Are Eternal Ltd latest results good or bad?

Eternal Ltd has reported its financial results for the quarter ending June 2025, showcasing a complex picture of growth in net sales alongside significant challenges in profitability. The company achieved net sales of Rs 7,167.00 crore, reflecting a 41.6% growth compared to the average of the previous four quarters. This positive sales trend has been consistent over the last five quarters, indicating strong demand in the E-Retail and E-Commerce sector.
However, the financial performance also highlighted considerable difficulties. The Profit Before Tax (PBT) was recorded at Rs -266.00 crore, which represents a notable decline compared to the previous four-quarter average. Additionally, the Profit After Tax (PAT) fell to Rs 25.00 crore, marking an 81.0% decrease from the average of Rs 131.75 crore in prior quarters, indicating a significant drop in profitability and reaching the lowest PAT in five quarters.

The earnings per share (EPS) also declined to Rs 0.03, reflecting the challenges in maintaining profitability. Furthermore, the Debtors Turnover Ratio was recorded at 10.40 times, the lowest in the last five half-year periods, suggesting a slowdown in the company's ability to settle debts efficiently.

Overall, while Eternal Ltd experienced a notable increase in net sales, the substantial decline in profitability metrics has led to an adjustment in its evaluation. The company faces ongoing operational challenges that need to be addressed to improve its financial health moving forward.