Eternal (ETERNAL) Q4 21/22 earnings summary

Executive summary

• FY22 Adjusted Revenue rose 109% to INR 55.4bn; consolidated revenue from operations increased 110% to INR 41.9bn, while consolidated net loss widened to INR 12.2bn from INR 8.2bn.

• Food delivery scaled rapidly, with GOV up 125% to INR 213.0bn, but its contribution margin fell to 1.7% of GOV and Adjusted EBITDA margin turned negative at -1.8%.

• Strategy prioritizes core food delivery profitability and expansion into quick commerce through the proposed Blinkit acquisition.

Financial highlights

• Consolidated revenue from operations was INR 41,924mn vs INR 19,938mn YoY; total income was INR 46,873mn vs INR 21,184mn.

• Consolidated net loss was INR 12,225mn vs INR 8,164mn; basic and diluted EPS were -INR 1.67 vs -INR 1.51.

• Adjusted Revenue reached INR 55.4bn, up 109% YoY; Adjusted EBITDA loss widened to INR 9.7bn from INR 3.3bn, with margin at -18% vs -12%.

• Operating cash outflow improved to INR 6,930mn from INR 10,179mn; financing cash flow was INR 87,498mn, reflecting IPO proceeds.

• Other income increased to INR 4,949mn from INR 1,246mn, mainly due to INR 3,700mn higher interest income on IPO-funded bank deposits.

Outlook and guidance

• Core food delivery remains the key priority, with stated focus on achieving profitability while sustaining growth and reducing operating losses.

• Proposed Blinkit acquisition is positioned as a quick-commerce extension intended to expand addressable market, customer wallet share and order frequency, and improve fleet utilization over time.

• Food services in India were expected to grow at a CAGR above 9% over the next few years; low restaurant-food penetration underpins the long-term opportunity.