Eternal Q2 FY27: net profit up 92% to ₹125 crore, income up 76%
Earnings
Retailing
Blacklitt Research6 min read
Eternal (NSE: ETERNAL) reported consolidated net profit of ₹125 crore for the quarter ended 30 Sep 2026, up 92.3% from ₹65 crore a year earlier, on total income of ₹24,489 crore, up 75.6% from ₹13,942 crore. Standalone net profit was ₹641 crore, down 7.2% from ₹691 crore, on total income of ₹4,298 crore, up 39.3% from ₹3,086 crore.
Key highlights
Consolidated
Including its subsidiaries
Total income: ₹24,489 crore, up 75.6% from ₹13,942 crore a year earlier.
Net profit: ₹125 crore, up 92.3% from ₹65 crore; up from ₹92 crore in the June quarter.
EPS: ₹0.14 basic, against ₹0.07 a year earlier.
Tax as share of profit before tax: 61.3%, against 49.6% a year earlier.
Standalone
The company on its own, without its subsidiaries
Total income: ₹4,298 crore, up 39.3% from ₹3,086 crore.
Net profit: ₹641 crore, down 7.2% from ₹691 crore.
EPS: ₹0.70, against ₹0.76 a year earlier.
Tax as share of profit before tax: 25.0%, against 10.4% a year earlier.
Summary
Consolidated ₹ crore
Particulars
Q2 FY27
Q2 FY26
YoY
Q1 FY27
QoQ
24,489
13,942
+75.6%
20,586
+19.0%
Revenue from operations
24,138
13,590
+77.6%
20,211
+19.4%
Other income
351
352
-0.3%
375
-6.4%
125
65
+92.3%
92
+35.9%
Finance costs
155
86
+80.2%
151
+2.6%
Depreciation
625
376
+66.2%
546
+14.5%
Tax expense
198
64
+209.4%
180
+10.0%
Net profit margin
0.51%
0.47%
+0.04 pp
0.45%
+0.06 pp
Tax as share of profit before tax
61.3%
49.6%
+11.7 pp
66.2%
-4.9 pp
EPS (₹)
0.14
0.07
+100.0%
0.10
+40.0%
Figures are in ₹ crore except EPS; YoY compares with Q2 FY26 and QoQ with Q1 FY27.
Consolidated net profit grew faster than income. Total income rose 75.6% and net profit rose 92.3%, which lifted the net profit margin to 0.51% from 0.47% a year earlier. Revenue from operations was ₹24,138 crore, after other income of ₹351 crore.
Quick commerce accounted for most of the rise in income. The segment's revenue from operations was ₹19,152 crore, against ₹9,891 crore in the year-ago quarter. The filing says the segment now includes direct sales on the Blinkit platform, not only marketplace commission, after the group began moving from a marketplace model to a mix of marketplace and inventory-led model in the quarter ended 30 Jun 2025.
Tax took a larger share of profit. Tax expense of ₹198 crore was 61.3% of profit before tax of ₹323 crore, against 49.6% a year earlier. The year-ago quarter included a deferred tax credit of ₹16 crore. The filing reports no exceptional items in either quarter and does not explain the higher tax share.
On the balance sheet, consolidated cash and cash equivalents fell to ₹467 crore at 30 Sep 2026 from ₹996 crore at 31 Mar 2026, and bank balances other than cash fell to ₹80 crore from ₹527 crore. Total assets rose to ₹45,109 crore from ₹40,736 crore. The consolidated cash flow statement covers the half year and shows a net decrease of ₹531 crore in cash and cash equivalents.
Standalone ₹ crore
Particulars
Q2 FY27
Q2 FY26
YoY
Q1 FY27
QoQ
4,298
3,086
+39.3%
3,951
+8.8%
Revenue from operations
3,663
2,650
+38.2%
3,349
+9.4%
Other income
635
436
+45.6%
602
+5.5%
641
691
-7.2%
585
+9.6%
Finance costs
14
6
+133.3%
20
-30.0%
Depreciation
61
49
+24.5%
60
+1.7%
Tax expense
214
80
+167.5%
195
+9.7%
Net profit margin
14.91%
22.39%
-7.48 pp
14.81%
+0.11 pp
Tax as share of profit before tax
25.0%
10.4%
+14.7 pp
25.0%
+0.0 pp
EPS (₹)
0.70
0.76
-7.9%
0.64
+9.4%
Figures are in ₹ crore except EPS; YoY compares with Q2 FY26 and QoQ with Q1 FY27.
Standalone net profit fell because total expenses rose faster than income. Expenses were ₹3,443 crore, up 48.7%, against total income growth of 39.3%. Advertisement and sales promotion costs were ₹862 crore against ₹464 crore, and delivery and related charges were ₹1,527 crore against ₹1,128 crore. The filing does not explain the rise in these costs.
Other income rose to ₹635 crore from ₹436 crore. Tax expense of ₹214 crore was 25.0% of profit before tax, against 10.4% a year earlier, when tax was ₹80 crore. The standalone net profit margin was 14.91%, against 22.39%, a fall of 7.48 pp.
Standalone net cash from operating activities was ₹2,442 crore for the half year ended 30 Sep 2026, against capital spending of ₹83 crore on property, plant and equipment and intangibles. Standalone cash and cash equivalents fell to ₹255 crore from ₹706 crore at 31 Mar 2026. Net cash used in investing activities was ₹2,804 crore, including ₹3,040 crore of loans to subsidiaries, partly offset by ₹525 crore repaid by them.
The company says it reviewed the performance and plans of five subsidiaries and concluded that no impairment is required at 30 Sep 2026. It has also committed to support them if they cannot meet their liabilities.
Deloitte Haskins & Sells, the statutory auditor, issued limited review reports on both the consolidated and standalone results without modifying its conclusion. Both reports draw attention to GST orders and show-cause notices on delivery charges: orders of ₹420 crore for October 2019 to March 2022 across all states, ₹14 crore for Andhra Pradesh for April 2022 to March 2024, and show-cause notices of ₹119 crore for April 2022 to March 2023. The company says it has a "strong case on merits" and is contesting them. The consolidated review also notes that 17 subsidiaries and one trust were not reviewed by their auditors.
The filing does not report a dividend.
The same board meeting approved a business transfer agreement under which Eternal will transfer its Going-out India business by slump sale to its wholly owned subsidiary Zomato Entertainment Private Limited, for cash consideration of about ₹130.76 crore. It also approved a share swap in which Eternal gives its Adonmo shares to Mygate for Mygate shares valued at about ₹156 crore. After a proposed Adonmo and Mygate merger, Eternal expects to hold about 4.4% of the merged entity on a fully diluted basis.
What the results mean for shareholders
Consolidated EPS was ₹0.14, up from ₹0.07 a year earlier and ₹0.10 in the June quarter, on paid-up capital of ₹921 crore at ₹1 face value. Standalone EPS was ₹0.70, down from ₹0.76. The consolidated total comprehensive loss of ₹311 crore reflects other comprehensive losses of ₹436 crore, mainly ₹323 crore on equity instruments and ₹154 crore on debt instruments, both through other comprehensive income.
The filing does not say what the instruments behind those losses are, how the GST matter will be resolved, or the value of the Mygate stake after the proposed merger. The Going-out business transfer is expected to complete within 30 days of the agreement, and the Mygate share swap is to complete on or before 5 Dec 2026.
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