Competitive challenges to keep Eternal under pressure

The Q3FY26 results from Eternal contained two major surprises.

- DEVANGSHU DATTA

One is that Blinkit has achieved adjusted break-even at the operating profit level a couple of quarters ahead of schedule. The second is Deepinder Goyal moving up the ladder to vice-chairman with Albinder Dhindsa taking over as CEO. However, in the near-term, Dhindsa will stay focused on Blinkit, while Goyal will continue to be involved in strategy, culture, leadership development, etc. The CEO transition seems to be gradual. The division of responsibility will evolve, but daily execution may continue as normal.

Eternal reported Q3FY26 net revenue of ₹16,300 crore, up 20.7 per cent Q-o-Q and ahead of consensus estimates. Food delivery (FD) net order value (NOV) was ₹9,840 crore. Blinkit NOV was ₹13,300 crore (up 120 per cent Yo-Y). In FD, adjusted operating profit as a per cent of NOV was up 10 basis points Q-o-Q at 5.4 percent. Blinkit reported a contribution margin of 5.5 per cent (4.6 per cent in Q2FY26). Adjusted operating profit margin hit breakeven.