India · Delayed Price · Currency is INR Eternal Earnings Call Transcripts
Fiscal Year 2027
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Management raised long-term margin guidance in quick commerce to 6% as efficiency and scale improve, with growth driven by existing cities and increased order frequency. Competitive intensity peaked but is now more predictable, and margins are expected to remain stable as discount-led growth is viewed as unsustainable.
Fiscal Year 2026
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Management reaffirmed long-term EBITDA and growth targets, with Quick Commerce set for 60% CAGR and margin expansion, while maintaining pricing discipline and focusing on sustainable, quality growth amid high competition. Store expansion and reinvestment of incremental margins remain key.
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Break-even achieved in quick commerce and Hyperpure, with strong margin and EBITDA expansion despite a 6% QoQ drop in store throughput. Long-term margin guidance remains robust, but short-term volatility is expected due to intense competition and market dynamics.
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Quick commerce saw robust user and store growth, supported by elevated marketing spend and a shift to an inventory-led model, driving margin expansion but offset by higher supply chain costs. Food delivery profitability improved due to platform fee hikes, though growth remains subdued amid macro headwinds and competition from quick commerce.
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Quick commerce delivered robust growth, driven mainly by existing service areas, with margin improvements expected as the inventory model shifts to 1P. Food delivery growth has slowed but shows signs of recovery, while competitive intensity and expansion pace remain key variables for future performance.
Fiscal Year 2025
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Competitive intensity in quick commerce remains high, impacting margins and driving up costs, while store expansion continues, especially in smaller cities. Food delivery growth guidance is set as a long-term target, with ongoing investments in new initiatives and a focus on maintaining market share.
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Quick commerce expansion accelerated, with over 1,000 stores achieved ahead of schedule and ongoing investments expected to increase short-term losses. Food delivery growth slowed due to macroeconomic and seasonal factors, but margins are stable and expected to improve as mature stores increase.
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Quick commerce and food delivery segments are growing strongly, with rapid store expansion and stable AOVs across cities. CapEx has increased due to infrastructure investments, and a $1 billion fundraise is planned to strengthen the balance sheet, not for discounting.
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Food delivery and quick commerce segments delivered strong YoY growth, with margin expansion and robust order volumes. Blinkit is scaling rapidly with plans for 2,000 stores, while capital allocation remains conservative to support growth and innovation.