Eternal Technologies demonstrated strong financial performance in the first quarter of FY27, with net profits soaring 3.7 times year-over-year to ₹92 crore, fueled primarily by Blinkit's rapid growth and improved unit economics alongside Zomato's margin expansion. However, emerging segments like AI and going-out platforms remain in investment mode, reflecting a balanced approach to growth and innovation.
- Net profit up 3.7X YoY to ₹92 Cr with operating revenue growing 182%
- Blinkit drives growth with over 77% of operating revenue and EBITDA gains
- Zomato boosts margins despite competitive low-commission pressures
What happened
Eternal Technologies reported a strong financial quarter for Q1 FY27, achieving a net profit of ₹92 crore, which is 3.7 times higher than the same period last year. Operating revenue surged 182% year-over-year to₹20,211 crore, driven primarily by Blinkit's aggressive expansion and user retention. Blinkit added 200 new dark stores, totaling 2,443, positioning itself as the key revenue engine with over 77% share of the company's operating income.
Zomato remained a solid profit center for Eternal, posting ₹3,100 crore in operating revenues and ₹606 crore in adjusted EBITDA. The company also announced internal restructuring, creating a dedicated AI subsidiary named Nugget and bringing community initiatives like Blinkit Ambulance Service under a nonprofit arm. However, Eternal's going-out platform continued to face losses despite growth in engagement and listings.
Why it matters
Eternal’s financial results indicate that its core food delivery and quick commerce segments are not only scaling rapidly but also improving profitability metrics. Blinkit's ability to leverage dark store density and supply chain efficiencies has resulted in improved unit economics and a sustainable growth model in the competitive quick commerce space. CEO Albinder Dhindsa's view that the worst discount wars are over signals a potentially more stable market environment ahead.
Zomato’s steady margin improvement despite competitors adopting low-commission strategies highlights Eternal’s strong operational execution and network effects in metro markets. The ongoing losses in the going-out vertical reflect the challenges of building new categories in India’s evolving foodtech ecosystem. Meanwhile, strategic investment in AI and community services underlines Eternal's efforts to diversify innovation avenues while maintaining a strong focus on social impact.
What to watch next
Market participants should watch how Eternal scales Blinkit's gourmet offerings and optimizes the density of its dark store network to maintain growth momentum and margin resilience. The transition away from hyper-discounting in quick commerce will be critical to establishing solid unit economics for sustained profitability.
The evolution of Eternal’s going-out vertical will be important given ongoing losses amid user base expansion. Additionally, the performance and strategic direction of the AI-focused Nugget subsidiary could signal Eternal’s efforts to capture emerging tech-driven opportunities in foodtech. Investors and industry watchers will also keep an eye on Eternal’s community and nonprofit initiatives as part of its broader corporate social responsibility approach.