Eternal Ltd Q2 FY27 Results Analysis: EBITDA Surges 215%, Quick Commerce Swings to Profit

Cofacto Research Published October 21, 2026 3 min read
Positive

Eternal Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 24,138.00 Cr (+77.60% YoY) and PAT growth of +92.30% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details
Results dateOctober 21, 2026
QuarterQ2 FY 2026-2027
Revenue (Q2)Rs. 24,138.00 Cr (+77.60% YoY)
PAT (Q2)Rs. 125.00 Cr (+92.30% YoY)
EBITDA margin3.12% (+136 bps YoY)
EPS (Q2)Rs. 0.14 (+100.00% YoY)
Market capRs. 301,193.54 Cr
CMPRs. 312.35

Quarter Snapshot

Quick commerce swung from breakeven to a Rs.488 Cr segment profit (2.6% of revenue) on 93.6% YoY revenue growth, driving consolidated EBITDA up 214.6% YoY to Rs.752 Cr with margin at 3.12% from 1.76%. PAT rose 92.3% YoY to Rs.125 Cr, though PBT of Rs.323 Cr is more than accounted for by Rs.351 Cr of other income and the effective tax rate rose to 61.3%. All management-tracked targets are On Track or Met, with Blinkit store additions ahead of the pace needed for the 3,000-store March 2027 target, while H1 free cash flow was –Rs.1,378 Cr on a doubled capex cycle.

Key Investment Insights

Key Positives

  • Revenue grew 77.6% YoY to Rs.24,138 Cr (+19.4% QoQ); quick commerce revenue was Rs.19,152 Cr (+93.6% YoY, ~79% of total), inflated by the 1P accounting transition
  • Quick commerce segment result swung from Rs.5 Cr to Rs.488 Cr YoY, with segment margin expanding from 0.1% to 2.6%
  • P&L-derived EBITDA grew 214.6% YoY to Rs.752 Cr, with margin expanding to 3.12% from 1.76% YoY
  • PAT grew 92.3% YoY to Rs.125 Cr on PBT of Rs.323 Cr (+150.4% YoY)
  • CFO/PAT improved to 1.28x from 0.42x a year earlier, with H1 operating cash flow of Rs.278 Cr vs Rs.38 Cr
  • Hyperpure segment result rose to Rs.19 Cr (1.6% margin) from Rs.1 Cr (0.1%) YoY
  • Blinkit store additions tracking ~200/quarter vs ~185/quarter needed to reach the 3,000-store target by March 2027

Risk Factors

  • Effective tax rate rose to 61.3% from 49.6% YoY as carried-forward losses are fully utilized — a structural FY27 headwind to reported PAT
  • H1 free cash flow was –Rs.1,378 Cr, with capex nearly doubling YoY to Rs.1,656 Cr
  • Other income of Rs.351 Cr exceeded PBT of Rs.323 Cr; EBITDA less finance costs and depreciation was –Rs.28 Cr
  • Food delivery segment margin eased to 19.0% from 20.8% YoY, and standalone PAT declined to Rs.641 Cr from Rs.691 Cr
  • 'All other segments' loss widened to –Rs.85 Cr from –Rs.54 Cr YoY; Going Out posted a –Rs.55 Cr segment loss
  • Contested GST delivery-charge demands total ~Rs.447 Cr with no provision booked; OCI of –Rs.436 Cr took total comprehensive income to –Rs.311 Cr
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.

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