Q1 2026 Eternal Ltd Earnings Call Transcript
Key Points
- Eternal Ltd (BOM:543320) reported strong growth in Quick Commerce, particularly in existing polygons, with a 70% year-on-year growth in mature markets like Delhi.
- The company plans to move most of its inventory to a 1P model over the next two to three quarters, which is expected to result in margin accretion.
- Eternal Ltd's food delivery segment saw a return to growth in MTC after three quarters of stagnation, indicating a positive trend.
- The company is focused on maintaining its leadership position and providing excellent customer service, which is a priority in their strategic planning.
- Despite competitive pressures, Eternal Ltd expects margins and absolute losses to improve, with some parts of the business already achieving a 2.5% margin.
- The company does not track same-store sales growth due to dynamic changes in store catchment areas, making it difficult to assess growth metrics.
- There is uncertainty regarding the impact of GLP-1 drugs on food consumption, which could potentially affect the food delivery business.
- Eternal Ltd faces challenges in expanding its Quick Commerce business due to external factors affecting store expansion and competitive intensity.
- The company is not providing specific guidance on breakeven timelines for Quick Commerce, indicating uncertainty in achieving profitability.
- Eternal Ltd's food delivery growth has slowed, with NOV growth decreasing from 27% to 13% year-on-year, raising concerns about sustaining higher growth rates.
Ladies and gentlemen, a very good evening and welcome to Eternal Limited's Q1 FY26 earnings conference call. From Eternal's management team, we have with us today Akshant Goyal, Chief Financial Officer; Albinder Dhindsa, Founder and CEO of Blinkit; and Kunal Swarup, Head of Corporate Development.
Before we begin, a few quick announcement for the attendees. Anything said on this call, which reflects outlook for the future or which could be construed as a forward statement may involve risks and uncertainties. Such statements or comments are not guarantees of future performance, and actual results may differ from those statements.
Additionally, please note that this earnings call is scheduled for a duration of 45 minutes, and we will be starting directly with the Q&A section of the call.
Questions & Answers
(Operator Instructions)
Ankur Rudra, JPMorgan.
Thank you, and a nice set of numbers overall. Just starting with Quick Commerce
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