Eternal, the parent company of Blinkit, aims to reach a consolidated adjusted EBITDA of roughly ₹9,600 crore by FY29. This ambitious target relies on the quick commerce division matching the profitability levels of its established food delivery business. Investors are tracking whether the company can successfully scale Blinkit’s margins from current levels of 0.3% toward its long-term goals.
Eternal is shifting its focus toward the quick commerce sector to drive its next phase of financial performance. After the food delivery business turned profitable in FY24, the company is now channeling its strategy into Blinkit, aiming for a significant contribution to its consolidated earnings over the next three years. The management has set a firm goal of reaching a consolidated adjusted EBITDA of $1 billion, or approximately ₹9,600 crore, by the end of FY29.
Scaling Blinkit’s Profitability
Blinkit reached a break-even point in the third quarter of FY26 and has since seen minor improvements in its margins. However, there is a substantial gap between its current adjusted EBITDA of 0.3% of net order value and the company’s long-term internal target of 5-6%. Projections suggest a slight uptick to 0.6-0.7% by the first quarter of FY27, but achieving the FY29 earnings goal will require consistent margin expansion alongside rapid revenue growth.
Historically, the quick commerce segment has doubled its business size every year between FY23 and FY26. Management is now targeting a 60% compound annual growth rate through FY29, which would result in a fourfold increase in the division’s scale. If the company achieves a 2% profit margin on its projected FY29 revenue, the quick commerce unit could potentially generate earnings equal to or greater than what the food delivery business delivered in FY26.
Financial Context and Execution Risks
For perspective, Eternal reported an adjusted EBITDA of ₹1,189 crore for FY26. The move to a ₹9,600 crore target represents a major jump, necessitating that Blinkit transition from a growth-focused startup model to a profit-generating entity. Success in this strategy depends heavily on the company's ability to maintain high growth while controlling operational costs.
Investors should keep in mind that the quick commerce sector is highly competitive. Any aggressive price-cutting or increased spending on expansion could place pressure on profit margins in the short term. Furthermore, while the company maintains a strong growth outlook, the actual earnings will be sensitive to changes in consumer demand and potential shifts in the competitive landscape of Indian quick commerce.
Moving forward, the primary monitorable for shareholders will be the progress reports in quarterly filings. Investors may track whether the company can demonstrate a steady rise in adjusted EBITDA percentages in the upcoming June quarter results and beyond, as this will validate the path toward the FY29 profitability targets.