Eternal (ETERNAL) Q2 24/25 earnings summary

Executive summary

• Quick commerce business is growing rapidly at over 120%-130% year-on-year, expanding into new cities beyond Delhi NCR and now contributing less than 40% of business share.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024.

• Board has passed an enabling resolution to raise up to $1 billion (₹8,500 crore) via QIP, subject to shareholder and regulatory approvals.

• Acquired 100% of Orbgen Technologies and Wasteland Entertainment for ₹2,014 crore, expanding into movies ticketing and events.

• Subscribed to a minority stake (~8%) in Byondnxt Smart Home Pvt Ltd for ₹6,000, supporting a new kitchen appliance venture.

Financial highlights

• Consolidated revenue from operations for Q2 FY25 was ₹4,799 crore, up from ₹2,848 crore in Q2 FY24.

• Consolidated net profit for Q2 FY25 was ₹176 crore, compared to ₹36 crore in Q2 FY24.

• CapEx increased to INR 214 crores, mainly due to opening 152 new stores and 7 warehouses in the quarter.

• Fixed costs have risen due to wage hikes, ad spend, and growth in high-growth segments like quick commerce and dining out.

• Cash and cash equivalents increased to ₹375 crore as of September 30, 2024.

Outlook and guidance

• Expansion to 1,000 stores by March 2025 and 2,000 by December 2026 is on track, though store openings may be lumpy due to external dependencies.

• No plans to increase discounting despite industry capital raises; fundraise is to strengthen the balance sheet, not for aggressive pricing.

• EBITDA margin guidance for quick commerce remains at 4%-5% as business matures.

• Recent acquisitions in entertainment and events are expected to diversify revenue streams.

• Fundraising via QIP aims to support future growth and strategic investments.