Eternal, the company behind Zomato and Blinkit, delivered two big surprises this week: its quick-commerce arm Blinkit reported its first positive adjusted EBITDA, and founder Deepinder Goyal announced he would step down as chief executive, handing over the role to Blinkit head Albinder Dhindsa.
International brokerage firm Jefferies called the twin developments a sign of the business’s underlying strength, even as competition in quick commerce remains intense.
The brokerage said Blinkit’s profitability came “at a time when competitive intensity seems to be near its peak,” helped by higher average order values, a favourable product mix, a shift to a first-party (1P) inventory model and benefits from past investments.
Leadership change, but no sudden shift in strategy
Goyal will move into the role of vice chairman, while Dhindsa becomes group CEO. However, Jefferies said the transition is unlikely to lead to any major near-term changes in how the business is run.
“Management clarified that this will not cause a major change (at least in the near term),” the brokerage wrote, adding that Dhindsa will continue to focus on Blinkit, where “there is significant job at hand,” while Goyal will stay involved in long-term strategy, culture, leadership development, and ethics and governance.
The brokerage described the move as a “change but no change” moment, signalling continuity rather than disruption at a time when the company is scaling multiple businesses at once.
Blinkit hits a milestone in a tough market
The standout operational update was Blinkit turning EBITDA-positive for the first time. Adjusted EBITDA for quick commerce came in at Rs 40 million in the December quarter, compared with losses of Rs 1–2 billion in each of the previous four quarters. This was despite heightened competition and a recent GST cut, which had a roughly 3 percentage point impact on margins.
The management attributed the turnaround to supply chain efficiencies, a better product mix and operating leverage. Nearly 90% of Blinkit’s net order value (NOV) has now shifted to the 1P model, a move that added more than 50 basis points to EBITDA margins and is expected to deliver a total of 100 basis points of margin improvement within the next six to nine months.
Blinkit also continued to expand its physical footprint, adding 211 stores in the December quarter to take its dark store count to 2,027. While this was slightly below management’s earlier target, the company maintained its guidance of reaching 3,000 stores by March 2027.
Food delivery regains momentum
Eternal’s core food delivery business also showed signs of steady recovery. Net order value grew 17% year-on-year and 4% quarter-on-quarter, supported by a modest improvement in demand, a reduction in the minimum order value for Gold users, and continued investments in customer activations.
The segment’s adjusted EBITDA rose to Rs 5.3 billion, translating into margins of 5.4% on NOV. Jefferies noted that the take rate improved by 60 basis points quarter-on-quarter, even as contribution margins stayed flat due to ongoing investments. Management expects NOV growth in food delivery to trend towards 20% over time.
Other bets: Hyperpure and going-out
Beyond food delivery and quick commerce, Eternal’s other verticals also saw mixed but notable developments. Hyperpure, its B2B supplies business, turned EBITDA-positive for the first time, even though revenue declined about 36% year-on-year, largely due to the shift to the 1P model in quick commerce.
The “going-out” segment, covering dining-out experiences and events, posted 20% year-on-year growth in NOV. However, losses widened quarter-on-quarter, as the company stepped up investments in category creation, including live events and its District Pass membership programme.
Jefferies said losses in the “others” category, including Bistro, remained at around Rs 500 million, driven largely by continued investments.
Strong balance sheet, steady outlook
Eternal ended the quarter with net cash of about $2 billion, even as capital expenditure and working capital requirements rose during the period.
Jefferies retained its ‘buy’ rating on the stock and raised its EBITDA estimates following the strong third-quarter performance. It set a price target of Rs 480, implying an upside of 78% from the prior closing price, and said the likely hike in profitability marks a structurally positive shift for the business.