ETERNAL

(Zomato): Blinkit-Fueled Growth Brings Scale — and New Challenges

(formerly Zomato) reported a stellar Q2FY26 performance, driven primarily by Blinkit’s explosive growth and steady profitability in the food delivery business. The company’s shift to an inventory-led model in quick commerce has substantially boosted revenue but also increased working-capital intensity and cash flow strain. Financial Highlights (Q2FY26) Adjusted revenue: ₹13,590 crore — up 183% YoY and 89.6% QoQ, led by the Blinkit business model transition. Like-for-like (LFL) revenue growth: 65% YoY, excluding Hyperpure and owned inventory sales, indicating healthy underlying demand. B2C Net Order Value (NOV): ₹23,164 crore, up 56.8% YoY and 14.8% QoQ, with Blinkit contributing the majority of incremental growth. Adjusted EBITDA: ₹224 crore — up 30% QoQ, though down 32% YoY due to ongoing investments in Blinkit’s store expansion and marketing. Blinkit Becomes the Growth Engine Blinkit’s NOV grew 137% YoY, its strongest in two years. Added 272 new stores, taking total count to 1,816; targets 2,100 by end-FY26 and 3,000 by FY27. The own-inventory model, now covering 80% of NOV, will extend to 90% next quarter — a strategic shift toward retail control. Profitability and Efficiency Challenges EBITDA margin improved slightly to –1.3% (from –1.8% in Q1). Marketing spend surged 4x YoY, reflecting continued customer acquisition focus. Net working capital in quick commerce rose to ~12 days of annualised NOV, highlighting rising capital intensity. Outlook: Balancing Speed and Sustainability Blinkit anchors Eternal’s long-term growth story, but the focus now shifts to capital discipline and margin recovery. As scale stabilizes, profitability is expected to improve gradually, though near-term margins may remain constrained by aggressive expansion.