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Zomato Ltd. (ETERNAL) Q2 2027 Earnings Report
IN:ETERNAL Q2 2027 EPS Results
- Actual EPS
- INR 0.13
- Consensus EPS
- INR 0.25
- Beat/Miss
- Missed by -INR 0.12
- One Year Ago EPS
- INR 0.07
IN:ETERNAL Q2 2027 Revenue Results
- Actual Revenue
- INR 241.38B
- Expected Revenue
- INR 234.17B
- Beat/Miss
- Beat by +INR 7.21B
- YoY Revenue Growth
- +77.62%
Earnings Announcement Details
- Quarter
- Q2 2027
- Date
- 10/21/2026
- Time
- Before Open
- Conference Call
- Wednesday, October 21, 2026
IN:ETERNAL Upcoming Earnings
Zomato Ltd.'s next earnings date is estimated for February 11, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly constructive, supported by strong Quick Commerce expansion prospects, robust paybacks in smaller cities, continued growth in larger markets, improving competitive visibility, and ongoing investment in AI opportunities. However, management also highlighted higher competitive intensity in food delivery and Quick Commerce, rising indirect costs, flat Quick Commerce contribution margins, negligible agentic-commerce traction, and uncertainty around Dark.ai's eventual monetization. Highlights outweighed the lowlights, but management retained a cautious tone around forward-looking AI outcomes and detailed financial guidance.
Company Guidance
Management said food delivery margins will be maintained broadly, with margins expected to remain flattish over the “next one or 2 year,” as investment in growth continues; Blinkit NOV growth is expected to pick up starting December quarter on a year-over-year basis, without a short-term margin reduction from accelerated store addition; about 90% to 95% of Quick Commerce is now 1P, with no more incremental working capital change expected on that account; steady-state NOV per day could reach about INR 1,100 or INR 11 lakh rupees per day per store versus INR 9 lakh today; the INR 2.5 crore store addition CapEx figure is a blended number, and the billion-dollar EBITDA guidance for FY29 is maintained; a large part of new-store expansion will be in smaller cities, while more than 70% of NOV in mature cities is EBITDA positive.
- Food Delivery Growth Investments Are Producing ResultsEternal said it has consistently increased investments over the last few quarters in new customer acquisition and in driving frequency among existing customers, with good outcomes from certain experiments. The company expects this investment trend to continue.
- Food Delivery Margins Expected to Remain Broadly StableThe company intends to maintain food delivery margins broadly while reinvesting in growth. Management expects margins to remain flattish over the next one or two years and said the focus is on driving higher absolute adjusted EBITDA rather than optimizing percentage margins.
- Quick Commerce Expansion Focused on Smaller CitiesA large part of new Quick Commerce store expansion is expected to be in smaller cities, including tier 2 and tier 3 markets. Management reported great outcomes and extremely good paybacks from stores opened in these markets.
- Strong Unit Economics and First-Mover Advantage in Smaller CitiesEternal said Quick Commerce economics in smaller cities are robust, with extremely good paybacks. These markets are also less competitive, and entering early provides an advantage in locking in early users.
- Quick Commerce Reaches a 90%-95% 1P MixThe company said approximately 90% to 95% of Quick Commerce SKUs are now 1P and that it does not expect any more incremental working capital change on that account.
- Operating Leverage Supports Quick Commerce Margin ExpansionManagement said overall adjusted EBITDA margin should improve primarily through operating leverage while the business continues expanding. Once expansion becomes a smaller part of the business, further improvement is expected from variable costs coming down.
- Quick Commerce Assortment Is Expanding Across MarketsThe assortment in expansion cities is currently a subset of the metro assortment, but the company is adding more SKUs as supply-chain scale increases. Products that are harder to find in smaller cities can see faster uptake there, and larger tier 1 cities can add assortment at lower incremental cost.
- Greater Visibility on Competition Supports Re-accelerated ExpansionAfter a 12-month period of significantly increased Quick Commerce competition, including new entrants and a market of five, six, or seven players, management said it now has a better understanding of competitors' strategies, investments, strengths, and the impact on its business. This improved visibility supports more aggressive infrastructure expansion.
- Blinkit NOV Growth Expected to Pick Up From the December QuarterManagement clarified that its comment on growth picking up from the reported 79% level referred to NOV growth and was expected to begin on a year-over-year basis from the December quarter.
- Accelerated Store Additions Not Expected to Reduce Short-Term MarginsThe company said accelerated store additions, which are starting, are not expected to cause a short-term margin reduction. Longer term, management expects margins to continue expanding.
- Continued Growth in Mature and Larger CitiesEven in larger cities, Blinkit is seeing extremely good growth driven by new customer acquisition, category expansion, and assortment expansion. Mature-city Blinkit MTU is already multiple times that of Zomato, with no plateau observed, and both NOV and MTU in larger markets continue to grow rapidly.
- Mature Cities Have Broad EBITDA ProfitabilityMore than 70% of NOV in mature cities is operating at EBITDA positive levels. Management defined mature cities as markets operating for more than two or three years, including metros and some older top 15 or top 20 cities, spread across regions.
- Top Eight Cities' Share of NOV Is ReducingThe company said the share of NOV coming from its top eight cities is reducing directionally from the previously referenced level of around 70%.
- Quick Commerce NOV per Store Is Expected to ImproveQuick Commerce NOV per day per store was reported at INR 9 lakh, versus management's prior steady-state guidance of about INR 11 lakh per day per store. Management expects the metric to increase directionally over time, although growth may not be linear because store additions can be lumpy.
- Store Expansion Guidance Uses a Blended INR 2.5 Crore CapEx FigureThe previously cited INR 2.5 crore per-store CapEx figure is a blended number and was provided with the expectation that a large part of future expansion would occur in tier 2 cities.
- Gourmet Expansion Continued in Bangalore and BombayEternal said it expanded gourmet offerings to Bangalore and Bombay. Gourmet stores do not represent a significant enough percentage of orders to materially affect overall AOV.
- Tier 1 Assortment Expansion Offsets Lower Tier 2 AOVsOverall net AOVs were described as stable. Management said assortment expansion in tier 1 cities is leading to higher AOVs and offsetting some of the lower AOVs from tier 2 cities, where new-city AOVs are approximately 10%-15% lower.
- Longer Inventory Holding Periods Are Supported Where AppropriateThe company said it is comfortable holding inventory for longer periods when required, citing air conditioners as an example because they cannot be stocked for only one week.
- Agentic Commerce Experimentation Is UnderwayEternal is friendly to agentic traffic and continues investing in the latest protocols needed to make agent-driven transactions more user-friendly. Management said the objective is to learn, experiment, collect data, and prepare for potential future traction.
- Dark.ai Is Being Developed Within EternalDark.ai is part of Eternal and has been in development for about a year. It is an application built using open-source models that are fine-tuned by the company, rather than a model built from the ground up.
- Dark.ai Has Limited Current Investment RequirementsManagement said Dark.ai's costs are accounted for in the Others segment, are already carved out, and are not very meaningful at this stage. As a base case, the company expects the business could be high gross margin, largely self-funding, and reach profitability relatively soon.
- Dark.ai Has Global Upside if SuccessfulManagement described Dark.ai as a zero-one bet: if it works, it could become a global business and generate extremely high shareholder value over the next few years; if it does not work, the company said it would kill the product.
- AI Initiatives Are Receiving Continued Strategic SupportEternal said it has one or two additional enterprise AI initiatives, including Nugget, and expects the next 12 months to indicate whether these products become meaningful. The company has the balance sheet to invest in new businesses where longer-term returns on capital are demonstrated.
- AI Product Development Includes Internal PilotsDark.ai has been running in an internal pilot within Zomato for the last few months. Scaling the product would primarily require hardware and compute investments, including GPUs for hosting the models.
IN:ETERNAL Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 11, 2027 | 2027 (Q3) | 0.31- | 0.11 | ― | ― |
| Oct 21, 2026 | 2027 (Q2) | 0.250.13 | 0.07 | 85.71% (+0.06) | |
| Jul 22, 2026 | 2027 (Q1) | 0.270.10 | 0.03 | 233.33% (+0.07) | |
| Apr 28, 2026 | 2026 (Q4) | 0.140.19 | 0.04 | 375.00% (+0.15) | |
| Jan 21, 2026 | 2026 (Q3) | 0.130.11 | 0.06 | 83.33% (+0.05) | |
| Oct 16, 2025 | 2026 (Q2) | 0.140.07 | 0.2 | -65.00% (-0.13) | |
| Jul 21, 2025 | 2026 (Q1) | 0.080.03 | 0.28 | -89.29% (-0.25) | |
| May 01, 2025 | 2025 (Q4) | 0.070.04 | 0.2 | -80.00% (-0.16) | |
| Jan 20, 2025 | 2025 (Q3) | 0.260.06 | 0.16 | -62.50% (-0.10) | |
| Oct 22, 2024 | 2025 (Q2) | 0.310.20 | 0.04 | 400.00% (+0.16) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
