Eternal (ETERNAL) Q1 25/26 earnings summary

Executive summary

• Quick commerce segment showed robust growth, with most gains from existing service areas rather than new city expansion.

• Mature markets like Delhi saw 70% year-over-year growth, indicating strong performance even in well-penetrated regions.

• Food delivery growth has rebounded after a period of stagnation, with expectations for continued momentum.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, reviewed by Deloitte Haskins & Sells.

• Incorporation of wholly owned subsidiary Blinkit Foods Limited approved.

Financial highlights

• Consolidated revenue from operations rose to INR 7,167 crores, up from INR 4,206 crores year-over-year and INR 5,833 crores sequentially.

• Quick commerce revenue: INR 2,400 crores (up from INR 942 crores year-over-year).

• Margins in quick commerce improved from -2.4% to -1.8% this quarter, with some mature business segments already at 2.5% margin.

• Contribution margin in quick commerce was 3.9% this quarter, compared to 4.9% last year.

• Consolidated profit for the quarter was INR 25 crores, compared to INR 253 crores in the same quarter last year and INR 39 crores in the previous quarter.

Outlook and guidance

• Most of the quick commerce business is expected to move to inventory ownership (1P) within two to three quarters, with margin benefits accruing in the same period.

• Transition in quick commerce segment from marketplace to a combination of marketplace and inventory-led model expected to increase direct sales revenue and reduce B2B segment revenue.

• Growth momentum in quick commerce is expected to remain strong for at least the next two years as infrastructure expands toward 3,000 stores.

• Food delivery margins may remain stable in the near term as the focus shifts to growth, with long-term potential for margin expansion.

• No specific break-even timeline for quick commerce provided, as it depends on expansion pace and competitive dynamics.