India · Delayed Price · Currency is INR Eternal Earnings Call Transcripts
Fiscal Year 2026
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Management reaffirmed long-term EBITDA and growth targets, with Quick Commerce set for 60% CAGR and food delivery maintaining strong margins. Store expansion and automation continue, while disciplined pricing and customer retention remain priorities amid high competition.
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Break-even achieved in quick commerce and Hyperpure, with margin expansion despite competitive pressures. CapEx per store is rising due to automation, and long-term margin guidance remains strong, though short-term volatility is expected.
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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 strong growth, mainly from existing areas, with margins improving as the business transitions to an inventory-led model. Food delivery growth has rebounded, though headwinds from quick commerce persist, and margins are expected to remain stable near term.
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, reaching 2,000 stores ahead of schedule, with mature stores maintaining strong margins and customer retention. Food delivery growth slowed due to macro and seasonal factors, but margin expansion continues through operational optimizations. Losses are expected to rise near-term as investments persist.
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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 robust YoY growth, with margin expansion and aggressive store rollout plans. Management expects continued strong performance, ongoing margin improvement, and is prioritizing a strong balance sheet over shareholder distributions.