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Eternal

ETERNAL · Computer Services · INE758T01015

Analyst mean 1.81 · 31 analysts · 1% bullish
₹311.80
Close 2026-07-31 · Balanced risk

Reading the Statements forensic interpretation

What the numbers mean when read together — computed from the filings, not a score.

Operating cash flow backs the profit

Operating cash flow is 146% of trailing profit — the earnings are converting to cash, not just accruals.

Full read

Last operating cash flow ₹632 cr against trailing net profit ₹433 cr. A ratio at or above ~0.9 means reported profit is showing up as real cash.

Profit growing with revenue

Both revenue and profit grew over the last year (190.5% and 44.8%) — growth is translating to the bottom line.

Full read

Trailing revenue ₹67,408 cr, trailing profit ₹433 cr. Profit growing at least as fast as revenue indicates operating leverage or pricing power.

Burning cash after capex

Free cash flow is negative — the business consumes more than it generates once capex is paid. Fine if it is deliberate growth investment; a problem if it is structural.

Full read

Latest free cash flow ₹-1,114 cr, negative in 6 of 7 years. Check whether the burn funds expansion (dark stores, plants, ports) or merely sustains operations.

Other income is a big part of profit

Other income is 177% of pre-tax profit — a large share of the profit comes from outside the core operating business.

Full read

Trailing other income ₹1,417 cr against pre-tax profit ₹799 cr. High other-income dependence means the headline profit is flattered by treasury, one-offs, or non-operating items rather than the core business.

Borrowing while holding investments

Borrowings rose 513% over two years while the company also carries ₹14,833 cr in investments. Why borrow at interest while parking money elsewhere is a fair question.

Full read

Borrowings moved to ₹4,592 cr from ₹749 cr. Simultaneous large investments can be legitimate treasury management, or a sign that reported cash is not freely available.

Price & Valuation 10-year, split-adjusted

Markers show corporate actions (splits, bonus, dividends). Prices are split-adjusted so the series is continuous.

Valuation & Quality

Valuation
P/E (TTM) 563x
P/B 9.15x
P/S 4.21x
Leverage
Debt / Equity conservative 0.15
Payout Ratio 0%
Returns & Margins
Operating Margin (TTM) -0.2%
Net Margin (TTM) 0.6%
Return on Equity -0.9%
Implied Growth (Graham) growth the market is pricing in 277.2%
Rule of 40 181.8
Growth 182% + Margin -0.2% — passes

Ownership & Skin in the Game

Promoter
FII29.09%
DII
Mutual Funds31.68%

Quarterly Financials ₹ cr

MetricSep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Revenue4,7995,4055,8337,16713,59016,31517,29220,211
Expenses4,5735,2435,7617,05213,35115,94716,80619,617
Other Income221252368354352348342375
Depreciation180247287314376439468546
Profit before tax2371249788129170228272
Net Profit1765939256510217492
EPS0.200.060.040.030.070.110.180.10

Balance Sheet ₹ cr, annual

ItemMar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital0764836868907919
Reserves7,64415,74118,62419,54529,41030,061
Borrowings527705077492,0454,592
Fixed Assets1,5391,4046,3446,4489,53212,675
CWIP0171851136
Investments2,2054,7186,76511,64513,19214,833
Total Assets8,70417,32721,59923,35635,62340,736
DISCLAIMER: FinMinutes is a financial data and analytics platform, not a SEBI-registered investment adviser. Everything here is for educational and informational purposes. Forensic interpretations are computed from disclosed data and are not recommendations. Do your own due diligence.