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Eternal’s Q1FY27: Food Delivery Hits 20% Growth Target, Blinkit Tops FY27 Projections

INFORMED Newsroom ·

Eternal Ltd—the parent of Zomato, Blinkit, and District—reported Q1FY27 results on July 22, 2026, delivering numbers that broadly met or exceeded the trajectory the company itself had been charting over the past year. Consolidated B2C net order value (NOV) surged 54% year-on-year to ₹31,120 crore, while Adjusted EBITDA jumped 223% to ₹555 crore. Net profit dipped sequentially to ₹92 crore from ₹174 crore in Q4FY26, entirely because tax provisions kicked in as the standalone entity exhausted its past losses—exactly the scenario management had flagged in the shareholder letter . The six-quarter table below shows the magnitude of the quick-commerce transformation: revenue from operations has nearly quadrupled from ₹5,833 crore in Q4FY25 to ₹20,211 crore in Q1FY27, while EBITDA has more than doubled.

EBITDA computed as Profit before tax + Finance costs + Depreciation & amortisation. The sharp revenue jump from Q2FY26 reflects the shift to an inventory-ownership model in quick commerce, where revenue now includes the full value of goods sold. The company therefore also reports Adjusted Revenue, which for Q1FY27 was ₹20,648 crore, up 173% YoY. B2C NOV for Q4FY25 is not disclosed. The PAT dip from Q4FY26 to Q1FY27 is due to a provision for income tax on business income as carried-forward losses in the standalone parent were fully utilized in FY27 .

Food Delivery Delivers on the 20% Target

Zomato’s food delivery NOV grew 20.1% YoY to ₹10,769 crore, precisely hitting the 20% milestone that CFO Akshant Goyal had been guiding toward since January 2026. Back in the Q3FY26 call, he said growth was “slowly trending up towards 20%,” and the Q1FY27 result marks four consecutive quarters of acceleration—from 13.1% in Q1FY26 to 20.1% now . As recently as the Q2FY26 call (October 2025), management had described 20% growth as a longer-term aspiration and expected FY26 to deliver only about 15% . The actual FY26 exit rate exceeded that, and the first quarter of FY27 now establishes a new higher base.

Margins expanded alongside growth: Adjusted EBITDA rose 34% YoY to ₹606 crore, with the margin reaching 5.6% of NOV—approaching the upper end of the company’s 5–6% steady-state guidance. CEO Deepinder Goyal said in the letter, “We don’t think about it as a trade-off. If we’re doing our job well, growth and margins should compound together” . Monthly transacting customers climbed to 27.2 million from 25.4 million in the prior quarter, and active delivery partners rose to 638,000 . Management also noted that the impact of new competitors like Toing and Ownly has been limited, calling their traction “purely price-driven” and “unsustainable” .

Blinkit Tops FY27 NOV Growth Projections

Blinkit’s NOV surged 86% YoY to ₹17,132 crore, with quarter-on-quarter growth accelerating to 19% from 8% in Q4FY26 . That pace is ahead of the 70–80% range that management had indicated for FY27 during the Q4FY26 earnings call, after acknowledging that the earlier 100%+ expectation would not hold . The business continues to add scale rapidly: 200 net new stores took the total to 2,443, and average NOV per store per day rose to ₹8.27 lakh from ₹7.68 lakh . The company is on track for its previously stated goal of 3,000 stores by March 2027.

Profitability improved for the fifth straight quarter: Adjusted EBITDA swung from a loss of ₹162 crore a year ago to a profit of ₹102 crore, with the margin reaching 0.6% of NOV . This is the result of the deliberate shift to an inventory-ownership (1P) model that began in Q1FY26. At the time, management estimated the shift would add roughly 100 basis points to contribution margin . By Q3FY26, half of that accretion had already materialized, and the full benefit was expected within six to nine months . The Q1FY27 letter now provides an updated ROCE framework based on a full year of 1P operating data: capex per store of ₹2.5 crore (up from ₹1 crore, reflecting larger stores and automation), net working capital of 12 days of NOV (down from 18 days), and NOV per day per store of ₹11 lakh (up from ₹7 lakh). At a 4% EBIT margin, this implies a pre-tax ROCE of 41.7% . The company has invested roughly ₹3,000 crore in capex over four years, and net working capital stands at ₹2,545 crore.

Customer retention data, disclosed for the first time, reinforces the long-term thesis. The average Q4 retention rate across all cohorts is 46%, with the most recent cohort (Q1FY26) at 50%. NOV retention compounds even faster—a cohort of customers is spending nearly 3x with Blinkit three years after acquisition than they did in their first quarter . This data was first previewed on the Q4FY26 call, where management noted that competitors had pulled back on marketing, lowering customer acquisition costs .

Going-Out Exceeds Long-Term Growth Target, Losses Within Guided Range

District, the going-out platform, grew NOV by 60% YoY to ₹3,218 crore—well above the 30%+ long-term target management set and the ~20% growth rate discussed in the Q3FY26 call . Deepinder Goyal noted that the acceleration was not just seasonality (the IPL was in the same quarter last year) but the compounding effect of a unified app covering 45,000+ restaurants, 5,000+ movie screens, and 7,500+ events . Management had previously guided that quarterly losses would remain range-bound around ₹60–70 crore, and indeed the Adjusted EBITDA loss came in at ₹65 crore, improving from ₹81 crore in Q4FY26 .

Hyperpure: The Expected Revenue Reset Plays Out

Hyperpure’s reported revenue of ₹1,034 crore showed a 55% YoY decline, but this was entirely anticipated. As early as the Q1FY26 call, management had flagged the exit of the non-restaurant marketplace business, which had inflated prior-year revenues . Like-for-like growth, which strips out that discontinued piece, came in at 27% YoY . The business also turned profitable at the Adjusted EBITDA level—a gain of ₹24 crore over last year’s loss—validating the strategic pruning.

Others: The Cost of Experimentation

The Others segment—which now includes Bistro, Nugget, Greening India, and community initiatives—posted an Adjusted EBITDA loss of ₹94 crore, widening from ₹45 crore a year ago . The increase was driven primarily by R&D in Nugget, the AI product initiative. In a parallel announcement, the board approved the slump sale of the Nugget business to subsidiary Carthero Technologies for ₹35 crore in cash, citing a need to streamline the corporate structure . Nugget generated only ₹7.20 crore in revenue last year (0.07% of Eternal’s standalone revenue). Bistro, the 10-minute food delivery experiment, remains in the segment and was described on the Q4FY26 call as “still a small experiment” with “early signs of a business model evolving” . Management reiterated that it will invest meaningfully but shut things down if they don’t show promise .

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Sources

  1. 1 Eternal limited has filed with exchange copy of shareholders letter dated July 22, 2026
  2. 2 Earnings-call transcript, Jul 2025
  3. 3 Earnings-call transcript, Oct 2025
  4. 4 Earnings-call transcript, Jan 2026
  5. 5 Earnings-call transcript, May 2026
  6. 6 Announcement under Regulation 30 (LODR)-Restructuring
  7. 7 BSE/NSE EOD prices & index levels