Newsletter
Eternal announced a MyGate investment, entered the AI race with Dark.ai and reported strong revenue growth but its shares still fell after profit missed expectations.
First, a ₹156 crore acquisition: the company will acquire a 5.4% stake in MyGate through a share-swap deal valued at around ₹156 crore.
MyGate is a technology platform used by gated communities to manage visitors, deliveries, security and communication between residents.
Eternal will not pay cash for the stake. Instead, it will give MyGate shareholders some of the shares it owns in advertising technology company Adonmo.
The why: MyGate gives Eternal another entry point into urban households. Its apps already reach consumers through food delivery, groceries, restaurant bookings and events. MyGate adds residential communities to that list.
Deepi goes dark with AI: Deepinder Goyal is also taking Eternal beyond food and quick commerce.
The company plans to launch Dark.ai, a privacy-focused AI assistant, globally by the end of 2026.
Dark.ai is being designed for people who want to use AI without worrying that their conversations, research or business ideas could be accessed or retained by someone else.
Q2 earnings: Eternal also reported its Q2 FY27 earnings, with revenue and profit rising sharply.
However, the shares fell because the company’s profit was much lower than analysts had expected.
By the numbers:
- Net profit: ₹125 crore, up 92% YoY
- Revenue: ₹24,138 crore, up 78% YoY
- Total expenses: ₹24,166 crore, up 75% YoY
- Expected profit: around ₹250 crore
How the businesses performed:
- Blinkit: revenue jumped 93% to ₹19,152 crore
- Zomato food delivery: revenue grew 37% to ₹3,396 crore
- Hyperpure: revenue rose 13% to ₹1,154 crore
- District: revenue increased 61% to ₹304 crore
Blinkit is now Eternal’s largest revenue contributor by a wide margin, bringing in almost six times the revenue of the food-delivery business.
But rapid growth comes with a large bill. Material costs reached ₹14,602 crore, while delivery-related expenses increased 62% to ₹3,581 crore. Employee costs and advertising spending also climbed sharply.
