Eternal (ETERNAL) Q3 24/25 earnings summary

Executive summary

• Quick commerce expansion accelerated, with over 300 new stores added in the last 4-5 months, reaching the 2,000-store milestone ahead of schedule.

• Consolidated revenue from operations for the quarter ended December 31, 2024, was ₹5,405 crore, up from ₹3,288 crore in the same quarter last year, reflecting strong growth across business segments.

• Net profit for the quarter was ₹59 crore, compared to ₹138 crore in the same quarter last year; total comprehensive income for the quarter was ₹39 crore.

• Food delivery experienced a broad-based slowdown, attributed to macroeconomic factors and seasonality, with no material impact from competitive 10-minute delivery initiatives.

• Major acquisitions of Orbgen Technologies and Wasteland Entertainment were completed, expanding the entertainment and ticketing business.

Financial highlights

• Average order value (AOV) in quick commerce exceeded ₹700 in OND quarter, driven by festival season and higher-value electronics, but not expected to be a secular trend.

• Contribution margin for top mature stores stands at 6.4%, with room for further improvement as scale and sourcing margins increase.

• Total income for the quarter was ₹5,657 crore, with total expenses at ₹5,533 crore.

• Standalone revenue for the quarter was ₹2,226 crore, with net profit at ₹494 crore.

• Marketing costs increased, especially in the latter half of the quarter, due to ramp-up of new stores and heightened competition.

Outlook and guidance

• Investments in quick commerce will continue, with absolute losses expected to rise in the next 1-2 quarters as expansion persists.

• Profitability in quick commerce is expected to improve as the proportion of mature stores increases and network utilization rises.

• The company continues to invest in growth segments and has committed to supporting subsidiaries in their development stages.

• No fixed cap on losses; expansion will be prioritized as long as core business remains strong and market opportunity is large.

• No impairment was deemed necessary for key subsidiaries despite accumulated losses, based on future plans and performance reviews.