Eternal's Blinkit and Hyperpure turn EBITDA positive in Q3

Consumer tech player Eternal saw its quick commerce business and Hyperpure business turn EBITDA profitable in the December quarter as the company undergoes a fundamental leadership transition.

The parent company behind Zomato and Blinkit saw adjusted revenue growth of 64% to Rs 16,315 crore on an annual basis. On a sequential basis, its revenue grew 20% from Rs 13,590 crore in the September quarter, shared the company in an exchange filing.

On a consolidated level, its business-to-consumer (B2C) business saw its net order value (NOV) surge to Rs 25,732 crore, a 55% jump from last year.

The growth was accompanied by margin expansion, with profit increasing 72% to Rs 102 crore from Rs 59 crore last year. On a sequential basis, there was a slight improvement as it saw its profit grow from Rs 65 crore in the September quarter. Shares of the company were trading 4.9% higher on NSE at Rs 282 apiece after results were posted.

In a separate filing, the company also announced the resignation of Zomato's founder, Deepinder Goyal, as MD & CEO. He is expected to transition to the role of Vice President and Director of the parent company, Eternal. In a letter to shareholders, Goyal also announced the appointment of Albinder Dhindsa as Eternal's new Group CEO.

Blinkit, a leader in the country's quick commerce segment, saw its NOV more than double on a yearly basis. This marks the second quarter since the company shifted to an inventory model from its third-party marketplace structure earlier, allowing it to realise the full monetary price of goods sold instead of the marketplace commission.

Consequently, the segment revenues shot up to Rs 12, 256 crore from Rs 9,981 crore in the corresponding quarter of FY25. On a sequential basis, revenues in the segment grew by 23%, suggesting strong demand led by last-minute festive season purchases.

The quick commerce market leader also executed an industry-first EBITDA positive, with a Rs 4 crore adjusted EBITDA profit. This comes after Blinkit secured about Rs 600 crore from its parent entity in November last year.

Margin improvement came from several factors: supply chain cost efficiencies, a favourable shift towards long tail categories and operating leverage. This is the natural progression of a strong and maturing quick commerce business. What may be surprising is that we achieved it despite elevated competitive intensity over the past few months,” said Albinder Dhindsa, Founder and CEO, Blinkit, in a press note.

The company's cash-positive and relatively mature food delivery business delivered stable growth after a series of slow quarters, likely helped by a surge in discretionary spending during the holiday season. It clocked a growth of about 30% to Rs 2,676 crore, with an absolute adjusted EBITDA of Rs 531 crore.

The company's newer, stepping out business, housed under the District brand, saw revenues grow by 60% to Rs 300 crore while its bottom line remained in the red. The company expects losses to reduce sequentially in the next 4 to 6 quarters.