Eternal Reports Strong Q1 Profits, Driven by Blinkit Growth
Foodtech giant Eternal announced a significant Q1 earnings report, with net profit rising nearly fourfold and revenue more than doubling year-over-year.
Foodtech company Eternal has reported a robust first quarter, with net profit soaring by 3.7 times year-over-year to ₹92 crore and operating revenue increasing by 182% to ₹20,211 crore. The company's quick commerce arm, Blinkit, was the primary driver of this growth.
Blinkit accounted for over 77% of Eternal's total operating revenues, fueled by the addition of 200 new dark stores and improved user retention in major metropolitan areas. The vertical achieved an adjusted EBITDA of ₹102 crore, indicating strengthening unit economics. CEO Albinder Dhindsa believes the intense discounting wars in the quick commerce sector have subsided.
The company's core food delivery business, Zomato, contributed ₹3,100 crore in operating revenue and ₹606 crore in adjusted EBITDA. Increased order frequency and network density helped improve margins. In contrast, the 'going-out' platform, which offers dining and entertainment experiences, continued to incur losses despite scaling engagement.
Eternal also announced internal restructuring, carving out its AI platform Nugget into a separate subsidiary and consolidating community initiatives under a non-profit arm. Despite ongoing investments in AI and the 'going-out' segment, the company demonstrated strong overall financial performance.