Eternal Limited has successfully completed the incorporation of its wholly-owned subsidiary, Eternal General Service Foundation, receiving the official certificate of incorporation from the Ministry of Corporate Affairs on December 18, 2025. This development follows the company's robust Q2 FY2026 financial performance, which showed remarkable revenue growth of 183% year-over-year.

Financial Performance Overview

The company's consolidated revenue from operations reached 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.

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.

CSR Subsidiary Incorporation Completed

Eternal General Service Foundation has been officially incorporated as a wholly-owned subsidiary of Eternal Limited. The foundation received its certificate of incorporation on December 18, 2025, with the Corporate Identity Number U88900DL2025NPL459915. The subsidiary will focus on charitable and social welfare activities across multiple areas.

The foundation will concentrate on hunger relief, healthcare, education, and environmental sustainability initiatives, demonstrating the company's commitment to giving back to society.

Segment-wise Performance

The company's financial results reveal strong performance across various business segments, with quick commerce leading the growth trajectory.

The quick commerce segment showed exceptional growth, contributing significantly to the overall revenue increase and positioning itself as the primary growth driver for the company.

Ongoing Business 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. This regulatory challenge remains a key area of focus for the company's legal and compliance teams.

Strategic Outlook

The completion of the CSR subsidiary incorporation marks a significant milestone in Eternal Limited's corporate social responsibility journey. Combined with the company's strong revenue performance across segments, particularly in quick commerce, this development reflects the organization's commitment to balanced growth encompassing both business expansion and social impact initiatives. The foundation's establishment with dedicated focus areas positions Eternal Limited to make meaningful contributions to societal welfare while maintaining its competitive market position.

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.