Eternal Limited, in its Board Meeting held today (October 21), announced the company’s Q2 results for FY27. Along with the Q2 results the company also announced to acquire the stake of Mygate through a share-swap transaction for around Rs 156 crore as part of the proposed merger involving Adonmo. Here are the details: Eternal is set to acquire a 5.4 per cent stake in Vivish Technologies Private Limited, which operates Mygate, through a share-swap transaction valued at approximately Rs 156 crore. Mygate reported an audited turnover of Rs 229 crore as of March 31, 2026, and has an authorised share capital of Rs 23.35 crore and a paid-up share capital of Rs 23.22 crore, according to the company’s exchange filing.
Under the transaction, Eternal will acquire 1,84,091 Series C1 compulsorily convertible preference shares and 164 equity shares of Mygate in exchange for 11,214 Series B compulsorily convertible preference shares and 10 equity shares it holds in Adonmo. The acquisition is expected to be completed on or before December 5, 2026.
Mygate operates a technology platform focused on gated communities and residential complexes. Incorporated in India on January 12, 2016, the company provides technology-based solutions for residential community management. Eternal said the transaction does not qualify as a related-party transaction, and no government or regulatory approvals have been specified as necessary.
Transaction is expected to be completed within 30 days
The proposed deal expands Eternal’s investments beyond its core food delivery and quick commerce operations, strengthening its presence in related consumer-focused technology platforms. The deal marks another step in Eternal’s efforts to diversify its investments beyond food delivery and quick commerce into related consumer technology businesses. The business transfer agreement was signed on October 21, 2026, with the transaction expected to be completed within 30 days. The consideration for the slump sale has been set at approximately Rs 130.76 crore, payable in cash by ZEPL, a wholly owned subsidiary of the company, subject to agreed adjustments.
MyGate, incorporated in India on January 12, 2016, operates a platform focused on improving security and management in gated communities and provides ancillary services.
Eternal Q2 Results: Profit up 36% to Rs 125 crore, revenue up 19%
Eternal reported a 35.9 per cent quarter-on-quarter (QoQ) rise in consolidated profit after tax (PAT) to Rs 125 crore in Q2 FY27, compared with Rs 92 crore in Q1 FY27. Revenue increased 19.4 per cent to Rs 24,138 crore from Rs 20,211 crore, while EBITDA grew 26.6% to Rs 752 crore from Rs 594 crore. The EBITDA margin improved to 3.1 per cent from 2.9 per cent, marking an expansion of 20 basis points.
However, Eternal’s Q2 revenue and EBITDA came in below ET NOW’s poll estimates of Rs 23,447 crore and Rs 777 crore, respectively, while PAT was lower than the estimated Rs 280 crore.
The company has seen a good increase in both its profits and earnings. This time too, the biggest engine of the company’s growth was the quick commerce business.
Blinkit’s quick commerce business accounted for the largest share of Eternal’s revenue, with revenue rising around 22% to Rs 19,152 crore from Rs 15,664 crore. The segment contributed approximately 80% of the company’s total revenue. Meanwhile, Zomato’s food delivery business reported a 10% increase in revenue to Rs 3,396 crore, compared with Rs 3,100 crore in the previous quarter.
Blinkit targets 5,000 stores by March 2028
Blinkit added 308 new stores during the quarter, taking its total store count to 2,751. The company aims to expand its network to 3,500 stores by March 2027 and 5,000 stores by March 2028.
Eternal shares closed 2.45% lower at Rs 312.35 on Wednesday (October 21). The stock declined 1.16% over the past week and 7.01% over the past month. However, it has gained 10.06% so far this year, while falling 7.62% over the past year.