- Shares of Eternal, operator of Zomato, surged to a record high of Rs 372 each
- Eternal shares rose 22% in 14 sessions and 44% over six months since listing
- Q2FY27 food delivery gross order value grew 22%, outpacing Swiggy's 18% growth
Shares of Eternal, which operates online food delivery platform Zomato, were in demand on Wednesday, surging as much as 2.47% to hit a fresh all-time high of Rs 372 apiece.
Around 1:50 pm, the food aggregator's stock was trading 0.17% higher at Rs 363.60, while the BSE Sensex was up 0.85% at 81,779.
Eternal shares have gained 22% in the last 14 trading sessions and 44% over the past six months. The stock has rallied 223.48% since its listing at Rs 115.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
What's Driving Eternal Shares?
Growth in food delivery and quick commerce, along with improving profitability across businesses, has supported the stock's rally.
Eternal's food delivery gross order value (GOV) grew 22% year-on-year (YoY) in Q2FY27, ahead of Swiggy's 18% growth. Monthly transacting users increased 16%, while food delivery net order value (NOV) rose 21%. Therefore, the Management expects the business to sustain annual growth of over 20%, although margins are expected to remain flat over the next one to two years.
READ | SIP Inflows Fall To Rs 32,160 Crore In October; Equity MF Inflows Drop 14%
Blinkit recorded 79% growth in NOV, while its dark store network expanded to 2,751 outlets. Its take rate improved to 27.5%, and mature cities reported adjusted EBITDA margins of over 5%.
Eternal also plans to increase Blinkit's store count to more than 3,500 by March 2027 and around 5,000 by March 2028. CFO Akshant Goyal said the expansion would be funded through cash balances and profits from its food delivery and quick commerce businesses.
Hyperpure also turned adjusted EBITDA positive at Rs 10 crore, compared with a loss of Rs 5 crore a year ago. Its going-out business, District, recorded 58% growth in NOV and is expected to break even within four to six quarters.
Eternal Q2 Results: Profit Misses Estimates
Eternal reported a 92.3% YoY increase in consolidated net profit to Rs 125 crore in Q2FY27, compared with Rs 65 crore a year ago. However, profit missed the estimate of Rs 304 crore.
Revenue rose 77.6% to Rs 24,138 crore from Rs 13,590 crore, beating the estimate of Rs 23,447 crore. EBITDA increased to Rs 752 crore from Rs 239 crore, while EBITDA margin improved to 3.1% from 1.8%.
Blinkit remained the largest revenue contributor, with its segment revenue rising 93.6% to Rs 19,152 crore. India food ordering and delivery revenue increased 36.7% to Rs 3,396 crore.
Hyperpure reported revenue of Rs 1,154 crore, while revenue from the going-out business stood at Rs 304 crore.
The company also announced plans to consolidate its going-out business under a single subsidiary and restructure its investment in Adonmo through a share swap with Mygate.
Founder Deepinder Goyal also addressed the growing role of artificial intelligence (AI) in commerce, saying vertical commerce platforms could retain an advantage over super apps, including AI-driven ones.
READ | From 13% Down To Near Flat: How Nifty And Sensex Recovered From War-Time Losses
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
