In a defining moment for India’s consumer tech landscape, Blinkit has overtaken Zomato’s food delivery business in net order value (NOV) for the first time in Q1 FY26. This milestone marks a strategic pivot for Eternal Ltd., the parent company of both platforms, and underscores the rapid evolution of quick commerce as a dominant force in urban consumption.
📊 Q1 FY26 Performance Overview
Eternal reported a 70% year-on-year surge in consolidated revenue, reaching ₹7,167 crore. However, net profit plummeted 90% to ₹25 crore, largely due to aggressive investments in Blinkit and other emerging verticals. Despite the profit dip, Blinkit emerged as the fastest-growing consumer-facing business in Eternal’s portfolio.
| Segment | Revenue (₹ crore) | Net Order Value (₹ crore) | YoY Growth (%) |
|---|---|---|---|
| Blinkit | 2,400 | 9,230 | 127 |
| Zomato (Food Delivery) | 2,261 | 8,967 | 13 |
| Hyperpure (B2B) | 2,295 | — | 89 |
| District (Ticketing) | 207 | — | 118 |
Blinkit’s gross order value (GOV) surged to ₹11,821 crore, surpassing Zomato’s ₹10,769 crore. This marks the first time Blinkit has outpaced Zomato in both gross and net order metrics, validating Eternal’s long-term bet on quick commerce.
🚀 Blinkit’s Growth Trajectory
Blinkit’s rise is powered by a combination of operational scale and strategic innovation:
- Dark Store Expansion: 243 new stores added in Q1, bringing the total to 1,544.
- Monthly Transacting Users: Jumped to 16.9 million, closing in on Zomato’s 23 million.
- Average Order Value: Held steady at ₹669, indicating consistent consumer spend.
- Inventory-Led Model: Transitioning from marketplace to owned inventory, effective September 1, to improve margins and product control.
This shift to an inventory-led structure is expected to enhance Blinkit’s margin profile by at least 1 percentage point over time. Already, 3% of Q1 NOV came from Blinkit-owned inventory.
🍴 Zomato’s Steady Anchor
While Blinkit races ahead, Zomato’s food delivery business remains a profitable anchor:
- Adjusted EBITDA Margin: Improved to 5% of NOV, up from 3.9% last year.
- Restaurant Partners: Averaged 2.38 lakh monthly transacting outlets.
- User Engagement: Monthly transacting users rose to 22.9 million.
However, growth has plateaued, with NOV rising just 13% year-on-year. The segment’s profitability is being challenged by investments in Blinkit’s 10-minute kitchen initiative, Bistro, which operates under Zomato’s reporting structure.
🔍 Blinkit vs Zomato: Key Metrics Comparison
| Metric | Blinkit | Zomato |
|---|---|---|
| Gross Order Value (GOV) | ₹11,821 crore | ₹10,769 crore |
| Net Order Value (NOV) | ₹9,230 crore | ₹8,967 crore |
| Revenue | ₹2,400 crore | ₹2,261 crore |
| Monthly Transacting Users | 16.9 million | 22.9 million |
| EBITDA Margin | -1.8% | 5% |
| Dark Stores / Kitchens | 1,544 stores | 38 kitchens |
🧭 Eternal’s Strategic Outlook
Eternal’s leadership has long anticipated Blinkit’s ascendancy. CEO Deepinder Goyal predicted in 2023 that Blinkit would eventually outpace Zomato in value creation. That vision is now materializing.
The company’s B2C verticals now generate nearly $10 billion in annualized NOV, with Blinkit contributing almost half. Eternal plans to scale Blinkit to 2,000 stores by December 2025 and deepen its presence in tier-2 and tier-3 cities, despite current margin pressures in those regions.
📉 Profitability Challenges
Despite Blinkit’s growth, Eternal’s overall profitability has taken a hit:
- Total Expenses: Rose 79% to ₹7,433 crore.
- Adjusted EBITDA: Fell 42% year-on-year to ₹172 crore.
- Quick Commerce Losses: EBITDA margin at -1.8%, with ₹162 crore loss in Q1.
The company remains committed to investing in Blinkit, Hyperpure, and emerging verticals like District, even as it maintains Zomato’s profitability.
🛍️ Consumer Behavior and Market Dynamics
Blinkit’s rise reflects a broader consumer shift toward ultra-fast delivery of essentials. The platform’s promise of sub-15-minute delivery has resonated strongly, especially in urban centers like Delhi, which saw 70% year-on-year growth despite already being well-covered.
Interestingly, Blinkit and Zomato serve distinct use cases. The overlap in customer cohorts remains low, suggesting that quick commerce and food delivery are complementary rather than competitive.
🏗️ Operational Complexity
Blinkit’s next phase involves:
- Scaling Inventory-Led Operations: To improve margins and product control.
- Expanding Assortment: Leveraging owned inventory to diversify offerings.
- Enhancing User Experience: Speed, assortment, and customer support remain top priorities.
CEO Albinder Dhindsa emphasized Blinkit’s dual challenge: building a just-in-time retail supply chain while operating a logistics platform akin to food delivery. This complexity, he argues, makes quick commerce “multiple times harder” than traditional models.
⚖️ Industry Implications
Blinkit’s rise could reshape India’s quick commerce landscape. With Swiggy trailing in user base and traditional retailers facing margin pressure, Blinkit’s model offers a blueprint for scalable, tech-driven retail.
However, regulatory scrutiny looms. The Competition Commission of India is investigating Blinkit for alleged predatory pricing, and industry bodies are preparing legal action over Zomato’s private-label food brands.
📌 Conclusion
Blinkit’s overtaking of Zomato in order value is more than a quarterly milestone—it’s a signal of shifting consumer priorities and Eternal’s evolving business strategy. As Blinkit continues to scale, the challenge will be balancing growth with profitability, navigating regulatory hurdles, and sustaining customer trust.
Disclaimer: This article is based on publicly available financial and operational data for Eternal Ltd. and its subsidiaries. It is intended for informational purposes only and does not constitute investment advice or endorsement of any company or product.
