Eternal Q2 profit jumps 92% to Rs 125 crore; Blinkit turns profitable
Representative image: Surprising_Media / Pixabay
Zomato parent Eternal's Q2 FY27 profit rose 92% to Rs 125 crore and revenue 78% on October 21, 2026, led by Blinkit, but missed estimates; shares fell 3.5%.
What Happened
Eternal Ltd, the parent of food delivery app Zomato and quick-commerce service Blinkit, reported on Wednesday, October 21, 2026 that its consolidated net profit for the July to September quarter rose about 92% to Rs 125 crore from Rs 65 crore a year earlier. Revenue from operations rose about 78% to Rs 24,138 crore, driven by Blinkit. The profit, however, was below analysts' estimates, and Eternal shares fell about 3.5% after the results.
Key Facts
- Net profit: Rs 125 crore in Q2 FY27, up 92.3% from Rs 65 crore; estimates cited in reports ranged from about Rs 250 crore to Rs 274 crore.
- Revenue: Rs 24,138 crore, up 77.6% from Rs 13,590 crore.
- Blinkit: revenue of Rs 19,152 crore; net order value up 79.3% year on year; 308 new stores in the quarter, taking the total to 2,751.
- Blinkit profitability: adjusted EBITDA of 0.9% of net order value, about Rs 184 crore, against a loss of Rs 156 crore a year earlier.
- District: the going-out business recorded net order value of Rs 3,259 crore, up 58%, according to reports of the shareholder letter.
- Group EBITDA: Rs 752 crore, a margin of 3.1%; total expenses rose to Rs 24,166 crore from Rs 13,813 crore.
- Stock: shares fell about 3.4% to 3.5% on the BSE after the results.
Why It Matters
Eternal's results show how much India's consumer internet business has shifted towards quick commerce, the delivery of groceries and household goods within minutes from small neighbourhood warehouses called dark stores. Blinkit now brings in close to four-fifths of the group's revenue. Its sales grow fast because the company keeps opening stores, more than 300 in a single quarter, and because customers order more often.
The important change this year is that Blinkit has turned profitable on an adjusted EBITDA basis, a measure of operating profit before interest, tax, depreciation and some one-off items. A year ago it was losing money. That matters because quick commerce needs heavy upfront spending on stores, staff and stock, and investors have questioned whether it can ever earn money. A small positive margin suggests the model can work at scale, though the margin is thin.
Why did the shares fall? Profit, while nearly double, came in at about half of what analysts expected. Expenses grew almost as fast as revenue, including higher advertising and promotion costs, which rose about 41% to Rs 1,138 crore according to one report. Investors are rewarding growth only when it comes with improving profit.
The results also matter beyond the company. Quick commerce employs large numbers of delivery partners and store workers in Indian cities and towns, and its growth affects neighbourhood grocery shops and consumer brands that sell through these platforms. In its letter to shareholders, Eternal's leadership also discussed the risk that AI agents could bypass apps like its District ticketing and dining service, and plans to launch a privacy-focused AI platform called Dark.AI globally by the end of 2026.
| Measure | Q2 FY27 | Q2 FY26 |
|---|---|---|
| Revenue from operations | Rs 24,138 crore | Rs 13,590 crore |
| Net profit | Rs 125 crore | Rs 65 crore |
| Blinkit adjusted EBITDA | About Rs 184 crore | Loss of Rs 156 crore |
Impact
Short-term: The share price fall reflects disappointment with profit relative to estimates. Analysts will focus on whether expense growth slows as Blinkit matures.
Long-term: If Blinkit keeps adding stores while improving margins, quick commerce could become the main way urban Indians buy daily goods, reshaping retail and the jobs linked to it.
Who is affected: Eternal shareholders, Zomato and Blinkit customers, delivery partners and dark-store workers, neighbourhood retailers, and consumer brands that depend on quick-commerce platforms. This report is not investment advice.
Key Takeaway
Eternal's Q2 FY27 profit rose 92% to Rs 125 crore and revenue 78% to Rs 24,138 crore on October 21, 2026, led by a now-profitable Blinkit, but the profit missed estimates and the shares fell about 3.5%.
Questions and Answers
What were Eternal's Q2 FY27 results?
On October 21, 2026, Eternal reported a consolidated net profit of Rs 125 crore, up 92% from Rs 65 crore, and revenue from operations of Rs 24,138 crore, up 78%, for the quarter ended September 30, 2026.
Why did Eternal shares fall after Q2 results?
Although profit nearly doubled, it was well below analysts' estimates of about Rs 250 crore to Rs 274 crore, and expenses rose almost as fast as revenue. Shares fell about 3.5% after the results.
Is Blinkit profitable now?
On an adjusted EBITDA basis, yes. Blinkit's adjusted EBITDA was about Rs 184 crore, or 0.9% of net order value, in Q2 FY27, compared with a loss of Rs 156 crore a year earlier.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
Sourced and fact-checked by the Peepals Global Editorial Team
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