Eternal (ETERNAL) Q3 24/25 earnings summary

Executive summary

• Quick commerce expansion accelerated, surpassing 1,000 stores ahead of schedule, driven by increased organizational bandwidth and confidence in business fundamentals.

• Consolidated revenue from operations for the quarter ended December 31, 2024, was ₹5,405 crore, up from ₹3,288 crore in the same quarter last year, reflecting strong growth across business segments.

• Food delivery experienced a broad-based slowdown due to macroeconomic factors and seasonality, with no material impact from competitive 10-minute delivery initiatives.

• Major acquisitions of Orbgen Technologies and Wasteland Entertainment were completed, expanding the entertainment and ticketing business.

Financial highlights

• Contribution margin for mature stores remains healthy, with top stores at 6.4%, and room for further improvement as scale and efficiency increase.

• Absolute losses in quick commerce expected to rise in the next 1-2 quarters due to ongoing investments and rapid store expansion.

• Total income for the quarter was ₹5,657 crore, with total expenses at ₹5,533 crore.

• Net profit for the quarter was ₹59 crore, compared to ₹138 crore in the same quarter last year; total comprehensive income for the quarter was ₹39 crore.

• Marketing costs increased, especially in the latter half of the quarter, driven by new store ramp-up and heightened competition.

Outlook and guidance

• Investments in quick commerce will continue, with losses likely to increase in the short term but expected to improve as store maturity rises.

• Margin expansion in food delivery is expected through small optimizations across delivery cost, consumer fees, and AOV, without sacrificing market share.

• The company continues to invest in growth segments and has committed to supporting subsidiaries in their development stages.

• No impairment was deemed necessary for key subsidiaries despite accumulated losses, based on future plans and performance reviews.