Eternal Q1 FY27: profit jumps 3.7X to ₹92 Cr on Blinkit surge

Key Takeaways

• Eternal's net profit rose 3.7X YoY to ₹92 Cr in Q1 FY27, with operating revenue up 182% to ₹20,211 Cr
• Blinkit now commands 77% of Eternal's revenue, with 200 new dark stores added in Q1 alone
• Zetwerk faces a $1 Bn countersuit from Ayr Energy for alleged trade secret theft, weeks after SEBI IPO approval

Eternal, the parent company of Zomato and Blinkit, reported a net profit of ₹92 Cr in Q1 FY27, a 3.7X jump from the same quarter last year. Operating revenue climbed 182% YoY to ₹20,211 Cr, driven almost entirely by Blinkit's rapid expansion. Total expenses rose 173% to ₹20,314 Cr, but the foodtech conglomerate maintained profitability for yet another quarter.

Blinkit drives 77% of Eternal's revenue

Quick commerce remains Eternal's cash cow. Blinkit contributed over 77% of the company's total operating revenue in Q1, up from previous quarters. The vertical added 200 new dark stores during the period, bringing the total to 2,443 locations. Net order value continued to climb, supported by stronger user retention in metro markets.

The numbers show improving unit economics. Blinkit posted an adjusted EBITDA of ₹102 Cr for the quarter. CEO Albinder Dhindsa told investors that the worst of the quick commerce discounting wars is behind them. The company plans to build its competitive moat through dark store density, supply chain efficiency, and gourmet product offerings.

Zomato remains the profit engine

While Blinkit drives top-line growth, Zomato's food delivery business remains the profit anchor. The segment generated ₹3,100 Cr in operating revenue and ₹606 Cr in adjusted EBITDA during Q1. Higher order frequencies and network density improvements helped Zomato expand margins, even as competitors tested low-commission models to lure restaurants.

The going-out platform District, however, continues to burn cash. Despite scaling to 45,000 restaurants and 5,000 movie screens, losses widened in Q1. Eternal appears content to remain in build-out mode here, prioritizing market share over near-term profitability.

Eternal carves out AI subsidiary Nugget

Alongside its Q1 results, Eternal announced a structural change. The company is spinning off its AI-native platform Nugget into a dedicated subsidiary. This move signals increased investment in AI capabilities, though the vertical remains in investment mode with no disclosed revenue contribution.

Eternal is also ring-fencing its community initiatives. The Blinkit Ambulance Service and Feeding India will now operate under a separate not-for-profit arm. This restructuring separates social impact activities from core commercial operations.

Zetwerk faces $1 Bn lawsuit ahead of IPO

In a separate development, IPO-bound contract manufacturer Zetwerk is now facing serious legal heat. US-based transformer manufacturer Ayr Energy has filed a countersuit accusing Zetwerk of trade secret theft, trademark infringement, and false advertising. Ayr is seeking at least $1 Bn in damages and a ban on importing allegedly infringing transformers into the US market.

This comes months after Zetwerk accused Ayr Energy and its founder of using stolen confidential information. The timing is particularly awkward for Zetwerk, which received SEBI approval for its IPO and confidentially filed its DRHP in March. The planned offering comprises a fresh issue of $300 Mn and an offer for sale of up to $150 Mn.

InCred Finance posts FY26 profit of ₹438 Cr

InCred Holdings' lending arm reported a 17.1% YoY jump in consolidated net profit to ₹438 Cr for FY26. Total income rose 36% to ₹2,567 Cr. Assets under management stood at ₹15,881 Cr as of March 2026, reflecting strong lending business expansion.

The numbers weren't uniformly positive. Return on managed assets declined to 2.7% from 3% a year earlier, attributed to higher credit costs. Sister company InCred Holdings is eyeing its own D-Street debut, having received SEBI approval for an IPO comprising a fresh issue of up to ₹1,250 Cr and an OFS of up to 9.9 Cr shares.

India Semiconductor Mission 2.0 raises founder questions

The Union Cabinet approved India Semiconductor Mission 2.0 earlier this month with a proposed outlay of ₹1.25 Lakh Cr. The second phase shifts focus toward electronics systems and chip design rather than just manufacturing. A new grant-plus-equity model allows the state to co-invest alongside private capital without seeking board seats.

The policy aims to close the IP financing gap that has hindered India's fabless chip ambitions. But founders and investors still have unresolved questions. How will milestones link to capital disbursement? What happens with bridge funding between VC rounds? Rules governing government shareholding, veto rights, and cross-border deals remain unclear.

Frequently Asked Questions

How much profit did Eternal report in Q1 FY27?

Eternal reported a net profit of ₹92 Cr in Q1 FY27, a 3.7X increase from the same period last year.

What percentage of Eternal's revenue comes from Blinkit?

Blinkit contributed over 77% of Eternal's total operating revenue in Q1 FY27, making it the dominant business segment.

Why is Zetwerk being sued by Ayr Energy?

Ayr Energy has accused Zetwerk of trade secret theft, trademark infringement, and false advertising, seeking at least $1 Bn in damages and a US import ban on allegedly infringing transformers.

What is India Semiconductor Mission 2.0?

It is a ₹1.25 Lakh Cr government initiative focusing on electronics systems and chip design, using a grant-plus-equity model to co-invest with private capital.

What was InCred Finance's profit in FY26?

InCred Finance reported a consolidated net profit of ₹438 Cr in FY26, a 17.1% increase from the previous year.

Source: Inc42 Media / Team Inc42