Eternal (ETERNAL) Q1 26/27 earnings summary

Executive summary

• Raised long-term margin guidance in quick commerce from 5%-6% to 6% due to increased CapEx per store and higher efficiency, with most growth coming from existing cities.

• Older customer cohorts are spending 3x more than three years ago, primarily due to increased order frequency rather than higher average order value (AOV).

• Competitive intensity in quick commerce peaked this quarter but has become more predictable, mainly driven by subsidies and discounting, which management views as unsustainable.

• Focus remains on sustainable value creation and infrastructure rather than discount-led growth, with scale benefits being reinvested to improve customer value.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, reviewed by Deloitte Haskins & Sells.

Financial highlights

• Achieved 21% quarter-over-quarter volume growth in Blinkit, in line with historical seasonal trends.

• Consolidated revenue from operations for Q1 FY27 was INR 20,211 crore, up from INR 17,292 crore in Q4 FY26 and INR 7,167 crore in Q1 FY26.

• Consolidated net profit for Q1 FY27 was INR 92 crore, compared to INR 174 crore in Q4 FY26 and INR 25 crore in Q1 FY26.

• Take rates in Blinkit improved, but contribution margin was impacted by increased minimum wages and higher last-mile costs due to seasonality.

• Standalone revenue for Q1 FY27 was INR 3,349 crore, up from INR 2,953 crore in Q4 FY26 and INR 602 crore in Q1 FY26.

Outlook and guidance

• Management expects AOV to remain flat year-over-year, with order growth as the primary driver.

• Margin outlook remains positive, with no near-term pressures anticipated as competition stabilizes.

• CapEx per store guidance increased to INR 2.5 crore, reflecting larger store formats and warehousing investments.

• Investments in subsidiaries are expected to generate growth and returns over time; no impairment required as of June 30, 2026.

• The transfer of the Nugget business is part of a broader effort to streamline the corporate structure.