Eternal Limited (formerly Zomato Limited) has reported a significant leap in its financial performance for the second quarter of fiscal year 2026, alongside plans for a new corporate social responsibility (CSR) initiative.

Financial Highlights

The company's consolidated revenue from operations saw a remarkable increase of 183% year-over-year, reaching INR 13,590.00 crores in Q2 FY2026, compared to INR 4,799.00 crores in the same quarter last year. This substantial growth underscores the company's expanding market presence and operational efficiency.

For a clearer picture of the financial performance, here's a breakdown of the key figures:

Despite the impressive revenue growth, the company's consolidated profit for Q2 FY2026 stood at INR 65.00 crores, a decrease from INR 176.00 crores in Q2 FY2025. This decline in profit amidst revenue growth may indicate increased operational costs or strategic investments for future growth.

Half-Year Performance

For the first half of FY2026, Eternal Limited's revenue reached INR 20,757.00 crores, marking a 130.51% increase from INR 9,005.00 crores in the previous year. The half-yearly profit, however, decreased to INR 90.00 crores from INR 429.00 crores in the same period last year.

New CSR Initiative

In a significant move towards corporate social responsibility, Eternal Limited's Board has approved the incorporation of Eternal General Service Foundation. This wholly-owned subsidiary will focus on charitable and social welfare activities, including:

• Hunger relief
• Healthcare
• Education
• Environmental sustainability

The foundation will be established with a paid-up capital of INR 10.00 lakh, demonstrating the company's commitment to giving back to society.

Ongoing Challenges

Eternal Limited continues to face GST disputes totaling INR 441.00 crores related to delivery charges. However, the management maintains confidence in their position, believing they have a strong case on merits.

Segment Performance

The company's financial results reveal strong performance across various segments:

1. India food ordering and delivery: Revenue of INR 2,483.00 crores
2. Hyperpure supplies (B2B business): Revenue of INR 1,023.00 crores
3. Quick commerce: Revenue of INR 9,891.00 crores
4. Going Out: Revenue of INR 189.00 crores

The quick commerce segment showed exceptional growth, contributing significantly to the overall revenue increase.

Conclusion

Eternal Limited's Q2 FY2026 results demonstrate the company's ability to drive substantial revenue growth, particularly in its quick commerce segment. While profitability has seen a temporary decline, the company's strategic initiatives, including the new CSR foundation, indicate a focus on long-term sustainable growth and social impact. Investors and market watchers will likely keep a close eye on how Eternal Limited balances its rapid expansion with profitability in the coming quarters.

Eternal , the parent company of food delivery giant Zomato, is poised to report a staggering revenue growth in its September quarter results, primarily fueled by its quick commerce platform Blinkit. However, the company's profitability is expected to face significant pressure.

Revenue Boom vs Profit Squeeze

Analysts project a remarkable year-on-year revenue growth of up to 137% for Eternal in Q2. This surge is largely attributed to the strong performance of Blinkit, the company's quick commerce arm. However, the bottom line paints a contrasting picture, with profit after tax (PAT) potentially declining by up to 71% year-on-year.

Financial Projections

Brokerage estimates for Eternal's Q2 performance show:

Segment-wise Performance

Food Delivery

• Projected gross order value: Rs 11,340 crore
• Year-on-year growth: 17%

Blinkit (Quick Commerce)

• Estimated gross order value: Rs 14,590 crore
• Quarter-on-quarter growth: 24%

Growth Drivers and Challenges

The substantial revenue growth is primarily driven by:

1. Strong performance of Blinkit in the quick commerce segment
2. Steady growth in the core food delivery business

However, profitability is under pressure due to:

• Elevated costs
• Increased rider incentives
• Higher marketing expenses

Market Competition and Sustainability Concerns

Analysts have raised concerns about the sustainability of Eternal's high growth trajectory, citing intensifying competition in the quick commerce space. Key competitors include:

• Zepto
• Amazon
• JioMart

The company's continued heavy spending on customer acquisition and market expansion is expected to keep profitability under pressure in the near term.

Investor Outlook

While the revenue growth presents an optimistic picture, investors may need to closely monitor the company's path to profitability. The balancing act between aggressive growth and sustainable profitability will likely be a key focus area for Eternal in the coming quarters.