Blinkit Surpasses Zomato: What It Means for Eternal’s Shareholders

Eternal’s quick commerce arm, Blinkit, has overtaken Zomato’s food delivery business in net order value (NOV) for the first time during the April-June 2025 quarter. Blinkit’s NOV surged 127% year-on-year to ₹9,203 crore, while Zomato’s rose a modest 13% to ₹8,967 crore. Driven by Blinkit’s performance, Eternal’s consolidated revenue jumped 70% year-on-year to ₹7,167 crore, beating analyst expectations. However, this rapid growth came with a cost: net profit plunged 90% to only ₹25 crore, far below market estimates, mainly due to heavy investments in expanding stores and warehouses. Key developments: Blinkit added 243 new stores this quarter, now totaling 1,544, with a goal to reach 2,000 by year-end. Adjusted revenue from Blinkit more than doubled to ₹2,400 crore, compared to Zomato’s 16% growth to ₹2,261 crore. Blinkit edges closer to profitability, with EBITDA margin improving to -1.8% of NOV (up from -2.4% last quarter), and some cities already seeing positive margins. Despite the sharp profit drop, Eternal’s shares rose 5.38% after the results, reflecting investor optimism about the quick commerce segment’s future. From a shareholder perspective, Blinkit’s aggression brings both promise and risk. Positive: Blinkit is now the company’s largest B2C business, driving overall topline growth and positioning Eternal as a leader in the booming quick commerce space. This can deliver long-term shareholder value as the segment matures and margins improve. Negative: Near-term, profit is under pressure due to elevated costs and competition from players like Zepto and Instamart. If losses persist or competition intensifies, this could hurt valuations and investor confidence. Long-term value will depend on Blinkit’s ability to scale profitably and sustain its market lead. For shareholders, patience may be needed, but the structural shift towards fast commerce could ultimately pay off handsomely if execution remains strong and market conditions stabilize.