WatchTalking point
Profit lagging revenue
Revenue grew 168.6% but profit declined 30.6%, so the company kept less of each rupee of revenue as profit.
Importance 74 / 95 · growth
Eternal Limited · Research view
Eternal Limited
NSE: ETERNALBSE: 543320ISIN INE758T01015Face value ₹1standalone
₹314
−4.13% · 2026-10-01 · 52-wk ₹216–₹354
Financials to FY2026 · 5 years of history · prices to 2026-10-01consolidatedstandalone
Section 02 · Synthesis
What stands out?
The strongest observations the engine found, ranked. Every line is generated from the filed numbers by a fixed rule — no opinion, no estimate.
StrengthConcernWatchContext
WatchTalking point
Sharp margin drop
EBITDA margin dropped 3.7 percentage points in a single year, from 8.5% to 4.8% — worth investigating.
Importance 65 / 95 · anomaly
WatchTalking point
Volatile earnings
Profit has swung sharply over 4 years (from ₹-1,222 to ₹527) — one year is a weak guide to the earnings power.
Importance 63 / 95 · growth
WatchTalking point
Premium valuation, soft growth
The P/E of 665.37× is above the e retail e commerce median (511.18×) while profit declined 30.6% last year.
Importance 62 / 95 · valuation
Section 03 · The company
Who is this company?
Classified by the exchange under Consumer Discretionary › Consumer Services › Retailing › E-Retail/ E-Commerce.
- Market cap
- ₹2.88 L cr
- FY2026 revenue
- ₹10,899 cr
- FY2026 net profit
- ₹2,655 cr
- Net worth
- ₹37,056 cr
- Total debt
- ₹0 crnet cash
- EPS (basic)
- ₹2.91
- Listed
- NSE · BSE
- Reporting
- Ind-ASApr–Mar
Peer set used on this page: 4 e-retail/ e-commerce.
Section 04 · Business performance
Is the business growing?
RevenueNet profit
Watch
Revenue grew 168.6% but profit declined 30.6%, so the company kept less of each rupee of revenue as profit.
Rule PROFIT_SLOWER_THAN_REVENUE
- Revenue growth per year
- +31.8%over 4 years
- Revenue growth
- +26.5%vs last year
- Net profit growth
- +35.5%vs last year
- Change in net profit since FY22
- +342%
Revenue grew 168.6% but EBITDA margin fell 3.7 percentage points to 4.8%, so the company kept less of each rupee of revenue as operating profit.
Profit has swung sharply over 4 years (from ₹-1,222 to ₹527) — one year is a weak guide to the earnings power.
Revenue compounded at 89.8% a year over 4 years (₹4,192 → ₹54,364) — though FY2026 saw a one-off step-change of 169% (a merger, restructuring or a recovery off a low base), so the compounding is uneven.
Net profit fell 30.6% year on year (FY2025 → FY2026).
Revenue grew 168.6% year on year (FY2025 → FY2026).
Section 05 · Recent activity
What changed recently?
Quarterly results, the trailing-twelve-months snapshot, and verified corporate actions — kept separate from each other and from the annual story above. Every figure traces to a filed number; nothing here is external news or commentary.
Strength
Q1 FY27 revenue was ₹20,211 cr, up 182.0% from ₹7,167 cr in Q1 FY26 a year earlier.
Rule QTR_REVENUE_GROWTH_YOY
Strength
Q1 FY27 net profit was ₹92 cr, up 268.0% from ₹25 cr a year earlier.
Rule QTR_PROFIT_GROWTH_YOY
Strength
Q1 FY27 net profit grew 268.0% while revenue grew 182.0% vs the same quarter last year — a gap of 86.0 percentage points.
Rule QTR_PROFIT_VS_REVENUE_GROWTH
A. Quarterly results
RevenueNet profit
| Quarter | Revenue | YoY | Net profit | YoY | Net margin |
|---|---|---|---|---|---|
| Q2 FY25 | 4,799 | — | 176 | — | 3.7% |
| Q3 FY25 | 5,405 | +64.4% | 59 | −57.2% | 1.1% |
| Q4 FY25 | 5,833 | +63.8% | 39 | −77.7% | 0.7% |
| Q1 FY26 | 7,167 | +70.4% | 25 | −90.1% | 0.3% |
| Q2 FY26 | 13,590 | +183.2% | 65 | −63.1% | 0.5% |
| Q3 FY26 | 16,315 | +201.9% | 102 | +72.9% | 0.6% |
| Q4 FY26 | 17,292 | +196.5% | 174 | +346.2% | 1.0% |
| Q1 FY27 | 20,211 | +182.0% | 92 | +268.0% | 0.5% |
B. TTM snapshot
Trailing twelve months to 30 Jun 2026 · sum of the last 4 contiguous quarters
- Revenue
- ₹67,408 crTTM
- EBITDA
- ₹3,104 crTTM
- EBIT
- ₹1,275 crTTM
- PBT
- ₹799 crTTM
- Net profit
- ₹433 crTTM
C. Corporate actions
No verified corporate actions on record for this company.
Section 06 · Business performance
Is it becoming more profitable?
EBITDA marginNet margin
Context
EBITDA margin has ranged from -32.3% to 8.5% over 4 years and sits at 4.8% now.
Rule MARGIN_RANGE_MULTIYEAR
- EBITDA margin now
- 29.4%
- 5-year range
- -31.3–29.4%
- ROE FY2026
- 7.5%
- ROCE FY2026
- 8.4%
Section 07 · Financial health
Is financial health improving?
Net worth (shareholders' funds)
Strength
Net worth compounded at 17.1% a year over 4 years (₹16,499 → ₹30,973) — though FY2025 saw a one-off step-change of 49% (a merger, restructuring or a recovery off a low base), so the compounding is uneven.
Rule NET_WORTH_COMPOUNDING
Operating cash flowNet profit
- Total debt
- ₹0 crnet cash
- Operating cash flow ÷ net profit
- 0.13×FY2026
- Free cash flow
- ₹242 cr
- Current ratio
- 5.13×
Section 08 · Relative position
How does it compare with peers?
Ranked against 4 e-retail/ e-commerce (FY2026, consolidated).
Revenue growth
ETERNAL · 1st of 3 · set median 51.4%
EBITDA margin
ETERNAL · 2nd of 4 · set median -1.6%
Return on equity
ETERNAL · 2nd of 4 · set median -14.0%
Watch
The P/E of 665.37× is above the e retail e commerce median (511.18×) while profit declined 30.6% last year.
Rule PRICED_FOR_GROWTH
- P / E
- 665.4×TTM to Jun 26
- P / B
- 9.3×latest book
- P / S
- 4.3×TTM sales
- Earnings yield
- 0.2%TTM to Jun 26
On the trailing twelve months. Last full year: P/E 787.2× · P/S 5.2× · ROE 1.2%. TTM and full-year profit and revenue and EBITDA differ by more than 15% — a one-off in a recent quarter is moving the trailing figure; weigh it against the full year.
Section 09 · The stock
How has the stock performed?
Long-term price performance is shown above.
- 1-year return
- −4.7%
- 3-year return
- —
- 5-year return
- —
- From 52-wk high
- −11.5%
Section 10 · Technical data
What does the technical data say?
Price-action indicators as of 2026-10-01. Secondary to the fundamentals above — included for timing context, not as a signal.
- vs 50-day avg
- Below₹318
- vs 200-day avg
- Above₹276
- RSI (14)
- 38.1neutral
- MACD histogram
- -1.9
- From 52-wk high
- −11.5%
- From 52-wk low
- +45.4%
- 30-day volatility
- 20.1%ann.
- 6-month return
- +31.8%
Section 11 · Open questions
What should I investigate further?
Observations the engine tagged watch or deteriorating — prompts for your own research, not conclusions.
- WatchProfit lagging revenueRevenue grew 168.6% but profit declined 30.6%, so the company kept less of each rupee of revenue as profit.PROFIT_SLOWER_THAN_REVENUE · conviction 74
- WatchSharp margin dropEBITDA margin dropped 3.7 percentage points in a single year, from 8.5% to 4.8% — worth investigating.MARGIN_SHARP_DROP · conviction 65
- WatchGrowing, but less profitablyRevenue grew 168.6% but EBITDA margin fell 3.7 percentage points to 4.8%, so the company kept less of each rupee of revenue as operating profit.REVENUE_UP_MARGIN_DOWN · conviction 65
- WatchVolatile earningsProfit has swung sharply over 4 years (from ₹-1,222 to ₹527) — one year is a weak guide to the earnings power.EARNINGS_VOLATILE · conviction 63
- WatchPremium valuation, soft growthThe P/E of 665.37× is above the e retail e commerce median (511.18×) while profit declined 30.6% last year.PRICED_FOR_GROWTH · conviction 62
- ConcernProfit fellNet profit fell 30.6% year on year (FY2025 → FY2026).PROFIT_DECLINED_YOY · conviction 48
- WatchUnusual tax rateEffective tax rate of 40.5% (FY2026) is well above the ~25% corporate norm — a one-off tax item may be flattering or depressing reported profit.EFFECTIVE_TAX_UNUSUAL · conviction 39
Data coverage is complete — 5 years of financials (FY2022–FY2026), full P&L, balance sheet and cash-flow statement, sector metrics fully mapped.
Section 12 · Reference
The numbers
The full statements, kept deliberately secondary. Every figure traces to a BSE Integrated Filing (inline XBRL); ratios are recomputed from the normalised facts.
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 3,611 | 4,707 | 6,622 | 8,617 | 10,899 |
| Total income | 4,109 | 5,507 | 7,542 | 9,877 | 12,702 |
| EBITDA | −1,130 | 274 | 1,502 | 2,314 | 3,202 |
| Profit before tax | −1,098 | 117 | 1,372 | 2,190 | 2,966 |
| Net profit | −1,098 | 117 | 1,371 | 1,960 | 2,655 |
| EPS (₹) | −1.5 | 0.1 | 1.6 | 2.2 | 2.9 |
| Net worth | 16,767 | 20,807 | 22,775 | 34,115 | 37,056 |
| Total debt | 0 | 0 | 0 | 0 | 0 |
| Operating cash flow | −509 | 225 | 1,379 | 1,614 | 340 |
| Free cash flow | −540 | 168 | 1,342 | 1,522 | 242 |
| Ratio | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth YoY | — | 30.4 | 40.7 | 30.1 | 26.5 |
| Profit growth YoY | — | — | — | 43.0 | 35.5 |
| Profitability | |||||
| EBITDA margin % | -31.3 | 5.8 | 22.7 | 26.9 | 29.4 |
| Net margin % | -26.7 | 2.1 | 18.2 | 19.8 | 20.9 |
| Return on equity % | -6.5 | 0.6 | 6.3 | 6.9 | 7.5 |
| Return on capital % | -7.5 | 0.7 | 6.6 | 7.8 | 8.4 |
| Leverage & cash | |||||
| Debt to equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Cash flow ÷ profit | — | 1.92 | 1.01 | 0.82 | 0.13 |
| Current ratio | 11.06 | 9.33 | 2.54 | 4.12 | 5.13 |