Eternal Earnings Moment: How Blinkit Is Becoming the Growth Engine Beyond Zomato

Eternal Ltd, the parent company of Zomato and quick commerce platform Blinkit, is once again at the centre of market attention as it released Q3FY26 financial results that underscore not just strong topline growth but a fundamental shift in how the business is being perceived and valued. The quarter, driven by rapid expansion in quick commerce, validates a long-term strategic play that began with the Blinkit acquisition and is now driving revenue momentum as the legacy food-delivery business stabilises.

Investors have long watched Eternal’s attempts to balance growth with profitability. The third quarter of FY26 delivered numbers that matter in that context: robust revenue growth, rising profits, and clear signs that Blinkit, once a loss-making acquisition, is steadily becoming central to the business model.

Q3FY26: Revenue, Profit & Growth Highlights

Eternal’s consolidated revenue from operations surged sharply in Q3FY26, up over 195 per cent year on year to approximately Rs 16,315 crore, while net profit rose about 73 per cent YoY to Rs 102 crore, a significant rise from the prior period.

This performance stands in stark contrast to earlier quarters, where growth was more modest and profitability was inconsistent. That trend reversal owes much to the scale, volume and structural changes in business segments that Eternal operates.

A large portion of this revenue jump can be traced to growth in quick commerce through Blinkit, which has increasingly contributed to Eternal’s top line, reversing its earlier identity as a pure food delivery player. Analysts and market participants see this quarter as evidence of the organisation’s evolving revenue mix and its journey toward scale.

Q3FY26: Segment Revenue

In Q3 FY26, Eternal’s revenue mix clearly highlights the rapid transformation of its business model, with quick commerce emerging as the dominant growth engine. Quick commerce revenue surged to Rs 12,256 crore, up sharply from Rs 9,891 crore in Q2 FY26 and Rs 1,399 crore in Q3 FY25, reflecting the strong scale-up of the Blinkit platform and deeper penetration across urban markets.

The Indian food ordering and delivery segment delivered Rs 2,676 crore in revenue, showing steady sequential growth from Rs 2,485 crore in the previous quarter and year-on-year growth of over Rs 2,072 crore, indicating stabilisation and maturity in the core food delivery business. 

Hyperpure, the B2B supplies vertical, reported Rs 1,070 crore in revenue, largely stable compared to Rs 1,023 crore in Q2 FY26 and Rs 1,671 crore from Q3 FY26. Overall, total revenue from external customers stood at Rs 16,315 crore, underscoring that quick commerce alone now accounts for roughly three-fourths of quarterly revenue, decisively reshaping Eternal from a food delivery-led platform into a quick commerce-driven consumption ecosystem. 

Blinkit: From Acquisition to Growth Engine

The story of Blinkit’s rise is one of strategic foresight and aggressive scaling. Eternal acquired Blinkit in 2022 for approximately USD 568 million in an all-stock deal, a move that initially raised eyebrows given the fierce competition and thin unit economics in the quick-commerce segment.

Fast forward to FY25 and early FY26, and Blinkit’s contribution has grown dramatically from modest beginnings in Blinkit’s first full year under Eternal to a business now outpacing the core food delivery segment in net order value (NOV) on several occasions. In some quarters of FY26, Blinkit’s NOV even crossed the food delivery segment’s order value, highlighting its rapid adoption by consumers.

The reasons for this growth are structural and operational:

Inventory Led Model: Transitioning Blinkit toward a 1P inventory-led model helped improve gross margins and delivery efficiency. This shift aligns Blinkit more closely with Amazon's style of local fulfilment than pure marketplace dynamics, enabling faster delivery times and higher average order values.

Store Expansion: Blinkit accelerated its dark store expansion aggressively, with store counts growing year-on-year and plans to move from ~1,800 to over 2,100 stores, with long-term targets around 3,000 by March 2027.

Sustained NOV Growth: Brokerages have highlighted expected YoY growth in Blinkit’s NOV in excess of 120 per cent, even as food delivery growth has moderated.

These structural changes have begun to pay off not just in scale but in margins. Blinkit’s adjusted contribution margins improved sequentially, and adjusted EBITDA losses narrowed, indicating improved unit economics even while the business scales.

Beyond Blinkit: The Larger Revenue Mix

While Blinkit is the fastest-growing segment, Eternal’s ecosystem includes several complementary businesses:

Zomato Food Delivery: The legacy business remains a stable revenue and profitability foundation. It has historically delivered positive EBITDA and a solid core customer base, though growth rates have been more modest.

Hyperpure: The B2B supply chain arm supporting restaurants and cloud kitchens has shown solid expansion, riding on restaurant demand.

District: Built from the Paytm Insider acquisition, this events and “going out” platform aims to extend Eternal’s lifestyle reach, though monetisation here has been slower and more volatile.

This diversification strategy reflects Eternal’s ambition to transcend being a mere food delivery or quick commerce app and become a comprehensive local commerce ecosystem.

Strategic Lessons from the Blinkit Turnaround

Eternal’s handling of Blinkit offers several lessons on acquisitions and scaling:

1. Bold Acquisitions Can Flip Market Perceptions

When Eternal (then Zomato) bought Blinkit in 2022, the quick commerce model was seen as costly and unproven in India’s price-sensitive markets. The acquisition was viewed with scepticism. Today, Blinkit’s scale and contribution shift market perception toward growth potential.

2. Operational Shifts Matter as Much as Scale

Transitioning to an inventory-led model, even at the cost of higher upfront investment, improved control over logistics, stock assortment and delivery speed, allowing Blinkit to grow margins even while expanding rapidly.

3. Integration with Core Platform Drives Cross-Business Synergy

Blinkit benefits from Zomato’s user base, payment infrastructure and customer engagement channels. Cross-selling between segments has helped lower customer acquisition costs and improve engagement.

Leadership Change and Market Implications

Q3 FY26 also brought a major corporate development: Deepinder Goyal, founder and CEO, stepped down from the CEO role and transitioned to Vice Chairman, while Blinkit’s CEO, Albinder Singh Dhindsa, took over as Eternal’s CEO.

This leadership change signals the company’s confidence in Blinkit’s strategic importance. Choosing the Blaze (Blinkit) chief to lead the entire organisation reflects a pivot in growth priorities from traditional food delivery to quick commerce-led expansion.

Challenges and Competitive Landscape

Despite impressive growth, challenges remain:

Margin Pressure: Quick commerce still operates with thinner margins, and continued expansion depends on achieving sustainable unit economics.

Competition & Regulation: The broader quick-commerce segment has faced regulatory scrutiny over delivery promises (e.g., 10-minute delivery claims), which impacts branding even if not core operations.

Profitability vs Scale Balance: Investors remain wary of heavy spending on logistics and promotions, which could compress profitability in the short run

Yet the trend toward scale, improving economics and cross-segment synergy is clear.

What This Means for Investors and the Market

Eternal’s Q3 results offer more than just a quarterly snapshot; they highlight a strategic evolution. Blinkit has transitioned from an experimental asset to a core revenue driver. The food delivery business continues to provide profits and margins, stabilising the broader portfolio. Leadership changes reflect prioritisation of long-term growth engines.

Revenue surges around 195 per cent YoY, and profit growth of 73 per cent reinforce that Eternal’s redefined ecosystem is bearing fruit. For a company once criticised for heavy losses and overexpansion, this quarter marks a milestone: growth married with improving structural economics.

Disclaimer: The article is for informational purposes only and not investment advice.