Eternal’s shares surged 7.5% to Rs 276.50 on the NSE following the company’s Q1 FY26 results, hitting a five-month high. Despite reporting a 90% year-on-year decline in net profit to Rs 25 crore, revenue from operations rose sharply by 70% to Rs 7,167 crore. Positive management commentary helped boost investor confidence.

Blinkit Overtakes Zomato in NOV as Quick Commerce Drives Eternal’s Growth

A major highlight was Blinkit surpassing Zomato in Net Order Value (NOV) for the first time. Eternal CFO Akshant Goyal revealed that their B2C businesses are now nearing $10 billion in annual NOV, with quick commerce—led by Blinkit—contributing nearly half. Blinkit added 243 stores in the quarter, reaching 1,544 total stores, and plans to expand to 2,000 by December 2025. Additionally, it expanded its warehousing capacity by 0.4 million sq ft, totalling over 5.6 million sq ft across India.

Blinkit’s revenue saw a remarkable 154% YoY growth, rising to Rs 2,400 crore, while Zomato’s food delivery revenue increased 16% to Rs 2,261 crore. Zomato’s adjusted EBITDA margin improved to 5% in Q1 FY26, compared to 3.9% a year ago, though food delivery margins declined sequentially. CEO Deepinder Goyal indicated that while 20%+ NOV growth may not be achieved in FY26, a figure north of 15% is expected, trending toward 20% by FY27.

Eternal Bets on Innovation and ‘District’ as Key Growth Drivers Amid Rising Competition

On new market entrants, Goyal acknowledged disruption as inevitable but believes competition strengthens the business, provided Eternal continues to innovate. No significant external threat was currently identified. The company also announced the incorporation of Blinkit Foods, a wholly-owned subsidiary focused on food services, with a share capital of Rs 10 lakh.

Meanwhile, Zomato’s ‘Going-out’ business, District, has emerged as a high-revenue generator, with an average revenue per order exceeding Rs 160—higher than Zomato and Blinkit. With a Rs 8,000-crore annualized NOV and potential to scale to $3 billion in topline, District is becoming a significant growth engine.

Summary:

Eternal’s shares rose 7.5% after strong Q1 FY26 revenue growth, driven by Blinkit overtaking Zomato in Net Order Value. Blinkit’s revenue surged 154% YoY. The company is expanding operations and launched Blinkit Foods. Zomato’s ‘District’ segment also showed strong performance, positioning itself as a key future growth driver.