Eternal Limited discusses Q2FY26 growth, expansion plans
Eternal Limited discussed its performance and future outlook during its Q2FY26 earnings conference call on October 16, 2025. The quick commerce business, Blinkit, saw a significant increase in monthly transacting user (MTU) addition, driven by higher ad spends. Management confirmed that elevated marketing spend would likely continue in the near term, focusing on new user acquisition, as long as customer acquisition costs (CACs) remain healthy with strong lifetime value (LTV). The company anticipates year-on-year growth to stay above 100% for the next one to two years for net order value (NOV).
For food delivery, a slow uptick in growth rate is expected in the near term, with profitability improving due to an increase in platform fees. The company's longer-term view on growth remains at 20% year-on-year, despite current rates around 15%. In quick commerce, a gross margin expansion of 300 basis points was achieved, partially attributed to a business model change and operating efficiencies.
Eternal Limited plans to operate around 2,100 stores by the December quarter and 3,000 by March 2027. While store additions primarily target the top 10 cities, the company aims to cover approximately 20% of the overall targetable retail market. Losses in the 'Others' segment are mainly due to investments in the Bistro 10-minute food delivery service.
This report was generated by FilingReader's AI system from regulatory filings and company disclosures. To request a correction, contact editorial@filingreader.com
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