- Consolidated profit jumped 73% YoY to ₹102 crore in Q3 FY26.
- Revenue more than tripled to ₹16,315 crore, driven by food delivery, quick commerce, and B2B supply.
- CEO Deepinder Goyal exits; Albinder Singh Dhindsa takes over – governance shift may affect strategy.
- Food‑delivery EBITDA margin hits an all‑time high of 5.4%.
- Quick commerce turns EBITDA positive for the first time.
- Going‑out vertical sees margin compression, while Hyperpure flips to positive EBITDA.
- Sector peers (Zomato, Swiggy, Tata) are recalibrating their growth models – watch for spill‑over effects.
You missed Eternal’s profit explosion—now you’re paying the price.
Eternal's Q3 FY26 Profit Explosion Explained
Eternal posted a consolidated profit of ₹102 crore for the December quarter, up 72.88% from the same period a year ago. Revenue surged to ₹16,315 crore, a 202% increase YoY, reflecting a robust recovery across its core verticals. Adjusted EBITDA climbed 28% YoY to ₹364 crore, underscoring operational leverage as fixed costs spread over a larger top line.
Why Food Delivery Margins Are Reaching New Heights
The food‑delivery segment recorded a net order value (NOV) of ₹25,732 crore, crossing the ₹1 lakh crore annualised threshold. Gross order value (GOV) rose 21.3% YoY, while the adjusted EBITDA margin—calculated as EBITDA divided by NOV—hit a record 5.4%. This margin expansion stems from higher commission rates, improved last‑mile efficiency, and a shift toward higher‑margin restaurant partners.
Definition: Adjusted EBITDA margin shows how much operating profit is generated per unit of sales after removing one‑off items; a rising margin signals better cost control and pricing power.
Quick Commerce Turnaround: A New Growth Engine
Quick commerce (Q‑Commerce) posted a staggering 121% YoY NOV growth, with like‑for‑like NOV up over 130%. The segment added 211 new stores, reaching 2,027 locations. Most importantly, adjusted EBITDA turned positive at ₹4 crore after a ₹156 crore loss in Q2, indicating the business is finally scaling profitably.
The surge follows GST reforms that lowered tax friction on small‑ticket orders and a strategic focus on hyper‑local fulfillment centers, which cut delivery times and boosted order frequency.
Going‑Out Vertical: Margin Pressure Explained
The “Going‑Out” vertical—covering dine‑in reservations, table‑booking, and on‑the‑go services—saw NOV rise 20% YoY, yet its adjusted EBITDA margin slipped to 4.7%, resulting in a ₹121 crore loss. Management attributes the decline to heavy investment in new categories and promotional spend to capture market share.
Hyperpure's First Positive EBITDA: What It Means
Hyperpure, Eternal’s B2B restaurant‑supply platform, grew 33% YoY and posted a modest ₹1 crore adjusted EBITDA profit, reversing a ₹5 crore loss. The turnaround is linked to higher per‑order basket sizes and better pricing leverage with wholesale suppliers.
Sector Landscape: How Tata, Swiggy, and Zomato Are Positioning
While Eternal rides a profit wave, competitors are in the midst of strategic recalibration. Tata’s “Food & Grocery” arm is expanding its own Q‑Commerce network, aiming for a 10% margin by FY27. Swiggy has launched “Swiggy Genie” to capture the last‑mile market, targeting a 4% EBITDA margin in 2026. Zomato, still led by Deepinder Goyal until February, is expected to maintain its aggressive discounting, which compresses margins but drives market share.
The common thread is a shift from pure volume growth to margin‑focused expansion. Investors should monitor whether Eternal can sustain its EBITDA‑margin improvements while peers chase similar efficiencies.
Historical Parallel: The 2022 Delivery Boom and Its Aftermath
In 2022, Indian food‑delivery platforms experienced a double‑digit revenue surge post‑pandemic, but profitability lagged due to high customer‑acquisition costs. By FY24, only the most disciplined players trimmed losses and posted modest margins. Eternal’s current trajectory mirrors the late‑stage of that cycle—rapid revenue scaling now paired with margin recovery, a pattern that historically precedes sustained earnings growth.
Investor Playbook: Bull vs. Bear Cases on Eternal
Bull Case: Continued margin expansion across food delivery and Q‑Commerce, successful integration of new CEO Albinder Singh Dhindsa, and positive cash flow generation by FY28. A potential upside of 30‑40% if EPS accelerates.
Bear Case: Margin pressure from the Going‑Out vertical, execution risk under new leadership, and heightened competition eroding pricing power. A downside scenario could see profit growth stall, dragging the stock 15‑20% lower.
Bottom line: Eternal’s Q3 numbers are a watershed moment, but the sustainability of profit upside hinges on execution discipline and sector dynamics.