Eternal reported 1.25 billion rupees in profit for the quarter through September, versus an average analyst estimate of about 2.8 billion rupees. Revenue jumped 78% to 241.4 billion rupees, bolstered by strength in its primary food-delivery business.
The stock fell 2.6% in Mumbai. Over the past 12 months, shares are down about 8%, though they remain roughly four times higher than at the 2021 initial public offer.
Management said Blinkit is scaling quickly nationwide in India, which has more than 1.4 billion people, using promotions to attract users and remain in front of deep-pocketed global competitors such as Amazon and Walmart. The buildout of storage capacity and staffing is squeezing margins, and aggressive competition is adding pricing pressure.
Quick commerce revenue nearly doubled in the quarter. Blinkit is broadening its presence throughout India's urban areas and smaller municipalities, competing with both international and domestic players such as Swiggy Ltd.'s Instamart and Zepto.
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Profit missed as growth spending stayed high while competition put pressure on pricing. The tradeoff: rapid expansion and a near doubling in quick-commerce revenue alongside thinner margins and a share price that slipped on the day. Watch how fast those new storage sites and hires translate into margin improvement, and whether the entertainment unit drives operational lift.
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