Eternal dismisses AI disruption risk in Q2FY27 earnings call

Eternal’s Q2FY27 earnings call highlighted the company’s strategic focus on inventory, stores, and delivery networks as a defense against AI disruption. The leadership team emphasized that these measures would protect Zomato and Blinkit from the potential impact of AI shopping agents, while also positioning Blinkit to compete in e-commerce. This approach is outlined in Eternal’s shareholder letter and earnings call transcripts, where the company reiterated its stance on AI’s limited role in food delivery.

The company’s skepticism toward AI disruption was reinforced by its Q4FY26 report, which dismissed 223 instances of such concerns. According to the report, AI is unlikely to replace the physical aspects of food delivery, such as moving food through traffic or restocking shelves. This sentiment was echoed during the Q2FY27 call, where leadership expressed surprise at the continued focus on AI as a threat to the food delivery sector.

Eternal’s leadership cited a specific number, 223, as a reference point for dismissing AI disruption risks. This figure was used in its Q4FY26 report to argue that AI would not replace the logistical elements of food delivery. During the Q2FY27 call, Akshant Goyal, a key figure at Eternal, stated, 'It doesn’t make sense to us at all as well. We are equally surprised,' when asked about new companies entering the food delivery space.

In India, where Zomato and Blinkit operate, the market is closely watching how Eternal’s strategy plays out. The company’s focus on owning inventory and delivery networks could influence competition in the food delivery sector, potentially affecting smaller players and altering consumer expectations. However, the impact of this strategy on the broader market remains to be seen.

Eternal’s approach to AI and logistics has sparked debate among industry observers. While the company remains confident in its model, the long-term viability of its strategy will depend on factors such as cost efficiency, scalability, and the evolving role of AI in logistics. The market will likely continue to assess how well Eternal’s model withstands competition and technological changes.