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Eternal Limited Q3FY26 Results: Quick Commerce Turns Profitable!

Lesson 203/323 | Study Time: 20 Min

Course: Quarterly Result Updates & Analysis

Eternal Limited Q3FY26 Results: Quick Commerce Turns Profitable!

Eternal Limited (formerly Zomato Limited) has delivered a landmark performance for Q3FY26, marked by its quick commerce arm, Blinkit, and its B2B supplies business, Hyperpure, reaching Adjusted EBITDA breakeven for the first time. This quarter represents a significant shift as the company's "inventory-led" model in quick commerce begins to reflect in the headline scale.

Section 1: The Financial Growth Table (Consolidated)

Metrics (INR Crores)	Q3FY26 (Current)	Q3FY25 (YoY)	Q2FY26 (QoQ)	YoY Growth %	QoQ Growth %
Revenue from Operations	16,315	5,405	13,590	201.8%	20.1%
Adjusted Revenue*	16,692	5,746	13,968	190.5%	19.5%
Operating Profit (EBITDA)	368	207	239	77.8%	53.9%
Adjusted EBITDA	364	285	224	27.7%	62.5%
Net Profit (PAT)	102	59	65	72.9%	56.9%
EPS (INR)	0.11	0.06	0.07	83.3%	57.1%

Segmental Revenue & Contribution (Q3FY26)

| :--- | :--- | :--- | :--- | :--- |

| Food Delivery | 3,053 | 18.3% | 26.5% | 5.4% (of NOV) |

| Quick Commerce | 12,256 | 73.4% | 776.1% | 0.0% (Breakeven) |

| Hyperpure (B2B) | 1,070 | 6.4% | -36.0%** | 0.1% |

| Going-out | 300 | 1.8% | 15.8% | -4.7% (of NOV) |

*Adjusted Revenue includes customer delivery charges and platform fees.

**Hyperpure's external revenue decline is due to internal shifts to supporting the Blinkit inventory model.

Section 2: Performance Analysis & Concall Insights

Beat/Miss vs. Estimates

Revenue Beat: Topline revenue of ₹16,315 crore beat street estimates by approximately 1%.
Operating Beat: EBITDA of ₹368 crore was nearly 10% higher than analyst expectations.
PAT Miss: Net profit of ₹102 crore fell short of estimates by roughly 11%, likely due to higher expansion costs and tax provisions.

3 Critical Concall Insights

Quick Commerce Breakeven: Management clarified that the Blinkit breakeven was a natural progression of scale and supply chain efficiency, achieved despite "irrational" competitive intensity.
Leadership Transition: Albinder Singh Dhindsa (founder of Blinkit) will become the group CEO effective February 1, 2026, as Deepinder Goyal moves to the Vice Chairman role.
Store Expansion Guidance: The company missed its Q3 store target by ~70 stores due to pollution-related construction bans (GRAP) in Delhi-NCR. However, they remain on track for 3,000 stores by March 2027.

Section 3: Profitability & Valuation Suite

Profitability Metrics	Value	Valuation (As of Jan 30, 2026)	Value
ROE (FY25)	1.71%	Current CMP	274
ROCE (FY25)	2.66%	P/E Ratio (TTM)	~1,146x
Operating Margin	2.2%	Price to Book (P/B)	8.6x
Cash Balance	₹17,820 Cr	Debt-to-Equity	0.11

Section 4: Future Outlook & Trend Analysis

Despite a 79% decline in profit growth for H1FY26, the Q3 results show a significant trend reversal with sequential profit growth of 57%.

Growth Projections: Management expect Food Delivery NOV growth to trend toward 20% YoY. Quick commerce is projected to maintain a robust pace, with a potential to reach 4,000 stores if competition moderates.
Peer Comparison: Eternal (PE ~1,146x) continues to trade at a significant premium compared to traditional consumer peers, reflecting its high-growth tech status.

Conclusion

Eternal Limited has successfully navigated a difficult competitive landscape to bring its largest segment to profitability. While the valuation remains high, the massive cash reserves of ₹17,820 crore provide a strong cushion for the upcoming leadership transition.

Step 4: Valuation Analysis

Our internal Fair Value assessment, based on future cash flow projections and segment-wise EBITDA multiples, is now updated.

Check the detailed Fair Value report here: https://docs.google.com/spreadsheets/d/e/2PACX-1vSrP_szSc_bqCYFSTpgHt82SGnHnEkQDWFtdLxuZit9u7QWx46Fcf7YYzzB9S6TrN2aIg7MpTz_cl_t/pubhtml?gid=749202956&single=true

Disclosure: This analysis is for educational purposes only. I am an investor and mentor, not a SEBI-registered investment advisor. Stock market investments are subject to market risks;

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Piyush Patel

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