Eternal Limited delivered remarkable first-quarter results with consolidated net profit surging 260% year-on-year to ₹92 crore in Q1FY26, compared to ₹25 crore in the corresponding period last year. However, the figure fell well below analysts' expectations of around ₹300 crore, making it the biggest disappointment in the earnings report. According to the company's unaudited financial results approved by the board on July 22, 2026, revenue from operations surged to ₹20,211 crore from ₹7,167 crore in Q1FY25, slightly ahead of Street estimates of ₹20,058 crore. The company's total income reached ₹20,586 crore with total expenses at ₹20,314 crore, resulting in profit before tax of ₹272 crore. The strong performance was driven by exceptional growth across the company's quick commerce and food delivery segments.
The standout achievement was Blinkit's remarkable turnaround to profitability, with the quick commerce business reporting EBIT of ₹365 crore compared to a loss of ₹42 crore a year ago. Management highlighted that adjusted EBITDA improved for the fifth consecutive quarter, with the platform adding 200 new stores during the quarter, taking the network to 2,443 stores. Quick commerce revenue soared to ₹15,664 crore from ₹2,400 crore a year earlier, with like-for-like (LFL) revenue growing 171% year-on-year and 44% quarter-on-quarter. The company noted that quick commerce now includes direct sales to customers on the Blinkit platform following a transition from a marketplace model, with Blinkit's input costs across select raw materials beginning to witness inflationary pressure. Management expressed confidence that quick commerce can ultimately generate EBIT margins of around 4% with adjusted EBITDA at the upper end of the 5-6% range.
The food delivery segment demonstrated strong recovery with revenue increasing 37% to ₹3,100 crore, while order value growth accelerated beyond 20% after four consecutive quarters of improvement. Food delivery EBITDA margins have now moved close to the upper end of the company's long-term guidance of 5-6%, with management indicating it does not see growth and margins as a trade-off. This represents a significant turnaround from previous quarters and positions the segment for continued healthy cash flow generation alongside the dominant quick commerce business.
The company's EBITDA reached ₹5.94 billion for the quarter, compared to ₹1.15 billion in the same period last year, with EBITDA margin expanding significantly to 2.94% from 1.60% year-on-year. Management struck a confident tone on competition, with Founder and CEO Deepinder Goyal stating that newer platforms are largely competing on price without creating new customer use cases, while Blinkit remains focused on building infrastructure and improving customer experience. The company reiterated its commitment to continued investment in Blinkit's expansion, having invested around ₹3,000 crore in capex over the past four years and intending to keep investing as long as returns remain attractive. Despite the earnings miss, most global brokerages retained bullish recommendations, with Jefferies maintaining its Buy rating and raising the target price to ₹415, citing quality growth matters more than market-share chasing.
A block trade of ₹26.20 crore was recorded on the NSE, involving approximately 937,206 shares at ₹279.55 per share, reflecting investor interest in the company's strong quarterly performance. The company's stock has shown positive momentum with historical returns of +125.71% over five years and +4.67% over one month. Management indicated that while Blinkit's input costs are facing inflationary pressure, this has not impacted production volumes, suggesting the company's ability to manage cost pressures effectively. The investment thesis increasingly centers on Blinkit's rapid scaling and profitability trajectory, with the June-quarter numbers reinforcing the company's position as a dominant quick commerce player despite mixed headline numbers.
