Eternal Reports Fourfold Increase in Q4 Net Profit to ₹174 Crore, Driven by Strong Blinkit Growth

Eternal Ltd Sees Sharp Growth in Net Profit, Driven by Blinkit's Expansion

Bengaluru: Eternal Ltd, the parent company of Zomato and quick commerce platform Blinkit, reported a significant 346% year-on-year jump in net profit to ₹174 crore for the March quarter. This growth is largely attributed to strong expansion in Blinkit's net order value and improving operating leverage.

The company's consolidated operating revenue rose 196% YoY to ₹17,292 crore during the quarter. The primary driver of this growth was the quick commerce service Blinkit, which saw a 95% increase in net order value (NOV) to ₹14,386 crore, compared to the same period last year. This growth is largely due to rapid unit expansion and accelerated store rollout.

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Blinkit's NOV growth compound annual growth rate (CAGR) is expected to be north of 60% in the next three years. The service has also seen a significant improvement in its adjusted Ebitda, swinging back to a positive ₹37 crore during the quarter, from a negative ₹178 crore in the same period last year.

Blinkit fulfilled 273.9 million orders and added 216 dark stores during the quarter. The net average order value was ₹525.

Eternal's food delivery business, led by Zomato, posted relatively steady growth, with revenue increasing 33% to ₹2,737 crore. The NOV of the food delivery arm reached ₹9,757 crore, up 19% from the previous year. The company's shares on Tuesday closed 1.09% higher at ₹258.28 on the National Stock Exchange in a largely weak market.

However, the quick commerce landscape has grown increasingly competitive, with rivals stepping up investments and scale. Rival Swiggy's Instamart has reported strong order growth and expanding coverage, while Zepto filed draft papers with the public markets regulator Sebi in December. Meanwhile, Reliance Retail's JioMart has accelerated its quick delivery push, using its supply chain and merchant network to deepen reach and improve unit economics.

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Despite the intensifying competition, Eternal's management remains confident of achieving its guidance of 5-6% margins. The company underwent a management reshuffle last quarter, with leadership changes aimed at sharpening execution across its businesses and driving long-term profitability.