In a strategic move to deepen its footprint in the fast-growing quick commerce segment, Deepinder Goyal-led Eternal has incorporated a new wholly owned subsidiary, Blinkit Foods Private Limited, according to an exchange filing made on Monday.
The newly formed entity, established with an authorised share capital of ₹1 crore, will focus on a wide range of food services—including innovation, sourcing, preparation, sale, and delivery. While Eternal did not disclose specific operational details, industry sources indicate that Blinkit Foods is likely to support Bistro, Blinkit’s 10-minute ready-to-eat meal initiative that has been gradually scaling across urban metros.
Bistro Grows With Integrated Kitchens
In his letter to shareholders following Eternal’s Q1 FY26 results, CEO Deepinder Goyal shared that Bistro currently runs 38 kitchens in Delhi NCR and Bengaluru. He added, “Early data is encouraging as the kitchens are generating incremental demand without cannibalising the Zomato business. We will continue to make calibrated investments towards building a scalable and profitable business.”
Unlike past experiments such as Quick and Everyday, which were discontinued due to weak demand and logistical hurdles, Bistro operates via an integrated kitchen model—eschewing restaurant tie-ups in favour of in-house preparation to improve control and speed.
Capital Allocation and Expansion
Eternal reported a total capital expenditure of ₹370 crore for the June quarter, with ₹60 crore earmarked for building Bistro kitchens, IT hardware, and support infrastructure. The remaining ₹310 crore was directed toward scaling Blinkit’s store and warehouse footprint.
Blinkit added 243 new dark stores during the quarter, taking the total count to 1,544, while warehouse capacity expanded to 5.6 million sq. ft.—or over 10 million sq. ft. including store areas. According to Blinkit CEO Albinder Dhindsa, the platform is on track to reach 2,000 stores by December 2025.
He noted improving financial efficiency, stating: “Margins have likely bottomed out,” with adjusted EBITDA margins improving to -1.8%, up from -2.4% in the previous quarter. He also mentioned that some cities are already generating margins above 2.5%, though he cautioned that profitability trends may remain volatile in a competitive environment.
Financial Snapshot
Despite Eternal’s topline surging 70% YoY to ₹7,167 crore in Q1 FY26, consolidated net profit dropped sharply by 90% to ₹25 crore. Blinkit contributed ₹2,409 crore in revenue, more than 155% higher YoY, but continued to post a loss, reporting an adjusted EBITDA deficit of ₹162 crore, compared to ₹178 crore in the previous quarter.
A key structural evolution aiding this growth is Blinkit’s shift from a marketplace-led model to an inventory-led one. Eternal CFO Akshant Goyal revealed that 3% of Blinkit’s net order value in Q1 was fulfilled through in-house inventory, helping increase revenue even with flat take rates. The company aims to complete this transition over the next two to three quarters.
