Eternal Limited Releases Q2FY26 Earnings Call Transcript, Discusses Blinkit Growth & Food Delivery
Eternal Limited released its Q2FY26 earnings call transcript, highlighting strong Blinkit growth driven by strategic investments and store expansion. Food delivery faces macro headwinds, while the District business expects steady growth. Overall, the company focuses on long-term growth and efficiency.
The announcement provides a comprehensive update on the company's Q2FY26 performance, strategic direction for its key business segments (Blinkit, Food Delivery, District), and future outlook, which is highly relevant for investors and analysts.
The company reported strong growth in its quick commerce segment (Blinkit) with continued investment for future expansion, and maintained long-term growth targets despite short-term headwinds in food delivery. Management expressed confidence in their strategy and operational efficiencies.
* Eternal Limited (formerly Zomato Limited) announced the release of the transcript for its Q2FY26 earnings conference call, which was conducted on October 16, 2025. The transcript is available on the company's website. * Key management participants included Akshant Goyal (CFO), Albinder Singh Dhindsa (Founder & CEO, Blinkit), and Kunal Swarup (Head, Corporate Development). * Quick Commerce (Blinkit): * The company observed a significant increase in Monthly Transacting Users (MTU) for Blinkit, driven by higher ad spends and investments, a trend expected to continue as long as customer acquisition costs (CAC) remain healthy and Lifetime Value (LTV) is positive. * New customer cohorts continue to break even at the Contribution Margin (CM) level in their first month. * The strategy is fueled by an expanded addressable market due to 1,800 stores, not competitive pressure. * The Net Order Value (NOV) to Gross Order Value (GOV) ratio decreased due to a changing product mix (festivals, general merchandise), with NOV now considered a more relevant metric. * Marketing spend is primarily focused on larger cities to address non-serviceability, but also significantly on emerging cities. CAC does not differ substantially across markets. * The transition to a 1P inventory model (80% now) has led to revenue growth, with full 1% margin accretion expected in 4-6 quarters. * Year-on-year NOV growth is projected to remain above 100% for the next 1-2 years. * Store expansion targets include 2,100 stores by the December quarter and 3,000 by March 2027, with over 70-75% of new stores in the top 10 cities. * The cost of expanding into smaller cities is manageable due to existing backend infrastructure. * Blinkit's positioning is customer-first, aiming to offer the best prices through operational efficiency. * Food Delivery: * Profitability improved due to an increase in platform fees, while growth was limited by macro headwinds and competition from quick commerce. * The full impact of changes in minimum order value is expected in the December quarter, with a slow uptick in growth anticipated in the near term. * The longer-term growth target of 20%+ remains, though the company expects around 15% year-on-year growth for the current financial year. * District Business: * Growth is expected to be around 30% year-on-year, with profitability in percentage terms improving, but absolute losses remaining around ₹60-70 crore in the near term. Losses are expected to improve in FY27. * Other Initiatives: * Losses in the 'Others' segment are mainly due to the expansion of the Bistro business, a 10-minute food delivery service, with updates expected next quarter.
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ETERNAL LIMITED filed this with the NSE as a statutory disclosure, categorised under concall transcript released. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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