Eternal, the parent company of Zomato and Blinkit, is likely to report robust revenue growth for the September quarter (Q2FY26), driven by strong growth in the quick commerce unit and continuing growth in food delivery. Despite increasing growth, analysts caution that profitability may be impacted.
Brokerages anticipate that Eternal's consolidated revenue for Q2FY26 will increase between 120-137% YoY, primarily as a result of Blinkit's rapid expansion and sustained demand in the food delivery vertical.
Forecasts suggest that total revenue would range between Rs. 8,480 crore and Rs. 12,170 crore, depending on Blinkit's share in the overall growth.
Morgan Stanley remains the most positive, estimating the revenue at Rs. 12,170 crore, meaning a growth of 137.3% YoY and 60.9% QoQ due to order volumes and favorable business at Blinkit.
BofA Securities and Bonanza have conservative projections for revenue at Rs. 8,480 crore and Rs. 8,600 crore, respectively, on the back of higher order frequency and geographic penetration.
Although revenue growth seems to be strong, Eternal's net profit is expected to decline by 70-71% YoY primarily as a result of cost pressures combined with significant marketing expenditures as part of its quick commerce initiative.
Eternal’s food delivery business continues to perform steadily, supported by rising monthly transacting users and stable average order values.
BofA anticipates Gross Order Value (GOV) for the segment to reach Rs. 11,340 crore, which is a 17% YoY increase. Morgan Stanley predicts GOV growth of 15.6% YoY with approximately 23.9 million active users.
Food delivery adjusted EBITDA margins are expected to remain flat at 4.9%, in line with last quarter. However, Blinkit continues to be the company's growth driver, as analysts expect another solid quarter.
BofA has estimated Blinkit’s GOV at Rs. 14,590 crore, a 24% increase QoQ, while Morgan Stanley estimated Net Order Value at Rs. 74.4 billion, or 143.7% YoY increase.
This segment had several characteristics that made it a success with its shift to a first-party inventory model that built better delivery control and customer experience.
Despite the rapid growth, analysts caution that Blinkit's profitability continues to be safe under pressure due to high competition from Zepto and Swiggy Instamart. High promotional expenses, logistics costs, and rider incentives are putting pressure on margins.
Eternal's share price reached a 52-week peak of Rs. 360.70 on the BSE ahead of the results, indicating the investors' positive view of Blinkit’s development path.
Analysts believe that the company's concentration on scale, unit economics, and platform integration will position it for long-term growth in India's rapidly changing quick commerce and food delivery ecosystem.