Eternal Q1 Results Preview: All eyes on Blinkit to drive earnings. Here's what investors can expect

Eternal is expected to report a steady June-quarter performance, with strong growth in Blinkit likely to remain the main driver even as the food delivery business continues to expand at a slower but profitable pace.

Brokerages expect the company to benefit from higher order value in both food delivery and quick commerce. Blinkit is likely to see faster growth, helped by store additions, seasonal demand, IPL-related consumption and inflation-led basket expansion.

Motilal Oswal expects net order value for the food delivery business to grow 19.7% year-on-year, while quick commerce net order value is expected to rise 84.4%. It expects food delivery take rates at 21.5% and Blinkit gross profit at 26.9%.


Blinkit’s net order value is expected to grow 17.9% quarter-on-quarter and 84.4% year-on-year, according to Motilal Oswal. The brokerage expects food delivery adjusted EBITDA margin as a percentage of net order value to rise 60 basis points sequentially to 6.1%.

For Blinkit, Motilal Oswal expects a contribution margin of 5.2% and adjusted EBITDA margin of 0.6% as a percentage of net order value in the first quarter.

Investors will watch Eternal’s commentary on competition intensity in quick commerce, Blinkit’s growth outlook, food delivery gross order value growth and margin trajectory.

Blinkit growth to remain key

Kotak Equities expects Eternal’s food delivery net order value to grow 18% year-on-year. It expects Blinkit net order value to grow 88% year-on-year and 20% quarter-on-quarter.

The brokerage said Blinkit’s growth will be driven by rapid store additions. It models the period-end store count at 2,468, implying 225 new dark store additions during Q1FY27. It also expects the business to gain from favourable seasonality, IPL demand and inflation.

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Blinkit has become the most closely watched part of Eternal’s business. The quick commerce segment is growing at a much faster pace than food delivery, but it also operates in a highly competitive market. Rivals are spending aggressively on discounts, delivery speed, store expansion and product selection.

For Eternal, the challenge is to keep Blinkit’s growth strong without hurting profitability. Kotak expects Blinkit to report a contribution margin of 5.5% of net order value and EBITDA margin of 0.6%. This translates to segment adjusted EBITDA of about Rs 100 crore.

Food delivery margins in focus

The food delivery business remains Eternal’s profit anchor. The segment is expected to grow in double digits, but at a more mature pace than quick commerce.

Kotak expects 30 basis points sequential contraction in contribution margin and EBITDA margin for food delivery to 9.9% and 5.2%, respectively, as a percentage of net order value. The brokerage said the margin pressure is likely to come from higher delivery costs during the quarter.

Motilal Oswal, however, expects food delivery adjusted EBITDA margin to improve sequentially to 6.1%. The difference in estimates shows that investors will closely track delivery costs, take rates and the company’s ability to manage discounts.

Food delivery growth will also be watched for signs of demand health in urban consumption. Order frequency, average order value and restaurant partner additions will be key numbers.

JM Financial stays positive on long-term outlook

JM Financial said Eternal is a clear market leader across its operating businesses in net order value and revenue terms. It also said the company is ahead of competition on profitability across business segments.

The brokerage said Eternal is the only major hyperlocal delivery company in India that is generating free cash flow at the consolidated level without compromising on top-line growth.

JM Financial also said Blinkit’s business model change, helped by foreign ownership cap approval, should strengthen its position in the fast-growing quick commerce market and support operating margin expansion.

It added that Eternal’s strong balance sheet and industry tailwinds in hyperlocal delivery provide comfort on long-term growth.

What the Street will watch

The June-quarter result will be judged less on headline revenue and more on segment performance. Blinkit’s store expansion, net order value growth and profitability will be the biggest monitorables. Food delivery margins will also matter because they show how much cash the core business can generate while quick commerce scales up.

Kotak expects Eternal to post adjusted EBITDA of Rs 550 crore, post-rent and pre-ESOP, higher year-on-year.

The market will also look for management commentary on competition in quick commerce. The sector remains one of the fastest-growing consumer internet categories in India, but growth is coming with heavy investments by multiple players.