Eternal Surges 194% in Q3 Preview as Blinkit Expansion Fuels Growth

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AuthorAarav Shah|Published at:
Eternal Surges 194% in Q3 Preview as Blinkit Expansion Fuels Growth
Overview

Food delivery major Eternal, commonly known as Zomato, is poised for a significant Q3FY26 earnings report on January 21, 2026. Analysts project a revenue surge of 194% year-on-year to ₹15,885 crore. Net profit is expected to climb 18% annually to ₹69.4 crore. Investors will closely track Blinkit's rapid store expansion and the company's guidance on competitive pressures and margins.

Q3 Profit & Revenue Projections

Brokerage firms forecast Eternal to post a net profit of approximately ₹69.4 crore for the December quarter, an 18% increase from the previous year. Revenue is anticipated to see a dramatic 194% year-on-year jump, reaching ₹15,884.85 crore. This sequential growth indicates a strong performance from the previous quarter, with revenue expected to rise 17% to ₹13,590 crore.

Blinkit's Rapid Expansion and GST Impact

The quick-commerce arm, Blinkit, is a key growth driver. Kotak Institutional Equities predicts a 123% year-on-year growth in Blinkit's net merchandise value (NMV), driven by aggressive store additions. The target is 2,100 stores by quarter-end, adding 284 new dark stores. However, analysts note that GST rate revisions implemented in September 2025 might impact NMV growth by 3-4%.

Margin Outlook and EBITDA Estimates

While revenue and profit show strong growth, margins remain a focus. Contribution margins for food delivery are expected to expand slightly by 10 basis points quarter-on-quarter. Adjusted EBITDA for the food delivery business is projected at 8.7%, but Blinkit's operational losses are anticipated to weigh on consolidated EBITDA. Overall consolidated EBITDA is pegged around ₹292.3 crore, significantly up from ₹162 crore last year, buoyed by higher food delivery EBITDA, though Blinkit and District losses remain a factor.

Analysts from Motilal Oswal Financial Services anticipate food delivery net order value (NOV) growth of 12% year-on-year, with take rates around 21.5%. Blinkit's NOV is also expected to grow substantially by 122% year-on-year. JM Financial notes sequential improvement in adjusted EBITDA margins for both food delivery and quick commerce, with absolute losses in Blinkit potentially declining quarter-on-quarter. Nuvama expects Blinkit's absolute adjusted EBITDA loss to be around ₹1,300 crore.

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