Q2 2026 Eternal Ltd Earnings Call Transcript
Key Points
- Eternal Ltd (BOM:543320) has seen a significant increase in Monthly Transacting Users (MTU) for Blinkit, driven by higher marketing spends.
- The company maintains that new customer cohorts break even at the Contribution Margin (CM) level within the first month, indicating efficient customer acquisition.
- Eternal Ltd (BOM:543320) has expanded its geographical footprint to 1800 stores, enhancing its addressable market.
- Certain parts of the business are already EBITDA positive, with some cities achieving over 3% adjusted EBITDA margin.
- The company expects to maintain a year-on-year growth rate above 100% for the next one to two years, driven by store expansions and increased marketing efforts.
- Elevated marketing expenses are expected to continue, impacting short-term profitability.
- The company is not focused on achieving EBITDA break-even in the near term, as it prioritizes growth and expansion.
- Competitive intensity and market dynamics could affect the company's strategic decisions and financial outcomes.
- The transition to an inventory model has increased supply chain costs, impacting contribution margins.
- The food delivery segment has shown limited growth, with macroeconomic factors and competition affecting performance.
Ladies and gentlemen, a very good evening, and welcome to Eternal Ltd's Q2 FY '26 earnings conference. Just 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 announcements for the attendees. Anything set on this call which reflects outlook for the future, or which could be construed as a forward-looking 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 evening's call is scheduled for a duration of 45 minutes and we'll be starting directly with the queue in a section of the call.
If you wish to ask a question, please use the rean feature available on your Zoom dashboard. We will announce your name on the call and unmute your line, post which you can proceed with your question. You will wait for a minute while the question queue assembles.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
