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Eternal, the parent company of Blinkit and Zomato, reported a consolidated net profit of ₹92 Cr in the first quarter of FY27, up nearly 3.7X from ₹25 Cr in the year-ago quarter. However, profit declined 47% sequentially from ₹174 Cr.

Operating revenue surged 182% YoY and 17% QoQ to ₹20,211 Cr during the quarter under review. The sharp YoY jump was largely driven by Blinkit’s transition to an inventory-led business model, under which the company now recognises the gross value of goods sold as revenue instead of only commissions.

Including other income of ₹375 Cr, total income stood at ₹20,586 Cr.

Total expenses rose to ₹20,314 Cr during the quarter, while tax expenses came in at ₹180 Cr.

Blinkit remained Eternal’s largest revenue contributor, with revenue rising 18% sequentially and 7X YoY to ₹15,664 Cr. This is a 117% like for like growth on a YoY basis. The vertical also registered an operating profit of ₹365 Cr, a ₹100 Cr jump from last quarter.

Meanwhile, Zomato’s food delivery business continued its steady growth trajectory and raked in an operating profit of ₹621 Cr. Zomato’s revenue increased 13% QoQ and 37% YoY to ₹3,100 Cr.

However, Eternal’s B2B arm, Hyperpure, reported revenue of ₹1,034 Cr and operating profit of ₹14 Cr. While reported revenue declined 55% YoY due to changes in business mix, the company said its like-for-like revenue grew 27% during the quarter.

District, Eternal’s going-out business, posted a 54% YoY increase in revenue to ₹318 Cr, while its loss increased to ₹61 Cr from ₹48 Cr in the year-ago quarter.

‘Others’ segment, which includes Bistro, Nugget, among others, reported a revenue of ₹95 Cr, while its loss doubled YoY to ₹90 Cr. The increase in loss was largely driven by R&D investments in Nugget as the company scales its AI product capabilities.

Separately, Eternal’s board approved an internal restructuring of its AI business.

As part of the exercise, Nugget will be transferred to its wholly owned subsidiary Carthero Technologies Pvt Ltd through a slump sale for ₹35 Cr.

Eternal launched Nugget, an AI-native, no-code customer support platform to provide AI agents ranging from conversational AI chatbots to co-pilots, in February 2025. Its turnover for FY26 stood at ₹7.6 Cr.

Besides Nugget, Eternal is also consolidating its community initiatives, Blinkit Ambulance Service and Feeding India into a wholly owned section 8 (not for profit) subsidiary, Eternal General Services Foundation.

Here’s a snapshot at Eternal’s quarterly report.

The food delivery segment has seen increased competition over the past few quarters with the launch of new platforms such as Swiggy-backed Toing and Rapido’s Ownly, which have relied on lower commissions and delivery fees to attract customers.

However, Eternal founder and vice chairman Deepinder Goyal said the impact on Zomato has been “limited”.

“There’s no new use case being unlocked here. The customer traction is purely price driven, and price-driven traction without structural economics tends to resolve itself,” Goyal noted.

Instead, Eternal is focusing on Bistro, its quick food delivery platform, which Goyal described as the company’s answer to the low-ticket food delivery segment. The company is redesigning kitchen operations, automation and supply chain infrastructure to improve freshness, speed and consistency.

Eternal reiterated that it will continue investing aggressively in Blinkit’s expansion despite the capital-intensive nature of the business.

CFO Akshant Goyal said the company has invested about ₹3,000 Cr in capital expenditure over the past four years to build Blinkit’s network of stores and warehouses, adding that the investments will continue as long as they generate healthy returns.

He added that Blinkit’s inventory-led model, while requiring higher working capital, makes the business more durable over the long term.

Notably, ecommerce giants Flipkart and Amazon have stepped up investments to scale their quick commerce platforms, further increasing the competition in the segment, where Blinkit competes with Instamart and Zepto, over the past few quarters.

Blinkit also disclosed that inventory losses, including expiry, shrinkage, damage, loss in transit and pilferage, currently account for about 1.8% of its net order value (NOV). Blinkit’s NOV grew 86% YoY to ₹17,132 Cr during the quarter, while it added 200 net new stores, taking its network to 2,443 stores.

District registered a 60% YoY jump in its NOV to ₹3,218 Cr. While IPL matches contributed to activity during the period, Deepinder Goyal said the strong growth was not a seasonality-driven spike.

“The acceleration is real, driven by the platform coming together as a unified multi-use-case app and the compounding effects of that breadth on customer engagement and frequency,” he said.

According to the company, District now generates business for more than 45,000 restaurants, 5,000 movie screens, 6,000 retail stores, 7,500 live events and over 2,000 activity outlets across India.

Shares of Eternal ended today’s trading session 1.15% lower at ₹283.40 on the BSE.

Edited by Vinaykumar Rai

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