Eternal (ETERNAL) Q3 25/26 earnings summary

Executive summary

• Achieved break-even in quick commerce and Hyperpure segments, with strong margin expansion and operational improvements.

• CEO transition announced: Deepinder Goyal resigns as CEO effective February 1, 2026, with Albinder Singh Dhindsa appointed as the new CEO; Goyal recommended as Vice Chairman and Director for a five-year term upon shareholder approval.

• Store throughput declined 6% quarter-on-quarter, but contribution margin rose 90 bps and EBITDA improved 130 bps.

Financial highlights

• Consolidated revenue from operations for the quarter ended December 31, 2025, was INR 16,315 crores, up from INR 13,590 crores in the previous quarter and INR 5,405 crores in the same quarter last year.

• Net profit for the quarter was INR 102 crores, compared to INR 65 crores in the previous quarter and INR 59 crores in the same quarter last year.

• Contribution margin in quick commerce expanded by 90 bps despite a 20 bps drop in take rates.

• EBITDA margin improved by 130 bps quarter-on-quarter.

• CapEx per store increased due to automation and larger store sizes.

Outlook and guidance

• Long-term margin confidence remains high, targeting 5%-6% of NOV for EBITDA margin.

• Guidance for $3 billion NOV by 2030, implying over 30% CAGR, driven by market share gains.

• The company is contesting GST demand orders totaling INR 441 crores and believes it has a strong case, but the ultimate outcome is uncertain.

• No material impact from new labor codes is expected at this stage; further assessment will be made upon notification of final rules.

• Losses in the 'going out' segment expected to decline sequentially, aiming for break-even in 4-6 quarters.