Eternal (ETERNAL) Q4 24/25 earnings summary

Executive summary

• Competitive intensity in quick commerce remains high, impacting margin expansion and leading to elevated costs in marketing, real estate, and last-mile delivery.

• Store roll-outs continue at a strong pace, with expansion focused increasingly on smaller cities, and break-even timelines for new stores remain consistent.

• Food delivery growth guidance of 20% is positioned as a long-term CAGR target, with near-term growth expected to be lower due to challenges in affordability, assortment, and delivery timelines.

• The company has shut down Zomato Everyday due to limited scalability, while new initiatives like Bistro and B2B businesses are in early stages and reported separately.

• Consolidated revenue from operations for FY25 was INR 20,243 crores, up from INR 12,114 crores in FY24, with net profit attributable to owners at INR 527 crores for FY25, compared to INR 351 crores in FY24.

Financial highlights

• Ad income now exceeds 4% of GOV, while customer fees (including delivery and handling) contribute about 3%.

• Other income increased from INR 252 crore to INR 368 crore, primarily due to treasury gains following a QIP in the previous quarter.

• Adjusted EBITDA margin for quick commerce stands at -2% of NOV, reflecting ongoing investment and competition.

• Consolidated profit before tax for FY25 was INR 697 crores, up from INR 291 crores in FY24.

• Cash and cash equivalents at year-end stood at INR 666 crores (consolidated) and INR 431 crores (standalone).

Outlook and guidance

• Competitive pressure is expected to persist, with no immediate margin improvement anticipated.

• Food delivery 20%+ growth guidance is a four- to five-year CAGR target, not an annual forecast.

• Going Out business is expected to remain at -2% to -2.5% adjusted EBITDA margin in the near term as investments continue.

• Management expects continued support for subsidiaries with accumulated losses, anticipating long-term growth and returns.