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Eternal’s Q1 was a wild ride, profit took a nosedive however the numbers were better than street estimates pushing the stock up 7%.
By the numbers:
- Revenue: ₹7,167 crore, up 70% YoY and 23% QoQ
- Net profit: ₹25 crore, down 90% YoY, and 36% QoQ
Worth noting: Blinkit revenue soared to ₹2,400 crore vs ₹942 crore YoY, surpassing food delivery in net order value for the first time.
The why: the profit dip was driven by a 77% spike in total expenses, hitting ₹7,433 crore for the quarter. The company is pouring cash into quick commerce expansion, opening 243 new Blinkit stores. More stores = more orders = more costs… and that hit the bottom line.
Zoom out: quick commerce is heating up. Zepto just raised fresh capital. Swiggy Instamart is doubling down. Amazon is testing grocery blitzes again. And everyone’s chasing faster deliveries and higher cart values.
Eternal’s strategy is clear, build Blinkit as the next engine, even if profits take a backseat. But with margins under pressure and rivals raising cash, the road ahead will be bumpy.
