First Read Eternal Ltd. Q1FY27: Solid beat, upside to medium-term margins in both FD and QC

研报英文原文证据摘录

First Read Eternal Ltd. Q1FY27: Solid beat, upside to medium-term margins in both FD and QC

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management indicated that customer retention is improving, with customers spending 03/29E 4.56 6.46

3x more after three years.

Navin Killa

Q: Has the company's outlook/guidance changed? Analyst

navin.killa@ubs.com

A: FD: NOV growth has improved every quarter since Q1FY26 and the company expects

+852-2971 7594

both growth and margin flywheel to continue despite segment margins approaching

the high end of 5-6% guidance. The company has seen limited impact from Toing/ Ajay Raj Choudhary

Associate AnalystOwnly and is addressing the <Rs150 AOV category through its own Bistro offering and

ajay-raj.choudhary@ubs.com

supply-chain innovation. QC: NOV growth should remain robust, driven by +91-20-3055 5000

densification, geographic and assortment expansion, and recent focus on "gourmet

stores" in the top cities to expand assortment; AOV should remain stable, with growth Aditya Chandrasekar

Analyst

led by MTU additions and higher frequency. Management raised steady-state EBITDA

aditya.chandrasekar@ubs.com

margin guidance to the upper end of 5-6%, implying c42% pre-tax ROCE. The company +91-22-6155 6056

believes competition is intense in QC but competitive behavior is becoming more

predictable. Blinkit remains focused on infrastructure-led growth.

Valuation: Buy with a PT of Rs305

FD growth continues to inch up and reach the20% mark; QC growth and profitability

ahead of our estimates. Refer to our recent detailed note on Eternal /Swiggy and Qcom

sector.

Highlights (Rsm) 03/24 03/25 03/26 03/27E 03/28E 03/29E 03/30E 03/31E

Revenues 121,140 202,430 543,640 923,266 1,385,061 1,863,156 2,142,574 2,443,615

EBIT (UBS) (1,540) 2,160 (4,080) 7,180 30,334 61,239 102,039 132,402