Blinkit, operated by Eternal, reported a significant rise in adjusted EBITDA to ₹102 crore in Q1 FY27, bolstered by an expanded dark store network and higher net order value, continuing its momentum in India's fast-growing quick commerce sector.
- Blinkit adds 200 new dark stores, totaling 2,443 across India
- Q1 adjusted EBITDA rises to ₹102 Cr from ₹37 Cr in prior quarter
- Eternal’s ‘Others’ losses widen due to Nugget AI platform R&D
What happened
Blinkit, Eternal’s quick commerce arm, posted an adjusted EBITDA of ₹102 crore in the first quarter of FY27, up from ₹37 crore in the previous quarter. This marks its fifth consecutive quarter of EBITDA improvement, driven by an 18.4% sequential rise in adjusted revenue to ₹15,664 crore and a 19% increase in net order value to ₹17,132 crore. Key to this growth was the aggressive expansion of Blinkit’s dark store network, which grew by 200 net new stores to 2,443 locations nationwide.
Eternal also disclosed enhancements to their investment strategy, raising the estimated capital expenditure per store from ₹1 crore to ₹2.5 crore due to larger store footprints and advanced warehousing technology. The company improved working capital efficiency to 12 days of net order value versus 18 days previously, anticipating sustainable returns on these investments. Alongside expanding core operations, Blinkit is rolling out premium ‘gourmet’ stores in select cities and broadening its presence across top-tier and emerging markets.
Why it matters
Blinkit’s growth reflects the rising demand for quick commerce in India, where consumer preferences increasingly favor rapid, seamless delivery of groceries and essentials. By building a broad dark store network and boosting store-level investments, Blinkit is strengthening its supply chain and service capabilities, key to long-term market leadership. The shift to a first-party inventory-led model also signals confidence in operational control and margin improvement, despite current inventory losses of approximately 1.8% of net order value.
However, Eternal’s consolidated performance shows mixed trends as the ‘Others’ segment, including the AI-powered Nugget platform and quick food delivery service Bistro, saw adjusted EBITDA losses widen to ₹94 crore, mainly due to intensified R&D spend on AI tooling. This dual approach—investing heavily in Blinkit’s core business while funding exploratory ventures like Nugget—highlights Eternal’s strategy to diversify its growth engines while maintaining financial discipline.
What to watch next
Market attention will focus on Blinkit’s continued store network expansion and supply chain investments, especially how effectively it can convert these capital inputs into profitable scale. Improvements in inventory management and replenishment planning will be critical to reduce losses and enhance margins under the 1P model. Monitoring the rollout and performance of premium and tier-2 market offerings will also offer insights into demand diversification.
Simultaneously, the financial trajectory of Eternal’s ‘Others’ segment, particularly the Nugget AI platform’s development and commercialization, will be important. The outcome of restructuring efforts, including Nugget’s transfer to a subsidiary and consolidation of philanthropic initiatives, may impact operating costs and focus. Investors will weigh the balance between innovation-driven losses and core business profitability in evaluating Eternal’s long-term prospects.