Eternal, Meesho, Paytm, Ather Energy & more: How new-age firms performed in Q2FY27

Eternal, Paytm, Lenskart, Swiggy, Nykaa and other new-age companies which are operating various different businesses like food and groceries delivery, fintech, lifestyle retail, e-commerce, electric two-wheeler and many others have come out with their September quarter earnings.

One of the biggest takeaways from Q2FY27 earnings is that revenue growth remains strong across most new-age companies, but their ability to convert that growth into profits varies significantly. Some companies like Eternal, Ather Energy, Lenskart and others reported profitability during the September quarter, while some companies like Swiggy, Urban Company, Ola Electric and Meesho continue to report quarterly losses.

Here is a brief overview of how new-age tech companies performed in Q2FY27:

• Consolidated figures considered for revenue and net profit
• *Paytm's Q2FY26 profit was after an exceptional loss of ₹190 crore.
• **Rentomojo Q2FY26 profit included a deferred tax credit of ₹33 crore.

Eternal: Profit margin remains wafer-thin

Eternal saw its revenue from operations soar by 78% YoY to ₹24,138 crore, by far the highest among all the companies under consideration. This high growth was aided by Blinkit, which recently moved to an inventory ownership model, so the entire value of goods sold is recognised as revenue.

On a like-for-like basis, its adjusted revenue grew 58%. Net profit increased 92% YoY to ₹125 crore. Blinkit's net order value rose 79% to ₹20,940 crore, and the quick commerce arm posted adjusted EBITDA profit of ₹184 crore, up from a loss of ₹156 crore in the year-ago quarter.

The company now expects to have more than 3,500 Blinkit stores by March 2027, up from the 2,751 stores it operated at the end of Q2FY27. One of the company's key challenges is wafer-thin margins. Eternal reported a consolidated EBITDA margin of 3.1% and a net profit margin of 0.52%.

Swiggy continues to report losses

Swiggy’s revenue from operations grew 36% YoY to ₹7,571 crore, while the net loss shrank 16% YoY to ₹922 crore. However, Q2 losses increased compared to the ₹791 crore loss in Q1FY27. Higher losses were mainly due to investment in its quick commerce arm, Instamart. Food delivery clocked its highest-ever adjusted EBITDA at ₹341 crore, or a margin of 3.4% on gross order value. Instamart, Swiggy’s quick commerce arm, however, reported an adjusted EBITDA loss of ₹895 crore as it expanded its network, adding 69 dark stores to take the total count to 1,240 stores.

Paytm Q2 net profit jumps 971% due to lower base

Paytm's net profit rose to ₹225 crore, from ₹21 crore last year, up 971% YoY. A lot of this is due to a low base: Paytm's Q2FY26 profit had suffered due to an exceptional loss of ₹190 crore. Adjusting for exceptional items, profit before tax grew 35% YoY to ₹296 crore. This is still robust growth. Revenue from operations increased 28% YoY to ₹2,648 crore, or 33% if one excludes Payments Infrastructure Development Fund (PIDF) incentives from both quarters. Paytm also clarified that it doesn't need a merchant fee on UPI for profitable growth, and that if it did receive any such fee, it would be an upside.

Meesho Q2 net loss narrows to ₹132 crore

Meesho's revenue from operations jumped 34% YoY to ₹4,132 crore while net loss shrank by more than two-thirds to ₹132 crore from ₹411 crore. Margin recovery contributed, but a one-off-heavy base also helped. Q2FY26 had an exceptional loss of ₹45 crore and a one-time tax charge of ₹64 crore relating to a business combination. Net merchandise value (NMV) grew 23% YoY to ₹12,911 crore while contribution margin widened to 6.0% of NMV, from 4.6% in Q1FY27.

Ather Energy turns profitable for the first time

Ather Energy posted a net profit of ₹1.26 crore for Q2FY27, compared with ₹154 crore loss a year ago and ₹51 crore loss in Q1FY27. Revenue from operations increased 63% YoY to ₹1,464 crore, while EBITDA margin improved to 4.9% from -9.6%. The company reported 42% YoY increase in volumes to 93,211 units as strong demand is outrunning supply. Pre-orders jumped over 2x to 1.80 lakh units, and its Hosur manufacturing facility was running at 98% utilisation at peak production times. The company expects to increase annual capacity to about 11.4 lakh units by Q2FY28.

Urban Company net loss widened to ₹182 crore

Urban Company's revenue rose 41% YoY to ₹537 crore, but its net loss widened to ₹182 crore. Higher losses came on the back of massive investment in its on-demand, quick-response househelp service, InstaHelp, which reported an adjusted EBITDA loss of ₹174 crore on just ₹20.54 crore of revenue during the quarter.

Ola Electric net loss narrowed to ₹362 crore

Ola Electric consolidated net loss during the second quarter narrowed to ₹362 crore compared to a net loss of ₹418 crore in the same quarter last year. Meanwhile, revenue from operations declined 39% YoY to ₹421 crore as the company slipped to the fifth position among electric two-wheeler makers with 12,096 registrations and 5.4% market share.