While food delivery NOV growth slowed to 13% YoY from 14%, Blinkit posted 25% sequential growth. As a result, the stock ended over 5% higher at Rs 271.20 on the BSE.
Here are 10 key takeaways from Eternal’s Q1 results:
1. Quick commerce becomes the crown jewel
Blinkit CEO Albinder Dhindsa said the platform added 243 net new stores in Q1FY26, taking the total to 1,544, and is “on track to get to 2,000 stores by Dec 2025.” Blinkit’s 127% YoY NOV growth was driven by a 123% jump in monthly transacting customers—from 7.6 million to 16.9 million.
CEO Deepinder Goyal called it a historic milestone: “This was the first quarter where our quick commerce NOV exceeded food delivery NOV for the full quarter.”
2. Revolutionary leadership model shakes up management structure
Goyal unveiled Eternal’s “Rotational Leadership” model, where the CEO role of each business is time-bound, typically two years. Aditya Mangla, a four-year veteran from the product/engineering side, now leads Zomato’s food delivery business—marking the first time someone outside Goyal is heading it.
3. Profitability takes a backseat to growth ambitions
Adjusted EBITDA fell 42% YoY to Rs 172 crore due to continued investments in quick commerce and the “going-out” vertical. CFO Akshant Goyal said NOV of B2C businesses rose 55% YoY to Rs 20,183 crore, but growth remains the top priority.
4. Food delivery growth shows signs of deceleration
Food delivery NOV growth moderated to 13% YoY from 14% in the previous quarter. Goyal admitted: “It’s unlikely we’ll hit 20%+ NOV growth in FY26, but should stay north of 15%.”
5. Going-out business emerges as a major growth driver
The “District”-centered going-out vertical scaled to a Rs 8,000 crore annualized NOV, about 20% the size of the food and quick commerce businesses. With better unit economics (Rs 160+ revenue/order), Akshant projects it could scale to $3 billion NOV and $150 million EBITDA in 5 years.
6. Inventory ownership transition begins
CFO Akshant Goyal announced a shift from a marketplace to an inventory-led model in quick commerce over the next 2–3 quarters. This could improve margins by 1 percentage point. Eternal also became an Indian Owned and Controlled Company (IOCC) with foreign shareholding capped at 49.5%.
7. Ambitious ROCE projections for quick commerce
If EBITDA margins reach 5–6% of NOV, ROCE could touch 40%. Eternal projects total investment requirements of 9% of NOV (4% capex + 5% working capital), offering high returns on capital.
8. New ventures drain resources but show promise
Goyal highlighted investments in Bistro, the 10-minute food delivery service: “We have 38 kitchens live in Delhi-NCR and Bangalore.” Eternal is budgeting Rs 150 crore in FY26 loss funding across Bistro, Nugget, and other initiatives.
9. Balance Sheet remains fortress-strong
Cash rose slightly to Rs 18,857 crore in Q1FY26 (from Rs 18,824 crore in Q4FY25). Capex stood at Rs 370 crore, with Rs 310 crore allocated to expanding the quick commerce store and warehouse network.
10. Competitive positioning strategy against new entrants
Goyal said: “New entrants and disruption are inevitable. But we aim to adapt, out-innovate, and stay ahead. Currently, we see no major threat.” Dhindsa added: “We will not cede market position or lose sight of the long-term prize.”
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
