Eternal, the parent company of Zomato and Blinkit, reported a 92.3% year-on-year increase in consolidated net profit for the September 2026 quarter. However, rising operating expenses and profit below analyst expectations highlight the challenges facing India’s competitive food delivery and quick commerce businesses.
Eternal Q2 FY27 Results Show Revenue Growth and Rising Costs
Eternal’s latest financial results, announced on October 21, 2026, offer a fresh look at India’s online food delivery and quick commerce markets. The company reported consolidated net profit of ₹125 crore for the second quarter of financial year 2026-27, compared with ₹65 crore in the same quarter last year.
Revenue from operations increased 77.6% to ₹24,138 crore from ₹13,590 crore a year earlier. Compared with the preceding quarter, revenue rose from ₹20,211 crore, while net profit increased from ₹92 crore.
The numbers point to strong business expansion, but they also require closer examination. Eternal’s total expenses increased approximately 75% year-on-year to ₹24,166 crore, slightly exceeding its revenue from operations. The company also fell short of analyst profit estimates, despite reporting substantial growth in revenue.
Eternal operates several businesses, including Zomato’s food delivery service, Blinkit’s quick commerce platform and Hyperpure, which supplies restaurants. Their different growth rates help explain how the company is changing and where the competitive pressure is building.
Zomato Food Delivery Business Records Double-Digit Growth
Food delivery remains a central part of Eternal’s business, even as quick commerce attracts a growing share of attention and investment.
During Q2 FY27, the food delivery business recorded a net order value (NOV) of ₹11,445 crore, an increase of 21.5% from ₹9,423 crore in the year-ago quarter. Adjusted revenue rose 35.5% year-on-year to ₹3,879 crore.
The average number of monthly transacting customers reached 28 million, compared with 27.2 million in the previous quarter. This measure indicates that a larger customer base was placing orders through the platform, although it does not establish how frequently every customer ordered or how much each spent.
Eternal’s reported adjusted EBITDA for food delivery stood at ₹627 crore, with an adjusted EBITDA margin of 5.5%. These figures indicate that the business continued to generate operating earnings while expanding order value.
For customers in cities such as Nagpur, Indore, Jaipur, Lucknow and Surat, the wider industry trend is relevant because online food delivery offers access to restaurants beyond the immediate neighbourhood. However, the company’s national financial results do not establish that every city is experiencing the same growth rate.
Food delivery platforms still need to balance customer discounts, restaurant commissions, delivery costs and service quality. Growth in order value is encouraging, but sustained profitability depends on managing these expenses as competition continues.
Blinkit Quick Commerce Growth Changes the Business Mix
Blinkit was another major contributor to Eternal’s latest results. The quick commerce business recorded net order value of ₹20,940 crore in Q2 FY27, up 79.3% from ₹11,679 crore a year earlier. Its reported revenue increased 93.6% to ₹19,152 crore.
Quick commerce platforms deliver groceries, household essentials, packaged food and other products from local fulfilment centres commonly known as dark stores. These facilities are designed to keep frequently ordered products close to customers, reducing the distance between inventory and delivery destinations.
Blinkit’s network reached 2,751 stores during the quarter. Eternal indicated plans to expand the network to more than 3,500 stores by March 2027 and around 5,000 by March 2028, reflecting its intention to extend the service to more markets.
The expansion could create additional opportunities for local suppliers, warehouse workers and delivery partners. It may also give consumers in smaller cities more convenient access to everyday products.
However, rapid expansion requires investment in property, inventory, staffing, logistics and technology. A larger store network does not automatically guarantee higher profits. Each location needs sufficient order volume to cover its operating costs, and demand can vary considerably between neighbourhoods.
Blinkit’s growth therefore illustrates both the opportunity and the financial challenge facing quick commerce companies in India.
Why Rising Expenses Remain a Concern for Eternal
Despite higher revenue and profit, Eternal’s latest results show why growth alone is not enough to measure financial performance.
Total expenses rose to ₹24,166 crore in Q2 FY27 from ₹13,813 crore in the corresponding quarter last year. Reuters reported that higher delivery, employee and depreciation costs weighed on earnings. Net profit of ₹125 crore also fell short of the analyst consensus reported ahead of the results.
The distinction between revenue, operating earnings and net profit matters. Revenue measures income generated by business operations, while net profit reflects what remains after recognised expenses, interest, taxes and other relevant items.
Eternal’s consolidated adjusted EBITDA increased 197% year-on-year to ₹666 crore. EBITDA is an operating performance measure that excludes interest, taxes, depreciation and amortisation. Adjusted EBITDA makes further adjustments specified by the company, so it should not be treated as identical to statutory net profit or cash generated by the business.
Investors need to examine these measures together. Higher adjusted EBITDA can indicate improving operating performance, but rising costs and a profit figure below market expectations may still raise questions about the pace and quality of growth.
For the wider food delivery industry, the central challenge is to increase order volumes while controlling the cost of serving each order.
What Eternal’s Results Mean for India’s Food Delivery Market
Eternal’s performance reflects a broader shift in Indian consumer behaviour. Customers increasingly use digital platforms not only to order restaurant meals but also to purchase groceries and household necessities. Yet the economics of these services differ.
Food delivery depends on restaurant selection, order frequency, delivery availability and customer retention. Quick commerce relies more heavily on inventory management, local fulfilment networks and the ability to deliver enough orders from each store.
For smaller cities, these business models could bring wider product choices and new employment opportunities. At the same time, their long-term impact will depend on consumer purchasing power, delivery costs, competition from local shops and the ability of platforms to maintain service standards.
The results also highlight why companies may expand aggressively even when short-term profitability remains under pressure. Building a network, acquiring customers and increasing repeat purchases can support future growth, but these investments must eventually generate sustainable returns.
Eternal’s September-quarter performance is therefore a mixed signal. Revenue, food delivery order value and quick commerce activity grew substantially, while expenses remained high and reported net profit missed analyst expectations.
For the industry, the next test is whether companies can turn expanding customer demand into consistent profits without relying excessively on discounts or costly expansion.
Key Takeaways
- Eternal reported ₹125 crore in consolidated net profit for Q2 FY27, up 92.3% year-on-year.
- Revenue from operations increased 77.6% to ₹24,138 crore, while total expenses climbed approximately 75%.
- Zomato’s food delivery net order value rose 21.5%, while Blinkit’s quick commerce net order value increased 79.3%.
- Future performance will depend on controlling operating costs, improving unit economics and sustaining customer demand as competition intensifies.
Frequently Asked Questions
1. What was Eternal’s profit in Q2 FY27?
Eternal reported consolidated net profit of ₹125 crore for the quarter ended September 30, 2026, compared with ₹65 crore in the same quarter of the previous financial year.
2. How much did Eternal’s revenue increase?
Revenue from operations rose 77.6% year-on-year to ₹24,138 crore from ₹13,590 crore in Q2 FY26.
3. How did Zomato and Blinkit perform during the quarter?
Zomato’s food delivery business recorded net order value of ₹11,445 crore, up 21.5% year-on-year. Blinkit’s net order value increased 79.3% to ₹20,940 crore.
4. Why is Eternal’s profit growth important for India’s food delivery industry?
The results illustrate how digital platforms are expanding their customer base and order volumes while managing substantial delivery, staffing and infrastructure costs. Sustained profitability will depend on whether revenue growth can translate into consistent earnings.
