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Prameela Balakkala

21st Aug 2025 · SEBI-Registered Analyst

Eternal Ltd Forms New Subsidiary – Blinkit Foods Ltd: What It Means for Investors

ETERNAL
n August 18, 2025, Eternal Ltd launched a new wholly-owned subsidiary, Blinkit Foods Limited, to focus on the fast-growing food services and 10-minute cloud kitchen space. The move supports Eternal’s Bistro brand, which delivers fresh food quickly in cities like Bengaluru and Delhi-NCR. The new company will handle food prep, delivery, and innovation in this space. 📈 Why It Matters: Revenue up 70% YoY in Q1 FY26 (₹7,167 Cr) Quick commerce is now leading growth Some cities are already seeing positive margins Net profit, however, fell to ₹25 Cr due to high spending ⚠️ Key Risks: Still not consistently profitable High competition from Swiggy and Zepto Heavy investment needed for scale 💡 Outlook: This new company could help Eternal scale faster and improve margins, but success will depend on execution and market demand. For long-term investors, the incorporation of Blinkit Foods could mark the start of a more focused, streamlined business strategy in the ultra-fast food segment. If Eternal executes well, it could unlock new revenue channels, improve margins, and build brand loyalty in a high-growth sector. That said, short-term financials may stay under pressure, and investors should closely track how well Blinkit Foods scales while managing cost and quality.

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