Eternal Ltd. saw its shares jump as much as 15% to a new record high following a Q1 FY26 earnings report that highlighted significant revenue growth, particularly in its quick-commerce segment. The Indian e-commerce platform's quarterly revenue from quick commerce reached $278 million (24 billion rupees), more than double the figure from the previous year. Overall revenue from operations surged by 70.4% year-over-year to $869 million (7,167 crore rupees), and by 22.86% quarter-over-quarter.
Despite this strong top-line performance, Eternal's net income plummeted by 90% year-over-year to $3 million (25 crore rupees) from $30.6 million (253 crore rupees) in Q1 FY25, and was down 36% quarter-over-quarter. Analysts, however, were still impressed by the company's ability to drive sales amidst intense competition from new entrants like Amazon.com Inc. and Walmart Inc.'s Flipkart India Pvt. Adjusted EBITDA also fell by 42% year-over-year to $20.8 million (172 crore rupees).
The rapid growth of its quick commerce arm, Blinkit, was a key driver, with its gross order value (GOV) increasing by 140% year-over-year to $1.43 billion (11,821 crore rupees), surpassing that of the food delivery GOV for the first time. The decline in net profit was attributed to the expansion of Blinkit and associated marketing and discounting spends in new markets. The company noted that Blinkit's adjusted EBITDA loss for the April-June quarter was $19.6 million (162 crore rupees), compared to a $0.36 million loss in the same period last year, but expects margins to improve as newer dark stores mature and competitive intensity stabilizes.
The overall market for rapid delivery in India is experiencing a land-grab phase, with Amazon and Flipkart aggressively expanding their dark store networks, echoing concerns among analysts about sustained competitive pressure and potential margin sacrifices to maintain market share. Emkay analysts, for example, noted that the sector remains in a land-grab phase and that the entry of major players will keep competition elevated for years, although some point to Blinkit's superior unit economics as a potential advantage. Eternal's net order value (NOV) saw a 55% year-over-year increase and 16% quarter-over-quarter increase to $2.45 billion (20,183 crore rupees), with monthly transacting users more than doubling to 16.9 million.
