from the ₹25 crore profit reported in the same period last year. The company’s revenue from operations reached ₹20,211 crore, marking a 182% increase compared to the previous year. This performance has drawn attention to the company’s ability to scale both its core food delivery service and its quick commerce segment simultaneously.
The food delivery business remains a core pillar, with revenue growing by 33.1% to ₹3,537 crore. The net order value for this segment reached ₹10,769 crore, a 20.1% increase over the same quarter last year. The company reported an adjusted operating profit margin of 5.6% for this segment, with the absolute operating profit rising by 155% to ₹606 crore. Additionally, the number of monthly transacting customers grew to 27.2 million, indicating a consistent user base expansion.
Quick Commerce Expansion
Blinkit, the company's quick commerce subsidiary, continues to be a major area of focus for growth. During the quarter, the company added 200 new stores, bringing the total network to 2,443 locations. Management has highlighted that the competitive environment in the quick commerce space has shown signs of stabilization. A key revenue stream for this segment has been advertising, which management believes could contribute significantly to operating profits by the 2027-28 financial year.
While the company is reporting growth in both segments, investors should remain aware of the risks inherent in the quick commerce business. These include the costs associated with rapid store expansion and the ongoing need to manage delivery logistics efficiently to maintain profit margins. The quick commerce sector is also highly competitive, and any change in pricing strategy by rivals could influence future profitability.
Unlike traditional retail, the quick commerce model relies on high transaction volumes and efficient inventory turnover. As the company continues to add stores, the ability to manage operational costs and maintain delivery timelines will be critical for long-term stability. Investors will likely track the company's progress on its store expansion targets and the trend in advertising revenue from the Blinkit platform in the coming quarters.