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 rose +182.00% YoY, while operating-margin expansion reached 30.44 percentage points at 59.53%.
- Sequential net profit fell -47.13% as the tax rate rose 42.50 percentage points and expenses grew faster than revenue, narrowing margin by 0.14 percentage points.
- Other income was 137.87% of pre-tax profit, making the Rs 92 cr net profit highly exposed to non-operating income and the 66.18% tax rate.
Price around the results
Revenue growth continued, but sequential momentum moderated margins
Eternal's consolidated revenue grew +16.88% QoQ and +182.00% YoY to Rs 20,211 cr, with operating profit rising +16.60% QoQ and +477.07% YoY. The YoY comparison shows operating leverage, as revenue grew much faster than expenses and operating margin expanded 30.44 percentage points. Sequentially, however, expenses grew +17.30%, faster than revenue, so operating margin narrowed by 0.14 percentage points.
Tax and non-operating income drove the profit outcome
Net profit declined -47.13% QoQ despite higher operating profit because the tax rate rose 42.50 percentage points to 66.18%; interest expense also increased +14.39%. Other income of Rs 375 cr amounted to 137.87% of pre-tax profit, so reported profit was not supported solely by operating earnings. YoY net profit still rose +268.00%, helped by the lower tax rate and the sharp improvement in operating profit.
Margin remains near 60% and well above the peer median
Operating margin has stayed broadly around 60% for the past three quarters: 59.55% in Q3FY26, 59.67% in Q4FY26 and 59.53% in Q1FY27. The latest sequential dip is therefore a marginal pullback rather than a third straight quarter of decline. Among 22 Consumer Discretionary peers that have reported, Eternal's 59.53% margin was 43.39 percentage points above the 16.14% median.
The initial stock reaction was smaller than Eternal's usual move
The stock opened with a +1.92% gap and was up +0.95% at the initial reaction point, before returning -1.55% at the next point. Across the last eight results reactions, Eternal rose after five and fell after three, with a median absolute move of 3.00%. The initial gain was therefore below the stock's typical post-results move.
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 | ₹8,179 cr | ₹6,973 cr | +17.30% | +60.94% |
| Operating profit | ₹12,032 cr | ₹10,319 cr | +16.60% | +477.07% |
| Operating margin (%) | 59.53% | 59.67% | — | — |
| 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 59.53% compares with a Consumer Discretionary sector median of 16.14% across 22 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.95% | +1.48% |
| Next session | -1.55% | — |
Volume on the results session was 1.81× its 20-day average.
What to watch
- Whether operating margin holds above 59.53% after the 0.14 percentage-point sequential decline.
- Whether the tax rate moves down from 66.18% in the next quarter.
- Whether other income remains above the Rs 272 cr pre-tax profit level.