Deepinder Goyal-led Eternal incorporates Blinkit Foods

Foodtech giant Eternal has announced the creation of a new wholly owned subsidiary, Blinkit Foods Private Limited, marking a strategic move to consolidate its presence in the fast-evolving quick commerce food delivery segment.

The unit, incorporated with an authorised share capital of Rs 1 crore, will focus on food services, spanning innovation, sourcing, preparation, sale, and delivery, Eternal said in an exchange filing on Monday.

While the company did not disclose specific plans, reports said Blinkit Foods is likely to power Bistro, Blinkit’s 10-minute ready-to-eat meal service, which has been expanding steadily across key metros.

In a letter to shareholders following its Q1 FY26 earnings, Eternal CEO Deepinder Goyal said Bistro currently operates 38 kitchens in Delhi NCR and Bengaluru. “Early data is encouraging as the kitchens are generating incremental demand without cannibalising the Zomato business,” he wrote. “We will continue to make calibrated investments towards building a scalable and profitable business.”

Eternal had previously experimented with two rapid food delivery formats, Quick and Everyday, but shuttered both due to low demand and operational constraints. Bistro, in contrast, has adopted an integrated kitchen model, moving away from restaurant partnerships to ensure greater control over preparation times.

The company's capital expenditure touched Rs 370 crore in the June quarter, with Rs 60 crore allocated toward Bistro kitchens, IT hardware, and related infrastructure. 

The remaining Rs 310 crore was channelled into expanding Blinkit’s store and warehouse network. Blinkit added 243 dark stores during the quarter, bringing its total to 1,544 and expanding its warehousing footprint to 5.6 million square feet—over 10 million square feet including store area.

Blinkit CEO Albinder Dhindsa noted that the company is on track to reach 2,000 stores by December 2025. He also highlighted improved operating leverage, with the business achieving -1.8% adjusted EBITDA margin (as a percentage of net order value), up from -2.4% in the previous quarter.

“Margins have likely bottomed out,” Dhindsa said, adding that certain cities are already generating over 2.5% positive margins. However, he cautioned that profitability trends may remain volatile amid competitive intensity.

Despite its topline soaring 70% to Rs 7,167 crore, Eternal’s consolidated net profit plunged 90% year-on-year to Rs 25 crore in Q1 FY26. Blinkit, which contributed Rs 2,409 crore in revenue, continues to report losses, Rs 162 crore in adjusted EBITDA this quarter versus Rs 178 crore in Q4 FY25. The revenue, however, jumped over 155% year-on-year.

One structural shift aiding growth is Blinkit's transition from a marketplace-led model to an inventory-led one. Eternal CFO Akshant Goyal said 3% of Blinkit’s net order value was fulfilled through its own inventory in Q1. This change helped drive revenue even as take rates remained flat. The company plans to complete this transition in the next two to three quarters.