Eternal revises Blinkit store target as Q2 net profit rises 92%

Eternal Ltd has raised Blinkit’s store expansion target to 3,500 by March 2027 from an earlier goal of 3,000, and expects to reach about 5,000 stores by March 2028, as it gains confidence in the economics of expansion into smaller cities and newer product categories.

Blinkit added 308 net stores in the September quarter, taking its network to 2,751. Management expects adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) margins to keep improving despite the faster rollout, with gains from mature stores expected to offset the initial drag from new outlets, its Q2 FY27 shareholders' letter noted.

Eternal's consolidated revenue from operations rose 77.6% year-on-year to ₹24,138 crore in the September quarter, while total expenses climbed 75% to ₹24,166 crore. Net profit increased 92.3% to ₹125 crore from ₹65 crore a year ago, according to the company’s consolidated financial results.

Quick answers to key questions

•5 QUESTIONS

1

What are Eternal’s Q2 FY27 results?⌵

Eternal’s consolidated revenue from operations rose 77.6% year-on-year to ₹24,138 crore in the September quarter. Net profit increased 92.3% to ₹125 crore from ₹65 crore a year earlier.

2

How many Blinkit stores does Eternal plan to open by March 2027?⌵

Eternal raised Blinkit’s store target to 3,500 by March 2027, up from its earlier goal of 3,000. It expects the network to reach about 5,000 stores by March 2028.

3

Why is Eternal accelerating Blinkit’s store expansion?⌵

Management said it has greater confidence in expansion economics, including in smaller cities and newer product categories. It also said competition has become more predictable, while smaller cities offer attractive paybacks and lower competition.

4

Did Blinkit become profitable in Q2 FY27?⌵

Yes. Blinkit reported adjusted Ebitda of ₹184 crore, compared with a loss of ₹156 crore a year earlier. Its adjusted Ebitda margin improved for the sixth consecutive quarter to 0.9% of net order value.

5

How did Blinkit’s net order value grow in Q2 FY27?⌵

Blinkit’s net order value rose 79.3% year-on-year to ₹20,940 crore and increased 22.2% sequentially. Eternal’s CFO said growth had moderated partly because Blinkit was comparing against a larger base.

Consolidated business-to-consumer net order value (NOV), which measures the gross value of orders placed on the platform minus discounts, grew 54% on-year to ₹35,644 crore in the quarter. Adjusted revenue rose 76% to ₹24,621 crore, while adjusted Ebitda increased 197% to ₹666 crore.

Blinkit’s NOV rose 79.3% on-year to ₹20,940 crore, with sequential growth of 22.2%. Its adjusted Ebitda margin improved for the sixth consecutive quarter to 0.9% of NOV, translating into a profit of ₹184 crore against a loss of ₹156 crore a year ago.

“On growth, NOV growth has moderated over the last three quarters to about 79% on-year in Q2FY27, mainly because we are now comparing against a much larger base. With more stores going live and ramping up over the next few quarters, we expect growth to pick up from here,” said Akshant Goyal, chief financial officer of Eternal.

“Over the longer term, we are two quarters into the three-year period covered by our 60% CAGR guidance. We are tracking ahead of it so far, but it is too early to revise it upwards,” Goyal added.

Eternal said it was more confident in accelerating Blinkit’s expansion after assessing rivals’ strategies and the competitive impact on its business. “Competition is more predictable now. And that provides an opportunity for us to become more aggressive on infrastructure expansion,” management said on the analyst call.

Smaller cities are expected to account for a substantial share of new stores, with attractive paybacks in these markets and lower competition, while early entry could help secure customers.

Cities contributing about 96% of Blinkit’s NOV are contribution-positive, while those accounting for about 70% are adjusted Ebitda-positive, the company said.

Zomato’s food-delivery NOV grew 21.5% on-year to ₹11,445 crore, extending its growth acceleration to a fifth consecutive quarter. Adjusted Ebitda rose 25% to ₹627 crore, although the margin edged down to 5.5% of NOV.

Management acknowledged that competitive intensity increased in the September quarter, with Zomato itself investing more aggressively in customer acquisition and order frequency. It expects this approach to continue, with margins remaining broadly flat over the next one to two years.

“We can drive more growth in absolute adjusted Ebitda by investing more in growth rather than optimizing for margins,” Goyal said on the call.

The company reiterated its long-term expectation of annual food-delivery growth above 20%, citing rising customer adoption and the relatively low share of restaurant meals ordered online in India. Average monthly transacting customers rose 16% on-year to 28 million.

“We have been aggressively investing in growth, and we are seeing good outcomes on certain investments that we have experimented with in the last few quarters; it is paying off well,” Goyal added.

Eternal on Wednesday announced Dark AI, a privacy-focused AI assistant built using open-weight models, with end-to-end encryption and an encrypted memory layer. The product is still in development, and the company has yet to finalize its monetization and go-to-market plans.

“If it works, it will become really big. I think it’s more like a zero-one bet at this point. If it works, it’s a global business,” Albinder Dhindsa, Eternal’s chief executive, said on the call, adding that the next 12 months should indicate whether its AI initiatives can become meaningful.

Also Read | Why are investors rewarding Eternal over Swiggy?

Meanwhile, Eternal’s restaurant-supply business Hyperpure reported revenue growth of 22.7% to ₹1,154 crore and adjusted Ebitda of ₹10 crore, compared with a loss of ₹5 crore a year ago. It now serves about 85,000 restaurants, up from 62,000 a year ago, and is betting that two-hour deliveries will encourage restaurants to shift more procurement to the platform.

Eternal ended September with a cash balance of ₹16,475 crore, down ₹1,813 crore during the quarter, largely due to seasonal working-capital requirements, including inventory built ahead of the festive season.

Eternal’s shares on Wednesday closed 2.45% lower to settle at ₹312.35 apiece on National Stock Exchange.

Sowmya is a senior correspondent covering retail, FMCG, corporate strategy, and consumer technology, with a focus on how companies navigate demand, competition, and shifting consumption patterns across both urban and emerging markets. She reports on business decisions through both breaking news and long-form stories.<br><br>An alumna of the Asian College of Journalism, she has reported on a range of consumer-facing industries, including e-commerce, healthcare, and startups. Her work focuses on understanding how companies grow, compete, and adapt in a changing economic environment, as well as how broader trends translate into everyday consumption and business outcomes.<br><br>She is particularly interested in how business decisions show up in everyday consumer experiences, and often looks at trends through the lens of how they play out on the ground.<br><br>Prior to her current role, Sowmya was part of the editorial team at YourStory, where she covered startups and entrepreneurship. She has also worked on longform stories at The Morning Context and reported on technology at The Hindu in Chennai, gaining experience across different formats and newsrooms.<br><br>Her reporting aims to be accurate and accessible, with an emphasis on context and careful sourcing. She is particularly interested in stories that sit at the intersection of business strategy and consumer behaviour.<br><br>Based in Bengaluru and always curious about evolving consumption trends, she is often exploring new coffee and kombucha spots, both as a personal interest and a way to observe how consumer preferences are taking shape on the ground.

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