Eternal Launches New Subsidiary 'Blinkit Foods' to Power Quick Commerce Food Delivery

In a strategic move to bolster its rapid food delivery offerings, Eternal—the parent company formerly known as Zomato—has officially announced the formation of a wholly owned subsidiary named Blinkit Foods Limited.

According to an official filing, the new entity will be responsible for end-to-end food services, including innovation, sourcing, preparation, and delivery. Although Eternal has not explicitly stated which segment Blinkit Foods will target, industry signals suggest it will cater directly to Blinkit’s expanding 10-minute food delivery vertical under the Bistro brand.

Fueling the Bistro Engine

Eternal has already made significant strides with its Bistro initiative, which runs a network of company-owned cloud kitchens aimed at delivering freshly prepared food within minutes. The Q1 FY26 shareholder letter reveals that the company currently operates 38 Bistro kitchens across Delhi NCR and Bengaluru.

"Early data shows promising demand without overlapping with Zomato's core business," CEO Deepinder Goyal stated. "Customer interest is strong, but profitability remains a challenge. We will continue investing thoughtfully to build a scalable and sustainable model."

The new Blinkit Foods subsidiary is expected to streamline operations and possibly house the future innovation pipeline for Bistro’s food services.

Financial Performance: Growth Amidst Profit Dip

Despite operational progress, Eternal reported a sharp decline in consolidated net profit, dropping 90% to INR 25 Cr in Q1 FY26, compared to INR 253 Cr in the same quarter last year. However, its revenue surged over 70%, reaching INR 7,167 Cr, a strong signal of top-line expansion.

Much of this growth was driven by Blinkit, Eternal’s quick commerce arm.

Blinkit: Revenue Jumps, Losses Narrow

Blinkit posted an impressive INR 2,409 Cr in operating revenue during the June quarter, a 40% jump from the previous quarter and a 155% increase YoY. However, the segment continued to operate in the red, with an adjusted EBITDA loss of INR 162 Cr, slightly lower than INR 178 Cr in the March quarter.

The widening loss from the same quarter last year—when it stood at just INR 3 Cr—is attributed to Blinkit’s aggressive expansion drive. The company added 242 new dark stores, taking the total count to 1,544 across India.

Eternal allocated INR 370 Cr towards capital expenditure in Q1 FY26, of which INR 310 Cr went into expanding Blinkit’s quick commerce infrastructure, including new warehouses and dark stores.

Building the Future of Instant Food Delivery

Blinkit’s warehousing footprint also saw significant growth. CEO Albinder Dhindsa shared that the company added 0.4 million sq ft of warehousing space this quarter, taking the total managed supply chain area to 10.4 million sq ft, including store spaces.

“We’re scaling fast and remain on course to cross 2,000 stores by December 2025,” Dhindsa said.

The launch of Blinkit Foods is viewed as a natural extension of this growth strategy, potentially giving Eternal a tighter grip over its food innovation and delivery infrastructure as competition heats up in India’s quick commerce sector.