Eternal management has shared its outlook on quick commerce margins during a recent conference call, highlighting both near-term challenges and long-term confidence in the business segment.

Management Guidance on Quick Commerce Margins

The company's leadership acknowledged the current competitive landscape in the quick commerce sector, stating that margins are difficult to predict in the immediate future. This uncertainty stems from the intense competitive environment that characterizes the quick commerce industry.

Long-Term Margin Targets

Despite the near-term uncertainties, Eternal's management expressed high confidence in achieving margins of 5% to 6% of Net Order Value (NOV) in the long term. This target demonstrates the company's strategic vision for profitability in the quick commerce segment once market dynamics stabilize.

Competitive Environment Impact

The management's commentary reflects the broader challenges facing the quick commerce industry, where competitive intensity continues to influence pricing strategies and margin structures. The company's approach appears focused on long-term sustainability rather than short-term margin optimization.

This guidance provides investors with insight into Eternal's strategic approach to the quick commerce business, balancing immediate market realities with longer-term profitability objectives.

Eternal has announced strong third-quarter results, demonstrating robust operational performance across key financial metrics. The company's consolidated net profit showed remarkable growth, rising significantly from the previous quarter while meeting analyst expectations.

Financial Performance Overview

The company's Q3 results reflect strong operational efficiency and revenue growth momentum. Key financial metrics showed substantial improvement compared to the previous quarter, with performance exceeding analyst estimates in most categories.

Revenue and Profitability Growth

The company's revenue performance was particularly noteworthy, reaching ₹163 billion in Q3 compared to ₹135.9 billion in the previous quarter. This represents a solid 19.94% quarter-on-quarter growth and exceeded analyst estimates of ₹155 billion by approximately 5.16%.

Net profit demonstrated exceptional growth trajectory, increasing from ₹650 million to ₹1.02 billion quarter-on-quarter. The 57% growth in net profit aligned perfectly with analyst estimates, indicating strong operational execution and financial management.

Operational Efficiency Metrics

EBITDA performance showed significant improvement, rising to ₹3.68 billion from ₹2.39 billion in the previous quarter, representing a 53.97% quarter-on-quarter increase. The actual EBITDA substantially exceeded analyst estimates of ₹3 billion.

The EBITDA margin expanded to 2.26% from 1.76% in the previous quarter, marking a 50 basis points improvement. This margin expansion surpassed the estimated 1.9%, demonstrating enhanced operational efficiency and cost management capabilities.

Performance Summary

Eternal's Q3 results showcase strong financial performance with consistent growth across all major metrics. The company successfully exceeded revenue and EBITDA estimates while meeting net profit projections, indicating robust business fundamentals and effective operational management during the quarter.