Eternal Limited (formerly known as Zomato Limited) conducted its Q4FY26 earnings conference call on April 28, 2026, reiterating its financial targets and strategic outlook. The management, led by Chief Executive Officer Albinder Singh Dhindsa and Chief Financial Officer Akshant Goyal, addressed analyst queries regarding growth trajectories, profitability, and competitive dynamics across its business verticals.

Financial Guidance and Growth Outlook

The company confirmed its overall EBITDA guidance of $1 billion by FY29. This target is underpinned by the expectation of a 60% CAGR in quick commerce Net Order Value (NOV) and steady growth in the food delivery business, which is currently expanding at a rate of 19-20%. Analysts noted that the implied margin for quick commerce under this guidance is approximately 3-3.5% over the next three to four years, a figure the management acknowledged as broadly in line with their internal calculations.

Regarding near-term expansion, the company is on track to achieve its guidance of 3,000 dark stores by March. However, the management clarified that the general growth rate for FY27 is unlikely to be 100% as previously indicated, potentially settling in the 70-80% range. The company emphasized the need for flexibility to respond to market dynamics in the short and medium term.

Operational Metrics and Competitive Strategy

Management highlighted that fixed costs in quick commerce remained flattish during the quarter while Monthly Transacting Users (MTU) additions stayed strong. This trend is attributed to continued high marketing spends for new customer acquisition, which the company views as valuable given the current low cost of acquisition due to competitors pulling back.

In response to questions about competition, the management stated that competitive intensity remains high across various markets. However, they affirmed that the company is growing as fast as possible while adhering to principles of healthy, sustainable growth. They are not engaging in "unhealthy" growth purely for market share gains. The focus remains on customer retention and frequency, which have not been meaningfully impacted by competitive activities.

Business Segment Updates

Quick Commerce and Blinkit

The quick commerce business is seeing a shift in its customer mix, with a significant acceleration in new customer additions affecting the average frequency of orders per customer. The management noted that the number of orders per customer has dipped slightly from around 3.6 to 3.35, largely due to the influx of new users with lower initial ordering frequency. The company continues to invest in marketing to capitalize on low acquisition costs.

Food Delivery and District

On the food delivery side, the company is implementing a strategy of increasing platform fees across the board to boost revenue per order. This incremental revenue is then channeled into targeted discounts for price-sensitive cohorts in specific geographies to drive growth. The management also addressed the rollout of 'Toing' by a competitor, stating that Eternal has no immediate plans to replicate that model and will continue to focus on its core offerings, including the 'Bistro' experiment, which remains a small, early-stage initiative.

Regarding the District business, the management downplayed concerns about macro challenges, such as event cancellations, impacting the overall growth path, noting that events are just one part of a diverse category mix.

Capital Allocation and Future Investments

The management discussed capital expenditure, particularly regarding automation in warehouses. They indicated that while automation is expected to increase over the next few years, investments will be guided by a Return on Capital Employed (ROCE) framework rather than a pursuit of automation for its own sake. The company is also testing various ad monetization strategies using AI, though it does not operate with specific caps on ad revenue as a percentage of GMV.

Regarding the impact of external factors like fuel prices, the management stated that unless there is a drastic increase, they do not expect fuel price hikes to have a meaningful impact on margins, as past experiences suggest costs can be passed on to consumers without significantly affecting demand.

Eternal has revised its quick commerce growth guidance for FY27, reducing the target to 70% YoY growth from the previously announced 100% target. This strategic adjustment comes as the company continues its ambitious expansion plans targeting 3,000 dark stores by March while implementing a shift towards geographic diversity.

Revised Growth Guidance and Strategic Recalibration

The company's decision to lower its quick commerce growth guidance to 70% YoY for FY27 represents a significant strategic recalibration from its earlier 100% growth target. This adjustment reflects a more measured approach to market expansion and operational sustainability in the competitive quick commerce landscape.

Dark Store Expansion Strategy Continues

Despite the revised growth guidance, Eternal maintains its target of reaching 3,000 dark stores by March. This expansion strategy emphasizes geographic diversity rather than pure growth velocity, indicating a more sustainable approach to market penetration and operational efficiency.

Financial Projections and Margin Framework

The company continues to align with analyst estimates projecting 3.00% to 3.50% quick commerce margins based on the $1 billion EBITDA goal by FY29. The overall $1 billion profit goal for FY29 encompasses all current operations, including Hyperpure, which remains strategically important despite being the smallest operational segment.

Strategic Flexibility and Market Adaptation

The guidance revision demonstrates Eternal's strategic flexibility and willingness to adapt to market conditions and operational realities. This shift from the previous 100% growth target suggests a focus on sustainable expansion and profitability rather than aggressive growth metrics, positioning the company for long-term market leadership in the quick commerce sector.