Eternal (ETERNAL) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue from operations was INR 24,138 crore and profit before tax was INR 323 crore; quick commerce and food ordering and delivery led segment results.

• Food delivery growth investment is prioritized over percentage-margin optimization, with margins expected broadly flattish over the next one to two years.

• Quick-commerce expansion is set to accelerate, especially in smaller cities, supported by strong store paybacks and more predictable competition.

• Dark.ai is an early-stage application built on fine-tuned open-source models and viewed as a high-upside, high-uncertainty opportunity.

• Board approved transferring the India Going-out business to a wholly owned subsidiary and an Adonmo-to-Mygate share swap, subject to conditions.

Financial highlights

• Consolidated Q2 revenue was INR 24,138 crore vs INR 13,590 crore YoY; H1 revenue was INR 44,349 crore vs INR 20,757 crore.

• Consolidated Q2 profit before tax was INR 323 crore vs INR 129 crore YoY; H1 profit before tax was INR 595 crore vs INR 217 crore.

• Consolidated profit attributable to parent owners was INR 125 crore in Q2 and INR 217 crore in H1; basic EPS was INR 0.14 and INR 0.24, respectively.

• Standalone Q2 revenue was INR 3,663 crore vs INR 2,650 crore YoY; net profit was INR 641 crore vs INR 691 crore. H1 net profit was INR 1,226 crore vs INR 1,293 crore.

Outlook and guidance

• Food-delivery margins are expected to remain broadly flattish for the next one to two years as surplus is reinvested where it supports growth and absolute adjusted EBITDA.

• Quick-commerce NOV growth is expected to pick up from the December quarter YoY; accelerated store additions are not expected to reduce margins in the short term.

• FY2029 EBITDA guidance of $1 billion was maintained, with no further detail provided.

• Dark.ai is a few months from launch; monetization and investment plans will be refined using customer feedback.

• Going-out India transfer to ZEPL is expected within 30 days of BTA execution; Adonmo/Mygate share swap is expected to close on or before Dec. 5, 2026, subject to conditions.