Q3 2026 · NSE · Oct 21, 2026

ETERNAL Segments Made Rs. 1,014 Crore, but Investment Income Carried the Profit

Eternal's five segments earned a record Rs. 1,014 crore in Q2 FY27, but the group's Rs. 323 crore pre-tax profit includes Rs. 351 crore of other income. Depreciation (Rs. 625 crore) was the biggest cost step, tax booked took 61% of pre-tax profit, and working capital (Rs. 1,463 crore) was the biggest part of the Rs. 1,813 crore cash fall.

Where the Segments' Profit Went

ETERNAL share price against profit before tax and its margin, last 12 quarters ETERNAL share price against profit before tax and its margin, last 12 quarters. One graph by quarter: bars are the quarter's profit before tax in Rs. crore, with two lines over them, the share price at quarter-end and the profit before tax margin. Q4 2023: share price Rs. 124, profit before tax 124, margin 3.8%; Q1 2024: share price Rs. 182, profit before tax 161, margin 4.5%; Q2 2024: share price Rs. 201, profit before tax 239, margin 5.7%; Q3 2024: share price Rs. 273, profit before tax 237, margin 4.9%; Q4 2024: share price Rs. 278, profit before tax 124, margin 2.3%; Q1 2025: share price Rs. 202, profit before tax 97, margin 1.7%; Q2 2025: share price Rs. 264, profit before tax 88, margin 1.2%; Q3 2025: share price Rs. 326, profit before tax 129, margin 0.9%; Q4 2025: share price Rs. 278, profit before tax 170, margin 1.0%; Q1 2026: share price Rs. 229, profit before tax 228, margin 1.3%; Q2 2026: share price Rs. 265, profit before tax 272, margin 1.3%; Q3 2026: share price Rs. 320, profit before tax 323, margin 1.3%. Share price at quarter-end (Rs., left axis) Profit before tax margin, % (right axis) Profit before tax for the quarter (Rs. crore; bars from zero, values in the bottom row) Rs. 200 Rs. 300 2% 4% 6% 124 161 239 237 124 97 88 129 170 228 272 323 Rs. 124 3.8% Q4 2023 Rs. 182 4.5% Q1 2024 Rs. 201 5.7% Q2 2024 Rs. 273 4.9% Q3 2024 Rs. 278 2.3% Q4 2024 Rs. 202 1.7% Q1 2025 Rs. 264 1.2% Q2 2025 Rs. 326 0.9% Q3 2025 Rs. 278 1.0% Q4 2025 Rs. 229 1.3% Q1 2026 Rs. 265 1.3% Q2 2026 Rs. 320 1.3% Q3 2026 Profit

Over these 12 quarters: share price Rs. 124 to Rs. 320 (+159%); profit before tax 124 to 323 Rs. crore; profit before tax margin 3.8% to 1.3%. One graph in actual numbers: bars are the quarter's profit before tax, over them the share price at quarter-end (left axis) and the profit before tax margin (right axis); each line is fitted to its own range, so read the timing, not the heights. Prices are adjusted for splits.

Eternal's five segments earned a record Rs. 1,014 crore in Q2 FY27, but the group's Rs. 323 crore profit before tax is less than the Rs. 351 crore of other income (mainly returns on its investments) inside it: without that income the group lost Rs. 28 crore before tax.

Eternal Limited (formerly Zomato) reported net profit of Rs. 125 crore, nearly double the Rs. 65 crore of a year earlier, on revenue of Rs. 24,138 crore, up 78%. Depreciation is the largest cost between segment and group profit, tax then takes more than half of what is left, and working capital is the largest part of a fall in cash.

Rs. 691 crore of net costs sit between segment profit and group profit

The segments' Rs. 1,014 crore is profit before depreciation, share-based pay, finance costs and other income, so Rs. 691 crore of net costs separate it from the group's Rs. 323 crore profit before tax. Depreciation and amortisation is the largest, up 66% from a year earlier, then share-based pay (the cost of employee share options) up 51% and finance costs up 80%; other income (Rs. 351 crore, mainly returns on the company's investments, more than the group's profit before tax) was flat. The company's own measure, Adjusted EBITDA», which rose 197% from a year earlier, also takes out the Rs. 348 crore of rent paid on leases, which the segments' Rs. 1,014 crore does not (the Segments section below sets out every step).

Tax takes 61% of group profit because the parent's old losses will be used up in FY27

The group booked Rs. 198 crore of tax expense on Rs. 323 crore of profit before tax, 61.3%, because the parent alone booked Rs. 214 crore on its own Rs. 855 crore of profit, more than the group's whole bill. The company explains in a note to its profit reconciliation that until FY26 it provided tax only on other income (mainly treasury income), and that the higher tax since Q1 FY27 is mostly provision on business income because the parent's carried-forward losses "will be fully utilized in FY27". Its subsidiaries, which hold Blinkit, Hyperpure and Going-out, "continue to carry accumulated business losses which will be set off against future profits in these businesses". In plain words, each company keeps its own losses, so what Blinkit and the others earn at segment level is largely absorbed by their own depreciation and costs (this post's reading of the note), while the parent now books full tax on its profit. Everything outside the parent, after consolidation adjustments, had a combined profit before tax of minus Rs. 532 crore and a tax credit of only Rs. 16 crore. The proof is in the year-on-year change: the group's tax expense rose Rs. 134 crore (64 to 198) and the parent's rose Rs. 134 crore (80 to 214), so the rest of the group's net credit was Rs. 16 crore a year ago too. This is expense, not cash: income taxes paid in the half, net of refunds, were Rs. 44 crore (see Beyond the Usual). The parent's own profit after tax fell 7.2% to Rs. 641 crore even though its pre-tax profit rose 10.9%, as its tax rate went from 10.4% to 25.0%. The group's rate has run at 49.6%, 40.0%, 23.7%, 66.2% and 61.3% over the last five quarters, and the letter gives no forecast of it.

Cash fell Rs. 1,813 crore, mostly working capital the company calls seasonal

The letter's cash balance, a figure it does not define, fell to Rs. 16,475 crore: working capital took Rs. 1,463 crore, and the letter's cash-burn line was Rs. 350 crore before that. The shareholder letter bridges the change: Adjusted EBITDA of Rs. 666 crore plus Rs. 202 crore of treasury income received, less Rs. 941 crore of capital spending (up 126% from Rs. 417 crore a year earlier) and Rs. 277 crore of other items, is the Rs. 350 crore burn line, the first since Q2 FY26's Rs. 61 crore; before the other items the gap is Rs. 73 crore (868 less 941). The letter blames a "seasonal increase in net working capital": "In quick commerce, we built inventory ahead of the festive season", and food delivery's quarter-end fell at a point in the weekly restaurant settlement cycle that "temporarily lowered payables". The "other items" are, per the letter, mostly mark-to-market moves on securities it holds ("accounting movements, not realised losses") and a tax payment.

The Prescription

Eternal should open Blinkit stores only as fast as it can turn the stock in them, and publish that turn. Group inventory rose from Rs. 2,181 crore in March to Rs. 4,262 crore in September, up 95%, while the Blinkit store count rose 22.6% (2,243 to 2,751): dividing all group inventory by Blinkit stores, that is about Rs. 1.55 crore a store against Rs. 0.97 crore six months ago (Hyperpure's stock is in the numerator, so this is a trend, not a store-level figure). The letter says it expects to cross 3,500 stores by March 2027 and its plans point to about 5,000 by March 2028, in a quarter when capital spending of Rs. 941 crore exceeded Adjusted EBITDA plus treasury income of Rs. 868 crore. At that pace the number that decides whether growth pays for itself is days of inventory, not stores opened, and a target for it belongs next to the store target.

Eternal should stop quoting one "cash balance" that a reader cannot find on its balance sheet. The balance sheet shows cash and equivalents of Rs. 467 crore, and the letter does not say which balance-sheet lines make up its Rs. 16,475 crore. A number that moved Rs. 1,813 crore in a quarter, partly on securities prices, should come with a reconciliation to the balance sheet each time.

Key Financial Metrics

ETERNAL net revenue, profit before tax and its margin, last 12 quarters (Rs. crore) ETERNAL net revenue, profit before tax and its margin, last 12 quarters (Rs. crore). In Rs. crore, with the profit before tax margin as a percent of net revenue. Q4 2023: net revenue 3,288, profit before tax 124, margin 3.8%; Q1 2024: net revenue 3,562, profit before tax 161, margin 4.5%; Q2 2024: net revenue 4,206, profit before tax 239, margin 5.7%; Q3 2024: net revenue 4,799, profit before tax 237, margin 4.9%; Q4 2024: net revenue 5,405, profit before tax 124, margin 2.3%; Q1 2025: net revenue 5,833, profit before tax 97, margin 1.7%; Q2 2025: net revenue 7,167, profit before tax 88, margin 1.2%; Q3 2025: net revenue 13,590, profit before tax 129, margin 0.9%; Q4 2025: net revenue 16,315, profit before tax 170, margin 1.0%; Q1 2026: net revenue 17,292, profit before tax 228, margin 1.3%; Q2 2026: net revenue 20,211, profit before tax 272, margin 1.3%; Q3 2026: net revenue 24,138, profit before tax 323, margin 1.3%. Net revenue Profit before tax Profit before tax margin (% of net revenue) 3,288 124 Q4 2023 3,562 161 Q1 2024 4,206 239 Q2 2024 4,799 237 Q3 2024 5,405 124 Q4 2024 5,833 97 Q1 2025 7,167 88 Q2 2025 13,590 129 Q3 2025 16,315 170 Q4 2025 17,292 228 Q1 2026 20,211 272 Q2 2026 24,138 323 Q3 2026 3.8% 4.5% 5.7% 4.9% 2.3% 1.7% 1.2% 0.9% 1.0% 1.3% 1.3% 1.3%

Rs. crore; margin is profit before tax as a percent of net revenue, per quarter.

Q2 FY27 (quarter ended September 30, 2026, limited review) against Q1 FY27 (quarter ended June 30, 2026) and Q2 FY26 (quarter ended September 30, 2025), consolidated, in Rs. crore, with US dollars at Rs. 95.93 to $1, the September 30, 2026 market rate, applied to all periods. Adjusted EBITDA is the company's own measure from its shareholder letter; the rest is from the filed results.

Metric Q2 FY27 Q1 FY27 QoQ Q2 FY26 YoY Why it moved
Revenue from operations Rs. 24,138 crore ($2,516.2M) Rs. 20,211 crore +19.4% Rs. 13,590 crore +77.6% Blinkit revenue +93.6% on a shift to owning stock; the letter puts like-for-like growth of group Adjusted Revenue at 58%, against 76.3% reported
Adjusted EBITDA (non-GAAP) Rs. 666 crore ($69.4M) Rs. 555 crore +20.0% Rs. 224 crore +197.3% Food delivery Rs. 627 crore, Blinkit Rs. 184 crore, the rest a net loss
Operating income (profit before tax) Rs. 323 crore ($33.7M) Rs. 272 crore +18.8% Rs. 129 crore +150.4% Includes Rs. 351 crore of other income; segment results rose Rs. 165 crore on the quarter, depreciation Rs. 79 crore
Net income (profit for the period) Rs. 125 crore ($13.0M) Rs. 92 crore +35.9% Rs. 65 crore +92.3% Tax rate 61.3% against 49.6% a year earlier
Free cash flow (first half, six months) Rs. (1,378) crore (-$143.6M) not filed n/a Rs. (750) crore Rs. 628 crore worse Operating cash flow Rs. 278 crore, less Rs. 1,656 crore spent on property, equipment and intangibles
Cash and cash equivalents (period end) Rs. 467 crore ($48.7M) Rs. 996 crore at March 31 -53.1% against March Rs. 431 crore +8.4% The statutory line only; see The Prescription for the letter's wider balance

Free cash flow here is operating cash flow less purchases of property, plant, equipment and intangibles, for the six months, because the cash-flow statement is filed for half years only; a single quarter is not disclosed. Over the trailing eight quarters (Q3 FY25 to Q2 FY27) revenue ran Rs. 5,405, 5,833, 7,167, 13,590, 16,315, 17,292, 20,211 and 24,138 crore, profit before tax Rs. 124, 97, 88, 129, 170, 228, 272 and 323 crore, and net income Rs. 59, 39, 25, 65, 102, 174, 92 and 125 crore. Net income is five times its Q1 FY26 low of Rs. 25 crore but is 0.5% of revenue; Blinkit's shift to owning stock began in Q1 FY26, so the Q2 FY26 column already includes owned-stock sales. Total comprehensive income, which adds unrealised moves on investments, was a loss of Rs. 311 crore (see Beyond the Usual).

Where Q3 2026's Revenue Went

Net revenue, and how much of it was left as operating profit and net income, in one view. Figures are the same standalone-quarter figures as the metrics table.

ETERNAL Q3 2026 revenue-to-profit flow Net revenue is the starting point. From net revenue, cost and deduction flows are shaded red, darkest to lightest by size, and profit before tax splits into tax & other items and net income, shown in green. Figures in Rs. crore and percent of net revenue, Q3 2026. Net revenue Rs. 24,138 crore · 100% Profit before tax — Rs. 323 crore · 1% Operating costs Rs. 23,815 crore · 99% Tax & other items — Rs. 198 crore · <1% Net income — Rs. 125 crore · <1%

Rs. crore, Q3 2026. Thin slices are drawn at a minimum height so they stay visible; the printed values and percentages are exact. Operating costs are net revenue less profit before tax; tax & other items are profit before tax less net income.

Key Operational Metrics

Q2 FY27, from the shareholder letter's quarterly disclosures

Arrow = the way the number moved against a year earlier. Green = good for Eternal, red = bad, grey = flat or not a clear good or bad.

  • Group B2C net order value (the value of orders after all discounts, across food delivery, Blinkit and Going-out): Rs. 35,644 crore, +53.9% year-on-year.
  • Food delivery net order value: Rs. 11,445 crore, +21.5% year-on-year, its fifth straight quarter of faster growth (13.1% in Q1 FY26).
  • Food delivery monthly transacting customers: 28.0 million, +16% year-on-year.
  • Food delivery Adjusted EBITDA margin: 5.5% of net order value, +0.2pp year-on-year (5.3% a year earlier), down from 5.6% in Q1.
  • Food delivery active delivery partners: 736 thousand a month, +32.6% year-on-year (555 thousand).
  • Blinkit net order value: Rs. 20,940 crore, +79.3% year-on-year, +22.2% on Q1.
  • Blinkit stores: 2,751, +51.5% year-on-year (1,816), after 308 net additions in the quarter.
  • Blinkit orders: 398.9 million, +79.1% year-on-year (222.7 million).
  • Blinkit order value per store per day: Rs. 9.02 lakh, +17.0% year-on-year (Rs. 7.71 lakh), so new stores are not diluting sales per store.
  • Blinkit average order value: Rs. 525, flat year-on-year (Rs. 524 a year earlier).
  • Blinkit contribution margin»: 5.3% of net order value, +0.7pp year-on-year (4.6%).
  • Blinkit Adjusted EBITDA margin: 0.9% of net order value, +2.2pp year-on-year (a loss margin of 1.3% a year earlier).
  • Going-out net order value: Rs. 3,259 crore, +58.0% year-on-year.
  • Going-out Adjusted EBITDA margin: -2.0% of net order value, +1.1pp year-on-year (a loss margin of 3.1%).
  • Hyperpure restaurants served: about 85,000, +37.1% year-on-year (62,000), per the letter.
  • The company's cash balance: Rs. 16,475 crore, -10.0% year-on-year (Rs. 18,314 crore), and Rs. 1,813 crore lower than in Q1.

Segments

Eternal reports five segments: India food ordering and delivery, Hyperpure supplies (B2B), Quick commerce (Blinkit), Going-out, and All other segments (a residual that the letter says holds Bistro and Nugget). The segment result is the company's own measure for each: profit before other income, share-based pay, finance costs and depreciation and amortisation. Revenue is from external customers.

India Food Ordering and Delivery

ETERNAL India Food Ordering and Delivery: segment revenue from operations, segment results and its margin, last 12 quarters (Rs. crore) ETERNAL India Food Ordering and Delivery: segment revenue from operations, segment results and its margin, last 12 quarters (Rs. crore). In Rs. crore, with the segment results margin as a percent of segment revenue from operations. Q4 2023: segment revenue from operations 1,712, segment results 258, margin 15.1%; Q1 2024: segment revenue from operations 1,739, segment results 281, margin 16.2%; Q2 2024: segment revenue from operations 1,942, segment results 321, margin 16.5%; Q3 2024: segment revenue from operations 2,012, segment results 349, margin 17.3%; Q4 2024: segment revenue from operations 2,072, segment results 432, margin 20.8%; Q1 2025: segment revenue from operations 2,054, segment results 439, margin 21.4%; Q2 2025: segment revenue from operations 2,261, segment results 465, margin 20.6%; Q3 2025: segment revenue from operations 2,485, segment results 518, margin 20.8%; Q4 2025: segment revenue from operations 2,676, segment results 547, margin 20.4%; Q1 2026: segment revenue from operations 2,737, segment results 549, margin 20.1%; Q2 2026: segment revenue from operations 3,100, segment results 621, margin 20.0%; Q3 2026: segment revenue from operations 3,396, segment results 647, margin 19.1%. Segment revenue from operations Segment results Segment results margin (% of segment revenue from operations) 1,712 258 Q4 2023 1,739 281 Q1 2024 1,942 321 Q2 2024 2,012 349 Q3 2024 2,072 432 Q4 2024 2,054 439 Q1 2025 2,261 465 Q2 2025 2,485 518 Q3 2025 2,676 547 Q4 2025 2,737 549 Q1 2026 3,100 621 Q2 2026 3,396 647 Q3 2026 15.1% 16.2% 16.5% 17.3% 20.8% 21.4% 20.6% 20.8% 20.4% 20.1% 20.0% 19.1%

Rs. crore; margin is segment results as a percent of segment revenue from operations, per quarter. Revenue is the segment revenue from operations (external customers); profit is the segment results (segment note; before other income, share-based payment, finance costs, D&A).

India food ordering and delivery earned Rs. 647 crore, up 24.9% from Rs. 518 crore a year earlier, on revenue of Rs. 3,396 crore, up 36.7%. Revenue rose 9.5% on Q1 and the segment result 4.2% (from Rs. 621 crore). The segment's margin on revenue is 19.1%, and it carries only an estimated Rs. 20 crore of the group's rent (see the comparison below), so it is the segment whose profit is closest to what reaches the group: Adjusted EBITDA is Rs. 627 crore, up 25%. The letter says the food delivery market can keep growing 20% or more a year for many years; order-value growth of 20.1% in Q1 and 21.5% in Q2 is back in that range.

Hyperpure Supplies (B2B Business)

ETERNAL Hyperpure Supplies (B2B Business): segment revenue from operations, segment results and its margin, last 6 quarters (Rs. crore) ETERNAL Hyperpure Supplies (B2B Business): segment revenue from operations, segment results and its margin, last 6 quarters (Rs. crore). In Rs. crore, with the segment results margin as a percent of segment revenue from operations. Q2 2025: segment revenue from operations 2,295, segment results -5, margin -0.2%; Q3 2025: segment revenue from operations 1,023, segment results 1, margin 0.1%; Q4 2025: segment revenue from operations 1,070, segment results 7, margin 0.7%; Q1 2026: segment revenue from operations 978, segment results 13, margin 1.3%; Q2 2026: segment revenue from operations 1,034, segment results 14, margin 1.4%; Q3 2026: segment revenue from operations 1,154, segment results 19, margin 1.6%. Segment revenue from operations Segment results Segment results margin (% of segment revenue from operations) 2,295 -5 Q2 2025 1,023 1 Q3 2025 1,070 7 Q4 2025 978 13 Q1 2026 1,034 14 Q2 2026 1,154 19 Q3 2026 -0.2% 0.1% 0.7% 1.3% 1.4% 1.6%

Rs. crore; margin is segment results as a percent of segment revenue from operations, per quarter. Revenue is the segment revenue from operations (external customers); profit is the segment results (segment note; before other income, share-based payment, finance costs, D&A). Starts at Q2 2025: earlier periods are not comparable.

Hyperpure's segment result rose to Rs. 19 crore from Rs. 1 crore a year earlier, its fifth straight positive quarter, on revenue of Rs. 1,154 crore, up 12.8%. Revenue is up 11.6% on Q1; the letter puts like-for-like growth at 22.7% and says Hyperpure now serves about 85,000 restaurants, up from 62,000. Adjusted EBITDA is Rs. 10 crore, 0.9% of revenue. It is the smallest of the three profitable segments.

Quick Commerce

ETERNAL Quick Commerce: segment revenue from operations, segment results and its margin, last 6 quarters (Rs. crore) ETERNAL Quick Commerce: segment revenue from operations, segment results and its margin, last 6 quarters (Rs. crore). In Rs. crore, with the segment results margin as a percent of segment revenue from operations. Q2 2025: segment revenue from operations 2,400, segment results -42, margin -1.8%; Q3 2025: segment revenue from operations 9,891, segment results 5, margin 0.1%; Q4 2025: segment revenue from operations 12,256, segment results 202, margin 1.6%; Q1 2026: segment revenue from operations 13,232, segment results 265, margin 2.0%; Q2 2026: segment revenue from operations 15,664, segment results 365, margin 2.3%; Q3 2026: segment revenue from operations 19,152, segment results 488, margin 2.5%. Segment revenue from operations Segment results Segment results margin (% of segment revenue from operations) 2,400 -42 Q2 2025 9,891 5 Q3 2025 12,256 202 Q4 2025 13,232 265 Q1 2026 15,664 365 Q2 2026 19,152 488 Q3 2026 -1.8% 0.1% 1.6% 2.0% 2.3% 2.5%

Rs. crore; margin is segment results as a percent of segment revenue from operations, per quarter. Revenue is the segment revenue from operations (external customers); profit is the segment results (segment note; before other income, share-based payment, finance costs, D&A). Starts at Q2 2025: earlier periods are not comparable.

Quick commerce (Blinkit) earned Rs. 488 crore, 48% of all segment profit, against Rs. 5 crore, 1% of that year's Rs. 413 crore, but an estimated Rs. 304 crore of rent (derived in the Segment Comparison) separates that from its Rs. 184 crore of Adjusted EBITDA. Revenue rose 93.6% to Rs. 19,152 crore and 22.3% on Q1; the segment's margin on revenue is 2.55% (2.33% in Q1). The letter now expects to cross 3,500 stores by March 2027 and reach about 5,000 by March 2028, up from a 3,000-store target, and says its mature cities already run above 5% Adjusted EBITDA margin; Blinkit as a whole earned 0.9% this quarter. Segment revenue includes the full value of goods Blinkit itself owns and sells, not only its commission, so on a like-for-like basis the letter puts revenue growth at 84%, against 93.6% reported and 79.3% for order value.

Going Out

ETERNAL Going Out: segment revenue from operations, segment results and its margin, last 8 quarters (Rs. crore) ETERNAL Going Out: segment revenue from operations, segment results and its margin, last 8 quarters (Rs. crore). In Rs. crore, with the segment results margin as a percent of segment revenue from operations. Q4 2024: segment revenue from operations 259, segment results -15, margin -5.8%; Q1 2025: segment revenue from operations 229, segment results -44, margin -19.2%; Q2 2025: segment revenue from operations 207, segment results -48, margin -23.2%; Q3 2025: segment revenue from operations 189, segment results -57, margin -30.2%; Q4 2025: segment revenue from operations 300, segment results -114, margin -38.0%; Q1 2026: segment revenue from operations 277, segment results -73, margin -26.4%; Q2 2026: segment revenue from operations 318, segment results -61, margin -19.2%; Q3 2026: segment revenue from operations 304, segment results -55, margin -18.1%. Segment revenue from operations Segment results Segment results margin (% of segment revenue from operations) 259 -15 Q4 2024 229 -44 Q1 2025 207 -48 Q2 2025 189 -57 Q3 2025 300 -114 Q4 2025 277 -73 Q1 2026 318 -61 Q2 2026 304 -55 Q3 2026 -5.8% -19.2% -23.2% -30.2% -38.0% -26.4% -19.2% -18.1%

Rs. crore; margin is segment results as a percent of segment revenue from operations, per quarter. Revenue is the segment revenue from operations (external customers); profit is the segment results (segment note; before other income, share-based payment, finance costs, D&A). Starts at Q4 2024: earlier periods are not comparable.

Going-out's loss narrowed to Rs. 55 crore from Rs. 61 crore in Q1 and Rs. 57 crore a year earlier, its third narrower quarter in a row (Rs. 114 crore in Q3 FY26, Rs. 73 crore in Q4, Rs. 61 crore in Q1), on revenue of Rs. 304 crore. Revenue is up 60.8% year-on-year but 4.4% lower than in Q1, and Adjusted EBITDA is a loss of Rs. 64 crore, flat on Q1. The letter says the business is on track for the break-even it guided in January and that it still targets Rs. 28,000 crore of order value and Rs. 1,400 crore of Adjusted EBITDA by FY30. The same letter places this business, which it calls District, in the "medium-to-high risk zone" from AI agents that shop on a customer's behalf, because a table or a non-exclusive ticket "exists independently of our platform"; Eternal's board also approved, on October 21, 2026 (after the quarter ended), moving the business into one subsidiary (see Beyond the Usual).

All Other Segments

ETERNAL All Other Segments: segment revenue from operations, segment results and its margin, last 12 quarters (Rs. crore) ETERNAL All Other Segments: segment revenue from operations, segment results and its margin, last 12 quarters (Rs. crore). In Rs. crore, with the segment results margin as a percent of segment revenue from operations. Q4 2023: segment revenue from operations 14.0, segment results -4.0, margin -28.6%; Q1 2024: segment revenue from operations 10.0, segment results -10.0, margin -100.0%; Q2 2024: segment revenue from operations 15.0, segment results 1.0, margin 6.7%; Q3 2024: segment revenue from operations 4.0, segment results 2.0, margin 50.0%; Q4 2024: segment revenue from operations 4.0, segment results 1.0, margin 25.0%; Q1 2025: segment revenue from operations 1.0, segment results -16.0, margin -1,600.0%; Q2 2025: segment revenue from operations 4.0, segment results -45.0, margin -1,125.0%; Q3 2025: segment revenue from operations 2.0, segment results -54.0, margin -2,700.0%; Q4 2025: segment revenue from operations 13.0, segment results -47.0, margin -361.5%; Q1 2026: segment revenue from operations 68.0, segment results -60.0, margin -88.2%; Q2 2026: segment revenue from operations 95.0, segment results -90.0, margin -94.7%; Q3 2026: segment revenue from operations 132.0, segment results -85.0, margin -64.4%. Segment revenue from operations Segment results Segment results margin (% of segment revenue from operations) 14.0 -4.0 Q4 2023 10.0 -10.0 Q1 2024 15.0 1.0 Q2 2024 4.0 2.0 Q3 2024 4.0 1.0 Q4 2024 1.0 -16.0 Q1 2025 4.0 -45.0 Q2 2025 2.0 -54.0 Q3 2025 13.0 -47.0 Q4 2025 68.0 -60.0 Q1 2026 95.0 -90.0 Q2 2026 132.0 -85.0 Q3 2026 -28.6% -100.0% 6.7% 50.0% 25.0% -1,600.0% -1,125.0% -2,700.0% -361.5% -88.2% -94.7% -64.4%

Rs. crore; margin is segment results as a percent of segment revenue from operations, per quarter. Revenue is the segment revenue from operations (external customers); profit is the segment results (segment note; before other income, share-based payment, finance costs, D&A).

All other segments lost Rs. 85 crore, against Rs. 90 crore in Q1 and Rs. 54 crore a year earlier, on revenue of Rs. 132 crore (Rs. 95 crore in Q1). The letter says this residual holds Bistro and Nugget and that its Adjusted EBITDA loss narrowed to Rs. 91 crore from Rs. 94 crore in Q1; the loss is 57% larger than a year ago (Rs. 54 crore) and is now the group's biggest drag on the segment measure, ahead of Going-out's Rs. 55 crore.

Segment Comparison

Segment Revenue, Q2 FY27 (YoY) Segment result Q2 FY27 Q1 FY27 Q2 FY26 Adjusted EBITDA Q2 FY27 Segment result less Adjusted EBITDA (derived: rent on leases)
India food ordering and delivery Rs. 3,396 crore (+36.7%) Rs. 647 crore Rs. 621 crore Rs. 518 crore Rs. 627 crore Rs. 20 crore
Hyperpure Rs. 1,154 crore (+12.8%) Rs. 19 crore Rs. 14 crore Rs. 1 crore Rs. 10 crore Rs. 9 crore
Quick commerce Rs. 19,152 crore (+93.6%) Rs. 488 crore Rs. 365 crore Rs. 5 crore Rs. 184 crore Rs. 304 crore
Going-out Rs. 304 crore (+60.8%) Rs. (55) crore Rs. (61) crore Rs. (57) crore Rs. (64) crore Rs. 9 crore
All other segments Rs. 132 crore (not meaningful) Rs. (85) crore Rs. (90) crore Rs. (54) crore Rs. (91) crore Rs. 6 crore
Total Rs. 24,138 crore (+77.6%) Rs. 1,014 crore Rs. 849 crore Rs. 413 crore Rs. 666 crore Rs. 348 crore

The last column is derived. The company defines Adjusted EBITDA as EBITDA plus share-based pay less "rental paid for the period pertaining to 'Ind AS 116 leases'" (Ind AS 116 is the accounting rule that moves rent off the profit-and-loss line and into depreciation and interest), and the segment result, by the definition of the segment note, is EBITDA plus share-based pay. The difference per segment therefore should equal that segment's rent, and the five differences add to exactly the Rs. 348 crore of rent the letter itself reports (Rs. 294 crore in Q1, Rs. 189 crore a year earlier); the company does not publish rent by segment, so the split is this post's inference, and it puts 87% of the group's rent in Blinkit.

Not attributed to any segment

The table starts from each segment's result, the measure the segment note reports, and shows every line the note and the letter's reconciliation list between the segments' total and the group's profit (Rs. crore, three months).

Step Q2 FY27 Q1 FY27 Q2 FY26
India food ordering and delivery 647 621 518
Hyperpure 19 14 1
Quick commerce 488 365 5
Going-out (55) (61) (57)
All other segments (85) (90) (54)
Total segment results 1,014 849 413
Other income, not attributed to any segment 351 375 352
Share-based payment expense, not attributed to any segment (262) (255) (174)
Finance costs, not attributed to any segment (155) (151) (86)
Depreciation and amortisation, not attributed to any segment (625) (546) (376)
Profit before tax 323 272 129
Tax expense (198) (180) (64)
Profit for the period 125 92 65
Memo: rent on Ind AS 116 leases, taken out of the segment total in Adjusted EBITDA (348) (294) (189)
Memo: Adjusted EBITDA 666 555 224

Not attributed to any segment is the net Rs. 691 crore (351 less 262, 155 and 625) that the segment note keeps out of every segment's result: the group's other income, its employee share-option cost, its borrowing cost and all of its depreciation and amortisation, including on leased assets; the segments' Rs. 1,014 crore is therefore Rs. 691 crore above the group's profit before tax. The filing does not split depreciation by segment or between owned and leased assets.

Beyond the Usual

Disputed GST rose to Rs. 553 crore as new show-cause notices were added

The GST note now lists Orders of Rs. 420 crore (October 2019 to March 2022, all states) and Rs. 14 crore (Andhra Pradesh, April 2022 to March 2024), plus show-cause notices of Rs. 119 crore for April 2022 to March 2023 across multiple states: Rs. 553 crore in all. Last quarter's note listed the same two Orders and a single Rs. 13 crore Gujarat notice for that year, Rs. 447 crore in all, so the disputed amount is up Rs. 106 crore (23.7%). The notices demand GST on the delivery charges collected from customers on behalf of delivery partners, plus interest and penalties. The company says it has "a strong case on merits" on independent expert advice; the note does not mention a provision either way, and the auditor again draws attention to the note without qualifying its conclusion.

Profit of Rs. 125 crore came with a total comprehensive loss of Rs. 311 crore

Other comprehensive income, the changes in the value of investments that do not pass through profit, was a loss of Rs. 436 crore: Rs. 323 crore on equity investments carried at fair value» and Rs. 154 crore on debt instruments, partly offset by Rs. 38 crore of tax. Q1's was a loss of Rs. 5 crore, so the first half shows a total comprehensive loss of Rs. 224 crore against a profit of Rs. 217 crore. The letter calls its securities moves "accounting movements, not realised losses" and says it holds the debt instruments to maturity; neither the results nor the letter names the equity investments behind the Rs. 323 crore.

The subsidiaries not reviewed by their auditors lost Rs. 132 crore, more than the group's whole profit

The auditor's report says the consolidated results include the financial information of 17 subsidiaries and 1 trust "which have not been reviewed by their auditors", supplied by management; they carry assets of Rs. 2,757 crore, revenue of Rs. 248 crore and a loss after tax of Rs. 132 crore for the quarter (Rs. 227 crore for six months), against Rs. 215 crore of revenue and a Rs. 95 crore loss in Q1. That loss is larger than the group's Rs. 125 crore net profit. The auditor reports that, per management, the information "is not material to the Group"; the loss is 39% wider than Q1's.

The letter opens with an AI product, dark.ai, that no segment or note mentions

The first answer in the shareholder letter is about dark.ai, which the answer, attributed to Deepinder in the letter, describes as an AI he can talk to "without being judged, without any fear, and without leaving a trace", on "fine-tuned frontier open-weight models, running inside our own infrastructure" with end-to-end encryption, used internally "for a few months" and launching globally "hopefully within 2026". The letter does not say which legal entity runs it, what it costs, or whether it will become a segment, and the filed results and notes do not mention it; any cost is inside the segments' and group's figures above, unidentified.

The parent lent its subsidiaries Rs. 3,040 crore in six months, 3.6 times a year earlier

Eternal's standalone cash-flow statement shows loans given to subsidiaries of Rs. 3,040 crore in the first half of FY27 (Rs. 845 crore in the first half of FY26), loans repaid of Rs. 525 crore, and a further Rs. 185 crore invested in subsidiaries (Rs. 100 crore). Loans on the standalone balance sheet are Rs. 3,746 crore (Rs. 1,700 crore non-current and Rs. 2,046 crore current) against Rs. 1,229 crore at March 31, all non-current then. These loans cancel out in the group accounts, so they do not show in consolidated cash flow; the filing does not say which subsidiaries received them, and the filing does not say what funded them. The parent's own operating cash flow for the half was Rs. 2,442 crore (helped by Rs. 1,207 crore released from other financial assets), yet its cash and equivalents still fell Rs. 451 crore to Rs. 255 crore.

Tax booked this half is mostly still unpaid

Current tax expense for the first half is Rs. 332 crore, but the consolidated cash-flow statement shows income taxes paid, net of refunds, of only Rs. 44 crore, and net current tax liabilities rose to Rs. 276 crore from Rs. 15 crore at March. The letter says Q1 had the benefit of a tax refund and Q2 included a tax payout, so, on this post's reading, the cash cost of the higher tax rate is still arriving and is a call on the cash balance above.

Going-out India moves to a subsidiary at 16 times its net worth

Eternal's board approved a business transfer agreement to move the Going-out India business to its wholly-owned subsidiary Zomato Entertainment Private Limited (ZEPL) by slump sale», for cash of about Rs. 130.76 crore paid by ZEPL to Eternal, subject to adjustments. The business had revenue of Rs. 587 crore in FY26 (5.39% of standalone revenue) and net worth of Rs. 8 crore at March 31, 2026 (0.02% of standalone net worth), so the price is about 16 times its net worth. The deal is a related-party transaction, valued under Rule 53 of the Income-tax Rules, 2026 and described as at arm's length, and is expected to close within 30 days; the Going-out businesses held in two other subsidiaries, Orbgen Technologies and Wasteland Entertainment, will also be consolidated into ZEPL, with the boards giving in-principle approval to evaluate how. The filing says the entire economic interest stays with Eternal, so on this post's reading the Rs. 130.76 crore moves between group companies and cancels out in the group accounts, and the multiple of net worth is a transfer price, not a market one. The standalone note says it has no effect on this quarter's results; the filing does not say how the difference over net worth will be booked or taxed in the parent's next accounts.

A share swap turns Adonmo into a 4.4% stake in Mygate

Eternal sells its Adonmo shares, an ambient digital advertising business in which it invested Rs. 112 crore in January 2022, to Vivish Technologies (Mygate, a gated-community technology platform) in exchange for Mygate shares valued at about Rs. 156 crore, 39% above cost, with no cash changing hands. It holds 5.4% of Mygate on a fully diluted basis after the swap and expects about 4.4% once Adonmo and Mygate merge; Mygate's turnover was Rs. 229 crore in FY26, up from Rs. 171 crore and Rs. 96 crore in the two years before. The company says the buyer is not a related party, and the deal is subject to definitive agreements, with completion expected by December 5, 2026.

Target Valuation Range

Eternal is richer than Swiggy and GoTo on revenue, at 3.57x against about 2.5x and 2.63x, though DoorDash (about 4.8x) is dearer on that measure. On trailing Adjusted EBITDA the gap is far wider, about 138x against about 24x for DoorDash and about 16.5x for GoTo on guidance, because Eternal's Adjusted EBITDA of Rs. 2,014 crore is small against Rs. 77,956 crore of revenue; the market is paying for profit that is not there yet.

In plain words: market capitalisation is the share price times the number of shares, and enterprise value (EV) is what the market says the whole business is worth, which is market capitalisation less the cash it holds (Eternal's balance sheet shows no borrowings line; its lease liabilities are not added because Adjusted EBITDA is already after rent). EV/Revenue» and EV/Adjusted EBITDA» divide that by a year of revenue or of profit so that companies of different sizes can be compared; a high EV/Adjusted EBITDA means the market is paying for profit that is not there yet.

Company (latest post) Period and basis EV/Revenue EV/Adjusted EBITDA
Eternal (this post) Q2 FY27, September 30, 2026 close; EV = market cap less the letter's cash balance of Rs. 16,475 crore; trailing four quarters (Q3 FY26 to Q2 FY27) of revenue (Rs. 77,956 crore) and Adjusted EBITDA (Rs. 2,014 crore) 3.57x ~138x (trailing)
Swiggy Q1 FY27, June 30, 2026 close; market cap over trailing twelve months of revenue, no EV built ~2.5x not in that post
GoTo Q2 2026, June 30, 2026 close; EV = market cap + total liabilities - cash; trailing twelve months of net revenue; the EBITDA multiple is on the FY2026 guidance midpoint, not trailing 2.63x ~16.5x (on guidance)
DoorDash Q2 2026, June 30, 2026 close; EV = market cap - cash and investments + convertible notes; trailing twelve months ~4.8x ~24x

On revenue Eternal (3.57x) is priced above Swiggy (about 2.5x) and GoTo (2.63x) and below DoorDash (about 4.8x); on trailing Adjusted EBITDA (about 138x) it is priced far above DoorDash (about 24x) and GoTo (about 16.5x on guidance), because its Adjusted EBITDA of Rs. 2,014 crore is small against Rs. 77,956 crore of revenue. The comparison is not exact: the companies differ in country, growth, business mix and period (Swiggy's September quarter is not covered yet, so its figure is from June), and their EVs and EBITDA measures are built differently, as the table says. Eternal's own multiple on the Q1 post's basis (market cap over trailing revenue, no EV) was 3.61x; on that basis Q2 is 294,720 / 77,956 = 3.78x, up. No Q1 enterprise value exists because Q1 had no balance sheet, so the EV-based 3.57x has no prior comparison. GoTo's 2.63x is on all issued shares (2.33x on shares held by owners).

Eternal's paid-up equity share capital is Rs. 921 crore at Rs. 1 face value, so the post uses about 921 crore shares, the point-in-time count at September 30, 2026 rather than a weighted average; it is rounded to the nearest crore shares, a rounding of about 0.05%. These are issued shares: the consolidated balance sheet shows no deduction for shares held by the employee trust it consolidates, and the filing does not say how many it holds; non-controlling interests are minus Rs. 7 crore and are not added. The stock closed September at Rs. 320.00, up 20.9% from Rs. 264.60 at the end of June, and within the two years to September 2026 ranged from a low of Rs. 201.70 (March 2025) to a high of Rs. 328.10 (August 2026), month-end closes. No stock split falls in that window, so these are nominal prices.

Market cap to enterprise value Q2 FY27
Share price (September 30, 2026 close) Rs. 320.00
Shares outstanding ~921 crore
Market capitalization Rs. 2,94,720 crore ($30.72B)
Less: cash balance per the shareholder letter Rs. 16,475 crore
Enterprise value Rs. 2,78,245 crore ($29.0B)

The cash in the table is the letter's own Rs. 16,475 crore, not the balance sheet's Rs. 467 crore of cash and equivalents shown above; the table's cash basis is the one used for the enterprise value above. On the same basis the P/B (market cap over owners' equity of Rs. 31,275 crore) is 9.4x and the price over the last four quarters' net income of Rs. 493 crore is about 598 times.

Eternal Limited's (formerly known as Zomato Limited) unaudited consolidated and standalone financial results for the quarter and half year ended September 30, 2026, with the independent auditor's limited review reports (Deloitte Haskins & Sells), the board outcome letter dated October 21, 2026, and the company's shareholders' letter dated October 21, 2026.