Eternal CEO Transition: Goyal Out, Dhindsa In Amid Profit Scrutiny

Deepinder Goyal will step down as group CEO of Eternal, effective February 1, 2026, passing leadership to Albinder Dhindsa. Over nearly two decades, Goyal transformed Eternal into a platform that processed over $10 billion in transactions in FY26. With Dhindsa assuming leadership a few months prior, the company’s Q4 FY26 financial results have drawn significant attention.

Eternal reported a consolidated net profit of ₹174 Cr in Q4 FY26, a 4.5-fold increase from ₹39 Cr in the previous year. Sequentially, profit grew by 71% from ₹102 Cr. Operating revenue saw a substantial rise of 196% year-on-year and 6% quarter-on-quarter, reaching ₹17,292 Cr. Including other income, total income for the quarter amounted to ₹17,634 Cr.

While Dhindsa’s first results as CEO appear strong on the surface, excluding other income reveals a potential loss for the quarter. This highlights a gap between headline growth and underlying profitability, as total expenses escalated by 185% year-on-year to ₹17,406 Cr.

Eternal’s Q4 FY26 performance indicates strong momentum but also exposes a structural challenge: profitability is increasingly reliant on non-operating income, even as costs surge in line with expansion. Under Dhindsa, the company is balancing three distinct business verticals: quick commerce, food delivery, and going-out services.

Blinkit’s Growth and Margin Pressures

Blinkit, Eternal’s quick commerce arm, remains a key growth driver. In Q4 FY26, it recorded a net order value of ₹14,386 Cr, nearly doubling year-on-year. Monthly transacting users reached 27.2 million, and the dark store network expanded to over 2,200 locations.

Despite this scale, Blinkit reported an adjusted EBITDA of ₹37 Cr, representing a margin of approximately 0.3%. Average order value (AOV) has remained relatively flat, with growth primarily attributed to an increase in users and the expansion of the store network rather than enhanced per-customer or per-store revenue. Eternal has set a three-year goal of 60% CAGR for quick commerce.

Food Delivery’s Steady Performance

Food delivery continues to be the foundation of Eternal’s business, demonstrating steady growth and stable contribution margins amidst evolving competition and pricing dynamics. The company’s strategy focuses on optimizing for absolute profit growth rather than margin percentage, reinvesting gains back into the business.

This approach is reflected in pricing strategies, which include careful use of discounts across select segments to increase revenue per order while driving growth. Zomato is also expanding into more affordable segments to attract new users, testing lower minimum order values, though this puts pressure on AOV.

District: An Emerging Vertical

Eternal’s third vertical, District, which focuses on going-out services, reported a net order value of ₹2,736 Cr and revenue of ₹277 Cr in Q4 FY26, with an adjusted EBITDA loss of ₹81 Cr. While losses have decreased compared to the previous quarter, the business operates in a more occasional category, with demand influenced by events and discretionary spending.

The company is focusing on improving execution, unit economics, and supply partnerships for District, aiming to make demand more predictable. Although the market is competitive, District offers potential for better margins through commissions, advertising, and partnerships over time.

Analysts remain cautiously optimistic about Eternal’s prospects. While profitability is expected to improve gradually, with PAT margins potentially reaching around 3% by FY28, significant investments in quick commerce will influence the timeline for margin expansion. A sharper rise, or J-curve, is anticipated around FY29 or FY30. The company aims to reach $20 billion in annual net order value and $1 billion in adjusted EBITDA by FY29, with a clear mandate for Dhindsa to accelerate growth while building a sustainable business.