Eternal Limited (NSE:ETERNAL), formerly known as Zomato Limited, disclosed the transcript of its Q1FY27 earnings conference call conducted on July 22, 2026, filed with the stock exchanges on July 29, 2026. During the call, management raised its long-term quick commerce margin guidance from the previously guided 5-6% range to 6%, citing increased capex efficiency and larger store footprints as drivers of improved visibility on profitability.
Key Highlights
- Eternal Limited raised quick commerce margin guidance to 6% from the earlier 5-6% range, driven by higher capex per store and increased operational efficiency in the business.
- Management stated that Q1FY27 represented the peak competitive intensity in quick commerce, with most competition now taking the form of predictable customer subsidies and delivery discounts.
- The company reported that older customer cohorts are spending 3 times more than they did three years ago, with most of this growth coming from increased order frequency rather than average order value expansion.
- Blinkit's growth is primarily coming from existing cities rather than geographical expansion, according to the CEO's disclosure during the earnings call.
- Management reaffirmed that discount-led customer acquisition is unsustainable long-term and does not provide a viable path to profitability in the quick commerce segment.
- The company expects net average order values in quick commerce to remain broadly flat year-on-year, with management prioritising order growth and margin improvement over AOV expansion.
- Eternal Limited stated that future customer acquisition will come from gradual reinvestment of profitability gains into product competitiveness and value delivery rather than aggressive discounting.
About the Company
Eternal Limited, registered in New Delhi with CIN L93030DL2010PLC198141 and formerly known as Zomato Limited, operates as a digital food delivery and quick commerce platform in India. The company runs Blinkit, its quick commerce vertical, which operates across multiple Indian cities with micro-fulfillment centres. Eternal Limited is listed on the National Stock Exchange of India (NSE:ETERNAL, Scrip Code 543320, ISIN INE758T01015) and the BSE Limited. The company's registered address is Ground Floor 12A, 94 Meghdoot, Nehru Place, New Delhi 110019. Eternal Limited operates dual business verticals: food delivery and quick commerce, with the latter emerging as a focus area for margin expansion and long-term profitability guidance disclosure.
Announcement in Detail
Eternal Limited filed the official transcript of its Q1FY27 earnings conference call held on July 22, 2026, pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The call featured Albinder Singh Dhindsa as Chief Executive Officer, Akshant Goyal as Chief Financial Officer, and Kunal Swarup as Head of Corporate Development. The transcript was filed with the BSE Limited and the National Stock Exchange of India on July 29, 2026, and is also hosted on the company's investor relations website at https://b.zmtcdn.com/investor-relations/Q1FY27-earnings-call-transcript.pdf.
During the earnings call, the CFO Akshant Goyal disclosed that Eternal Limited has raised its long-term quick commerce margin guidance from the previously guided 5-6% range to 6%. He attributed this upward revision to increases in capex per store, expansion of average store sizes, and resulting efficiency improvements. Goyal stated that these investments have increased visibility on margins and that the company now expects to end at the higher end of the previously guided range. The management communication indicated that cumulative capex investments in quick commerce infrastructure are delivering measurable returns in operational efficiency and unit economics.
The CEO Albinder Singh Dhindsa addressed competitive dynamics in the quick commerce sector, characterising Q1FY27 as the peak of competitive intensity to date. He noted that competitive activity has shifted toward subsidised customer acquisition and discounted delivery fees, which he described as "more predictable" than prior competitive tactics. Dhindsa elaborated that competitors pursuing deep discounting face structural constraints, as aggressive pricing leads to unsustainable cash burn. He stated that platforms acquiring customers primarily through subsidies face a trap from which recovery is difficult, as customers acquired through discounts lack organic loyalty and will migrate to alternative platforms if subsidies are withdrawn.
Impact on Investors
The upward revision of quick commerce margin guidance to 6% signals management's increased confidence in the unit economics of Blinkit. Investors will note that this guidance upgrade is premised on capex investments already deployed, suggesting that management expects returns on these investments to materialise in the near to medium term. The filing indicates that the company has shifted focus from growth-at-all-costs strategies toward disciplined, capex-backed margin expansion. The disclosure that Q1FY27 represented peak competitive intensity and that competitive dynamics have become more predictable may reduce near-term uncertainty around margin sustainability, a factor relevant to investors evaluating the company's long-term profitability trajectory in quick commerce.
However, investors should observe that the company's strategy depends on competitors not deepening discounting beyond current levels. The filing documents management's explicit bet that the quick commerce sector will see competitive intensity stabilise rather than escalate further. If competitors pursue additional aggressive promotions despite management's stated view of unsustainability, margin realisation could be delayed or reduced. Additionally, the emphasis on order frequency growth over AOV expansion means profitability gains will be driven by operational leverage on volume rather than per-transaction pricing power, a dependency that warrants monitoring as competitive dynamics evolve.
Sector / Market Context
India's quick commerce sector has experienced rapid consolidation and competitive intensification since 2023, with multiple new entrants and established e-commerce players launching their own rapid delivery verticals. Industry participants have engaged in significant customer acquisition spending through discounting and delivery subsidies, with competitive intensity rising sharply through 2025 and into early 2026. This competitive phase has pressured margins industry-wide, with most players operating at negative or near-zero EBITDA at the unit level, as reported by multiple market research firms tracking the sector.
Against this backdrop, Eternal Limited's disclosure of margin guidance at 6% places it among the few quick commerce operators claiming visibility on unit-level profitability in the near term. The company's emphasis on infrastructure-led efficiency improvements rather than discount-led growth aligns with broader industry recognition that unsustainable discounting creates long-term business model risk. Government data from the Department for Promotion of Industry and Internal Trade, along with e-commerce industry bodies, has tracked the consolidation of quick commerce delivery capacity in major metropolitan areas, a trend consistent with management's statement that Eternal's growth is coming primarily from existing cities rather than geographical expansion.