Eternal’s July-September Profit Plunges 63% as Blinkit Shifts to Inventory Model, Revenue Triples

Eternal Ltd. reported its steepest fall in consolidated net profit for the September quarter after shifting its quick commerce arm Blinkit to an inventory-based model, which pushed up costs and made past results incomparable.

Net profit fell over 63% on year to ₹650 million, while revenue jumped nearly threefold to ₹136 billion, driven by aggressive ordering and higher platform fees. The new model now contributes 73% of consolidated sales, with own inventory costs included in revenue.

The company’s consumer business saw a 57% on-year rise in net order value to ₹231.6 billion, while adjusted revenue grew 172%.

Food delivery accounted for 18% of total sales, with order value up 14% on year and an all-time high adjusted EBITDA margin of 5.3%. Quick commerce, which made up 73% of total sales, posted 137% growth in order value and added 272 stores, taking the total to 1,816.

Costs rose sharply due to the business model change—stock-in-trade purchases jumped sixfold to ₹88 billion, delivery costs climbed 58% to ₹22 billion, and ad spend rose 91% to over ₹8 billion.

Eternal expects slower near-term growth in food delivery but aims to reach 2,100 quick commerce stores by December and 3,000 by March 2027.