Eternal Invests Rs 370 Cr in Q1 FY26; Blinkit's Loss Widens Amid Rapid Expansion
Eternal has invested Rs 370 crore in capital expenditure during Q1 FY26, with a significant portion allocated to Bistro kitchens and related infrastructure. The company's quick-commerce platform, Blinkit, has shown remarkable growth, expanding its dark store network and warehousing footprint, despite reporting losses.
Eternal, led by co-founder and CEO Albinder Dhindsa, has been aggressively expanding its ultra-fast grocery delivery near me platform, Blinkit, formerly known as Grofers. In Q1 FY26, Blinkit's revenue surged over 155% year-on-year, although it continues to operate at a loss with an adjusted EBITDA of Rs 162 crore. The platform has expanded its dark store network to 1,544 stores and its warehousing footprint to 5.6 million square feet during the same period.
Eternal's Bistro kitchens, which generate incremental demand without affecting the Zomato business, have received a significant investment of Rs 60 crore. Eternal has adopted an integrated kitchen model for Bistro, moving away from restaurant partnerships to control preparation times. The company aims to reach 2,000 stores by December 2025, with an improved operating leverage of -1.8% adjusted EBITDA margin.
Eternal has created a new subsidiary, Blinkit Foods Private Limited, to strengthen its quick commerce food delivery near me segment. Blinkit Foods will focus on food services, including innovation, sourcing, preparation, sale, and delivery. It is likely to power Bistro, Eternal's 10-minute ready-to-eat meal service, which currently has 38 operational kitchens in Delhi NCR and Bengaluru.
Despite a 70% increase in topline revenue to Rs 7,167 crore, Eternal's consolidated net profit plunged 90% year-on-year to Rs 25 crore in Q1 FY26. The company's aggressive expansion strategy, particularly in the quick-commerce segment, has led to increased capital expenditure and losses. However, Eternal remains optimistic about the growth prospects of Blinkit and its subsidiary, Blinkit Foods.
