The well-known foodtech company Eternal (previously Zomato) is establishing Blinkit Foods Limited as a new wholly owned subsidiary. “Blinkit Foods will be involved in the business food services, including innovation, preparation, sourcing, sale, and customer delivery of food,” the company stated in an exchange filing. The proposed authorised share capital of INR 1 Cr will be held by the subsidiary.
What is Blinkit Foods?
Although the business did not specify which market Blinkit Foods will serve, it is most likely going to serve Blinkit’s 10-minute meal delivery service Bistro. Eternal stated in its Q1 FY26 shareholder letter that it has been investing in the growth of Bistro, whose culinary infrastructure is owned and run by Blinkit. According to the firm, there are already 38 of these kitchens operating in Bengaluru and Delhi NCR.
Eternal’s Q1 FY26 Performance Snapshot
According to Eternal, it spent INR 60 Cr on capital expenditures in Q1, mostly for IT hardware and other needs, as well as investments in café kitchens. Overall, Eternal’s consolidated net profit fell 90% from INR 253 Cr in the previous quarter to INR 25 Cr in Q1 FY26. But compared to the same period the previous year, the top line increased by more than 70% to INR 7,167 Cr from INR 4,206 Cr.
Early data, according to Eternal CEO Deepinder Goyal, is positive because the kitchens are creating more demand without consuming Zomato’s revenue. Even though customer-side traction is rather high, the company still needs to put in effort and figure out how to turn a profit in this industry. As a result, Eternal will keep making strategic investments to create a profitable and scalable company.
Blinkit’s Financial & Infrastructure Growth
Operating revenue for the June quarter was INR 2,409 Cr, up over 40% from INR 1,714 Cr in the previous March quarter, according to Blinkit. Revenue increased by more than 155% year over year from INR 943 Cr. In the quarter under review, the fast commerce arm’s adjusted EBITDA loss was INR 162 Cr, compared to INR 178 Cr in the March quarter and INR 3 Cr in the quarter prior.
As Blinkit’s expansion drive proceeded, the adjusted EBITDA loss increased sequentially. During the quarter, it opened 242 new dark locations, bringing the total number of stores to 1,544. In Q1, Eternal invested INR 370 Cr in capital expenditures, of which about INR 310 Cr went towards growing its network of warehouses and quick commerce stores.
Albinder Dhindsa, CEO of Blinkit, stated that the company currently operates more than 5.6 million square feet of warehouse space nationwide, having added an additional 0.4 million square feet. Blinkit currently oversees over 10.4 million square feet of supply chain infrastructure, including the shop area. By December 2025, the company is expected to reach 2,000 outlets, he noted.
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