Eternal reported a 268% year-on-year jump in net profit to ₹92 crore for Q1 FY27, driven by massive revenue growth. The company is shifting its performance tracking to Net Owner Value (NOV) as its quick-commerce and food delivery segments show improved margins.
Detailed Coverage
Eternal, the food delivery and quick-commerce company, posted strong growth in its first-quarter results for the financial year 2027. The company's consolidated net profit rose to ₹92 crore, a 268% increase compared to the ₹25 crore reported in the same period last year. Revenue from operations also saw a sharp climb, reaching ₹20,211 crore.
Segment Performance and Strategic Shift
A key highlight of the results is the company’s decision to move away from reporting Gross Order Value (GOV), choosing instead to focus on Net Owner Value (NOV). This shift is intended to provide a clearer picture of the actual value generated by its core operations. In its primary food delivery business, NOV growth exceeded 20% year-on-year, marking the fourth straight quarter of growth. The segment's adjusted EBITDA margin reached 5.6% of NOV, contributing ₹606 crore to the company's total earnings.
Blinkit Quick-Commerce Turnaround
The company’s quick-commerce arm, Blinkit, has shown a significant turnaround. Its NOV grew by 86% year-on-year to ₹17,132 crore. During this period, the company expanded its footprint by adding 200 new stores, bringing the total to 2,443. Notably, Blinkit achieved an adjusted EBITDA of ₹102 crore, a major improvement from the ₹162 crore loss it recorded in the same quarter last year.
Other Business Segments
The company’s 'Going-out' segment, now rebranded as District, reported a 60% year-on-year growth in NOV to ₹3,218 crore, though it still incurred an adjusted EBITDA loss of ₹65 crore. Meanwhile, the Hyperpure business, which focuses on ingredient supplies, grew its revenue by 27% year-on-year to ₹1,034 crore and recorded an adjusted EBITDA of ₹6 crore. Conversely, newer ventures like Bistro and Nugget continue to see rising costs, with adjusted EBITDA losses widening to ₹94 crore as the company invests in scaling these projects.
Market Reaction
Investors reacted positively to the financial updates. Despite some volatility during trading hours, Eternal shares closed 1% higher at ₹289.55 on the BSE.
As the company continues its rapid expansion, investors will likely track the profitability of its newer initiatives like Bistro and Nugget, as well as whether it can maintain the current margin improvements in its established quick-commerce and food delivery businesses. Managing the balance between scaling these new segments and sustaining overall profit growth will be a primary focus in coming quarters.