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Eternal, which also operates food delivery platform Zomato, posts a consolidated net profit of Rs 92 crore for the quarter ended June 30.
Eternal Q1 Results.
Eternal Q1 Results: Food and grocery delivery firm Eternal reported a nearly four-fold jump in its first-quarter profit that still missed analyst estimates on Wednesday as intense competition and continued investments in quick-commerce business Blinkit weighed on profitability.
The Gurugram-based company, which also operates food delivery platform Zomato, posted a consolidated net profit of Rs 92 crore ($9.53 million) for the quarter ended June 30, below analysts’ estimate of Rs 258 crore, according to LSEG data.
Net profit nearly quadrupled from Rs 25 crore a year earlier.
Shares of Eternal turned volatile after the results, falling as much as 3.82% before reversing course to trade 0.54% higher by 3:21 p.m. IST.
Eternal’s results come as investors assess whether India’s quick-commerce boom can continue delivering rapid growth while becoming more profitable, amid aggressive expansion by rivals including Swiggy Instamart, Zepto, Flipkart Minutes and Amazon Now.
Analysts had expected Eternal’s food-delivery business to benefit from healthy order demand, higher advertising and platform-fee monetisation and operating leverage, while Blinkit was expected to sustain strong growth through higher order volumes and continued expansion of its dark-store network despite intense competition.
Revenue for the quarter ended June 30 rose more than 2.5 times to Rs 20,211 crore, compared with analysts’ estimate of Rs 20,439 crore, according to LSEG data.
India’s quick-commerce market has become increasingly competitive as companies accelerate investments to capture demand for rapid grocery and daily essentials deliveries, with investors closely watching whether companies can balance growth with profitability.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)
Eternal aims to balance growth and profitability by focusing on its Blinkit quick-commerce arm and Zomato food delivery business, while navigating intense competition.
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