Eternal revenue rose 182%, while net profit fell 47.13% sequentially
Costs grew faster than revenue sequentially, while the 66.18% tax rate and other income equal to 137.87% of pre-tax profit shaped earnings.
Filed 22 Jul 2026, 19:17 IST · after market close · Eternal Ltd (ETERNAL)
Key takeaways
- Consolidated revenue grew 182.00% year on year, while operating margin improved 1.34 percentage points to 2.94%.
- Net profit fell 47.13% sequentially as the tax rate rose 42.5 percentage points and other income equalled 137.87% of pre-tax profit.
- The stock was up 9.23% five sessions after the results, above its 3.0% median absolute move after the past eight results.
Price around the results
Revenue scaled faster than costs, but margin remains low
Eternal's consolidated revenue grew 182.00% year on year, while expenses rose 178.18%, allowing operating margin to expand by 1.34 percentage points. Sequentially, revenue and expenses increased at nearly the same pace, so margin improved only 0.13 percentage points. At 2.94%, the margin was 10.36 percentage points below the 13.3% median for 137 Consumer Discretionary peers that had reported.
Tax and below-operating items weakened profit conversion
Sequential profit before tax rose 19.30%, but net profit declined 47.13% because the tax rate jumped to 66.18% from 23.68%. Other income was 137.87% of pre-tax profit, making reported earnings heavily dependent on income below operating profit. Interest rose 14.39% sequentially and depreciation increased 16.67%, adding to the pressure outside operations.
Operating margin has risen for five straight quarters
Operating margin has increased each quarter from 1.23% in Q4FY25 to 2.94% in Q1FY27, extending the gradual improvement in operating performance. The year-on-year comparison is especially large because revenue rose from Rs 7,167 cr to Rs 20,211 cr, while operating profit grew 416.52%. The sequential profit decline therefore reflects tax and non-operating effects rather than a contraction in operating profit, which rose 22.22%.
The initial market move was ordinary, but the five-day gain was larger
The stock opened 1.92% higher and ended the first session up 0.95%, then was down 1.55% on the next session. By the fifth session it was up 9.23%, compared with a 3.0% median absolute move across the past eight results; the historical record includes five up moves and three down moves.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹20,211 cr | ₹17,292 cr | +16.88% | +182.00% |
| Other income | ₹375 cr | ₹342 cr | +9.65% | +5.93% |
| Expenses | ₹19,617 cr | ₹16,806 cr | +16.73% | +178.18% |
| Operating profit | ₹594 cr | ₹486 cr | +22.22% | +416.52% |
| Operating margin (%) | 2.94% | 2.81% | — | — |
| Interest | ₹151 cr | ₹132 cr | +14.39% | +125.37% |
| Depreciation | ₹546 cr | ₹468 cr | +16.67% | +73.89% |
| Profit before tax | ₹272 cr | ₹228 cr | +19.30% | +209.09% |
| Tax | ₹180 cr | ₹54 cr | +233.33% | +185.71% |
| Net profit | ₹92 cr | ₹174 cr | -47.13% | +268.00% |
| EPS (₹) | ₹0.10 | ₹0.19 | -47.37% | +233.33% |
Operating margin of 2.94% compares with a Consumer Discretionary sector median of 13.30% across 137 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.95% | +1.48% |
| Next session | -1.55% | — |
| 5 sessions | +9.23% | +7.89% |
Volume on the results session was 1.81× its 20-day average.
What to watch
- Whether operating margin continues its five-quarter rise from 2.94%.
- Whether the tax rate moves back from 66.18% toward the previous quarter's 23.68%.
- Whether other income remains below its current 137.87% share of pre-tax profit.