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Eternal Q2 Profit Jumps 92% to ₹125 Crore but Falls Short of Estimates
Sentiment: NeutralHigh Priority
What Happened?
Eternal's second-quarter profit rose 92.3% to ₹1.25 billion, but fell short of analyst expectations due to rising costs. Revenue surged 77.6% to ₹241.38 billion.
Key points
- Consolidated net profit reached ₹1.25 billion, up from ₹650 million a year ago.
- Analysts expected a profit of ₹2.71 billion, according to LSEG data.
- Eternal's revenue from operations increased to ₹241.38 billion, exceeding expectations of ₹239.21 billion.
- Total expenses rose to ₹241.66 billion, nearly matching revenue growth.
- Blinkit's net order value rose 79.3% year-on-year to ₹209.40 billion.
- Eternal added 308 Blinkit stores, bringing the total to 2,751, with plans for 5,000 stores by March 2028.
Key insights
- Eternal's ability to manage rising costs will be crucial for future profitability.
- The expansion of Blinkit may enhance market share but requires careful financial oversight.
- Investors may scrutinize Eternal's cost structure following this earnings report.
Why it matters
The profit increase indicates growth, but the shortfall in estimates raises concerns about cost management.
Entities
Eternal· CompanyBlinkit· BrandZomato· BrandDeepinder Goyal· PersonIndia· Country
Source
Business Standard
