Eternal Ltd, which runs businesses including <a href="https://www.mid-day.com/business/business-news/article/food-at-your-doorstep-to-get-costlier-as-zomato-increases-platform-fee-by-rs-2-4-per-order-23621821" target="_blank" rel="none noopener">Zomato</a> and Blinkit, on Wednesday reported a nearly four-fold jump in consolidated net profit at Rs 92 crore in the first quarter ended June 30, on the back of strong revenue growth of its quick commerce vertical.
The company had posted a consolidated net profit of Rs 25 crore in the corresponding quarter last fiscal, Eternal Ltd said in a regulatory filing.
Consolidated revenue from operations in the <a href="https://www.mid-day.com/business/business-news/article/reliance-industries-q1-fy27-results-revenue-jumps-25-per-cent-to-rs-3-11-lakh-crore-consolidated-profit-stands-at-rs-20946-crore-23640310" target="_blank" rel="none noopener">first quarter of FY27</a> stood at Rs 20,211 crore as compared to Rs 7,167 crore in the year-ago period, it added.
Total expenses in the reporting quarter were higher at Rs 20,314 crore as compared to Rs 7,433 crore in the year-ago period, the company said.
Food delivery business Zomato net order value (NOV) growth reached over 20 per cent YoY at Rs 10,769 crore, after four consecutive quarters of acceleration, company CFO Akshant Goyal said.
Quick commerce <a href="https://www.mid-day.com/news/india-news/article/blinkit-drops-10-minute-delivery-promise-amid-labour-ministry-pressure-23611905" target="_blank" rel="none noopener">Blinkit</a> NOV grew 86 per cent YoY to Rs 17,132 crore, while going-out, "District" NOV growth accelerated to 60 per cent YoY to Rs 3,218 crore, he added.
Commenting on the NOV growth of Blinkit, Eternal Group CEO Albinder Singh Dhindsa said, "It was largely seasonality, and the NOV growth was on expected lines. We continue to focus our efforts on our three pillars of long-term growth - assortment expansion, geographical expansion, and demand densification."
On Blinkit increasingly becoming more capital intensive with significant capex and net working capital, he said, "Quick commerce is not asset-light, unlike our other businesses. Today, we operate about 19 million sq ft of store and warehousing space across over 300 cities."
He further said, "We've invested Rs 3,000 crore capex over the past four years to build this network, and as we continue to expand, the investments will continue. This is the most critical building block of our business and also our biggest differentiator."
On the impact of the fuel and raw material price inflation on the business, Dhindsa said the company is not seeing any visible impact as of now.
"Input costs across select raw materials are beginning to witness some inflationary pressure but that has not impacted production volumes or supply from brands so far," he said, while adding that competitive intensity remains high, but has become more predictable.
Commenting on competition to Zomato from new players Toing and Ownly, Eternal Founder Deepinder Goyal said, "The impact has been limited. These platforms are offering the same restaurants, similar or longer delivery times, and lower menu prices funded by lower commissions and delivery fee - making the revenue gap even more unsustainable. There's no new use case being unlocked here."
The customer traction is purely price-driven, and price-driven traction without structural economics tends to resolve itself, he added.
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Consolidated revenue from operations in the first quarter of FY27 stood at Rs 20,211 crore as compared to Rs 7,167 crore in the year-ago period

Eternal Q1FY27: Net profit surges nearly four-fold to Rs 92 crore

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Consolidated revenue from operations during the first quarter of FY27 stood at Rs 20,211 crore as against Rs 7,167 crore in the year-ago period

Eternal Q1FY27 net profit jumps nearly four-fold to Rs 92 crore

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Home / Business / Business News / Article / Eternal Q1FY27 net profit jumps nearly four-fold to Rs 92 crore