Eternal (ETERNAL) Q1 25/26 earnings summary

Executive summary

• Quick commerce segment showed strong growth, mainly from existing service areas, and the company is transitioning its inventory model to 1P for margin improvement within two to three quarters.

• Food delivery growth has rebounded after stagnation, with improved customer retention and higher app engagement.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, reviewed by Deloitte Haskins & Sells.

• Incorporation of wholly owned subsidiary Blinkit Foods Limited approved.

• Leadership remains focused on maintaining market leadership and adapting strategy based on competitive intensity.

Financial highlights

• Consolidated revenue from operations rose to INR 7,167 crores, up from INR 4,206 crores year-over-year and INR 5,833 crores sequentially.

• Quick commerce margins improved from -2.4% to -1.8% this quarter, with some mature city operations already at 2.5% margin.

• Food delivery NOV growth slowed to 13% year-over-year from 27% last year, attributed to lower transacting customer growth and app engagement.

• Quick commerce revenue: INR 2,400 crores (up from INR 942 crores year-over-year).

• Consolidated profit for the quarter was INR 25 crores, compared to INR 253 crores in the same quarter last year.

Outlook and guidance

• Margin accretion from the inventory model shift in quick commerce is expected within two to three quarters.

• Transition in quick commerce segment from marketplace to a combination of marketplace and inventory-led model expected to increase direct sales revenue and reduce B2B segment revenue.

• Growth momentum in quick commerce is expected to remain strong for at least the next two years as infrastructure expands.

• Food delivery margins may remain stable in the near term as the focus is on growth, with long-term potential for margin expansion.

• No specific break-even timeline for quick commerce provided, as it depends on expansion pace and competitive intensity.