Eternal’s ad spend increases 41% to ₹1,138 crore in Q2 FY27

Eternal’s advertising and sales promotion expenses increased 41.2% year on year to ₹1,138 crore in Q2 FY27, compared with ₹806 crore in the corresponding quarter last year. For the six months ended September 30, 2026, the company’s promotional expenditure rose to ₹2,083 crore from ₹1,477 crore in the year-ago period.

The increase in spending coincided with a rise in business activity, with Eternal reporting consolidated adjusted revenue of ₹24,621 crore for the September quarter, up 76% year on year. Adjusted EBITDA grew 197% to ₹666 crore, while consolidated net order value (NOV) increased 54% to ₹35,644 crore.

Revenue from operations stood at ₹24,138 crore, against ₹13,590 crore in Q2 FY26. Including other income of ₹351 crore, total income reached ₹24,489 crore. Total expenses rose to ₹24,166 crore from ₹13,813 crore, while profit before tax increased to ₹323 crore from ₹129 crore.

Eternal closed September 2026 with a cash balance of ₹16,475 crore, compared with ₹11,813 crore a year earlier. Its portfolio spans food delivery, quick commerce, going-out and B2B supplies.

Quick commerce recorded the strongest growth among Eternal’s major businesses, with NOV rising 79% year on year to ₹20,940 crore. Adjusted revenue climbed 94% to ₹19,152 crore.

However, the reported revenue growth reflects a change in the segment’s business model. From Q2 FY27, revenue includes the full monetary value of goods sold, replacing the marketplace commission-based model followed in Q1 FY27. According to the company’s results presentation, 84% of the reported 94% growth in adjusted revenue was attributable to this shift in revenue recognition.

The segment also moved into positive adjusted EBITDA, reporting ₹184 crore against a loss of ₹340 crore in Q2 FY26. Adjusted EBITDA stood at 0.9% of NOV.

At ₹20,940 crore, quick commerce accounted for the largest share of Eternal’s consolidated NOV of ₹35,644 crore for the quarter. Its reported revenue growth, however, needs to be viewed in the context of the revised revenue recognition model.

Eternal’s food delivery business reported NOV of ₹11,445 crore in Q2 FY27, marking a 21% year-on-year increase. Adjusted revenue grew 35% to ₹3,879 crore, while adjusted EBITDA rose 25% to ₹627 crore.

Adjusted EBITDA represented 5.5% of NOV. The segment’s adjusted EBITDA of ₹627 crore was higher in absolute terms than the ₹184 crore reported by quick commerce, despite the latter’s stronger NOV growth.

Eternal’s going-out business recorded a 58% year-on-year increase in NOV to ₹3,259 crore. Adjusted revenue grew 61% to ₹304 crore during the quarter. The segment reported an adjusted EBITDA loss of ₹64 crore, equivalent to negative 2.0% of NOV, compared with a loss of ₹1 crore in Q2 FY26.

The widening loss contrasts with the improvement in quick commerce, which moved from a ₹340 crore adjusted EBITDA loss in the year-ago quarter to a positive ₹184 crore in Q2 FY27. Food delivery continued to report positive adjusted EBITDA of ₹627 crore.

Hyperpure, Eternal’s B2B supplies business, reported adjusted revenue of ₹1,154 crore in Q2 FY27, up 13% year on year. Adjusted EBITDA declined to ₹10 crore from ₹15 crore in the corresponding quarter last year, equivalent to 0.9% of adjusted revenue.

Across the four businesses, food delivery and quick commerce generated positive adjusted EBITDA of ₹627 crore and ₹184 crore, respectively. Going-out reported an adjusted EBITDA loss of ₹64 crore, while Hyperpure recorded adjusted EBITDA of ₹10 crore.

For the six months ended September 30, 2026, revenue from operations stood at ₹44,349 crore, compared with ₹20,757 crore a year earlier. Total expenses increased to ₹44,480 crore from ₹21,246 crore, while profit before tax rose to ₹595 crore from ₹217 crore.

The consolidated financial results also include financial information from 17 subsidiaries and one trust that had not been reviewed by their auditors. These entities reported total assets of ₹2,757 crore as of September 30, 2026, and revenue of ₹248 crore for the quarter and ₹463 crore for the half-year.

Their losses after tax stood at ₹132 crore for the quarter and ₹227 crore for the six-month period. Other comprehensive income was ₹1 crore for the quarter and ₹2 crore for the half-year, while net cash inflows for the six months amounted to ₹70 crore. Management stated that the unaudited financial information was not material to the group.