Eternal Q2FY26 results: Net profit slumps 63% to ₹65 crore; Quick commerce revenue jumps multifold

Shares of Eternal Ltd, the parent company of food delivery brand Zomato, fell 4% on Thursday to ₹340.50 on the NSE after the company reported a quarterly net profit decline to ₹65 crore.

However, its total revenue from operations surged 183% year-on-year (YoY) to ₹13,590 crore in the quarter, up from ₹4,799 crore in Q2 FY25.

On the bottom line, the company’s net profit for the quarter fell sharply to ₹65 crore from ₹175 crore in Q2 FY25, primarily due to weaker operational performance.

On the operational front, adjusted EBITDA for the quarter declined 32% year-on-year to ₹224 crore. However, the adjusted EBITDA margin (as a percentage of NOV) hit an all-time high of 5.3%, with the business delivering an absolute adjusted EBITDA of over ₹500 crore for the quarter, up from ₹451 crore in Q1 FY26.

At the segment level, the quick commerce vertical Blinkit saw a massive surge in revenue to ₹9,891 crore from ₹1,156 crore in Q2 FY25, emerging as the top revenue contributor for the quarter. Following Blinkit, the food delivery segment grew 23% year-on-year to ₹2,482 crore, up from ₹2,012 crore in the same quarter last year.

Food delivery growth has stabilised, while quick commerce continues to surge. Food delivery net order value (NOV) rose 14% YoY, slightly improving from 13% YoY growth in the previous quarter. Meanwhile, quick commerce NOV soared 137% YoY and 27% sequentially, marking its highest growth in ten quarters.

The difference between net order value and the adjusted revenue for the quick commerce business narrowed down as 84.7% of the revenue comes from the total net order value. This contributed to a 320-basis-point (bps) increase in gross margin for the quick commerce business, Blinkit.

In addition, the quick commerce business has now pivoted from being a franchise model to an inventory ownership model. The change was driven by a sharp increase in inventory purchases, which surged to ₹8,795 crore from ₹1,369 crore in the previous year.

According to the latest shareholder letter, 80% of the quick commerce net order value in Q2FY26 came from the own inventory model.

Store addition on track

As envisaged earlier, the quick commerce dark store addition is on track with 270 dark stores added in Q2 FY26. The company aims to achieve 2,100 stores by December 2025.

In addition, Blinkit CEO Albinder Dhindsa projected the company aims to achieve 3,000 dark stores by 2027.