Key Highlights :

• Quick commerce Net Order Value (NOV) hits ₹9,203 crore, overtaking food delivery for the first time

• Q-comm revenue grows 155% YoY, reaching ₹24 billion in Q1 FY26

• Blinkit expansion drives growth, with smaller cities contributing despite lower Average Order Values

• Eternal announces new in-house food delivery brand, directly challenging Zepto Café

• Company focuses on Net Order Value (NOV) as key disclosure metric going forward

Quick Commerce Emerges as Core Business

Eternal’s Q1 FY26 results reflect a major inflection point in the company’s journey. For the first time ever, its quick commerce business has overtaken food delivery in Net Order Value (NOV)—a clear signal that ultrafast delivery is no longer a side hustle, but now the central pillar of the company’s growth strategy.

Quick commerce posted ₹9,203 crore in NOV, a 127% year-on-year rise, compared to ₹8,976 crore from the food delivery business, which grew at a modest 13% YoY. In revenue terms, Q-comm clocked ₹24 billion, more than doubling from ₹9.4 billion in Q1 last year. The strong traction points to a structural consumer shift in favor of daily essentials and convenience-driven purchases.

Blinkit Fuels the Q-Comm Boom

At the heart of Eternal’s quick commerce engine is Blinkit, which continues to expand its reach across Indian metros and Tier 2/3 towns. Interestingly, even with 10% lower Average Order Value (AOV) in smaller cities, store-level profitability has improved, driven by operational efficiency and scale.

Some key Blinkit milestones this quarter:

• Delhi NCR witnessed 70%+ YoY growth in Blinkit NOV

• New dark store cohorts are hitting breakeven within just one month of launch

• Company aims to scale to 2,000 stores by Dec 2025, with a long-term target of 3,000

• Blinkit’s just-in-time supply chain and hyperlocal logistics model remains a competitive edge

With higher throughput per store, improving margins, and better delivery timelines, Blinkit is now the poster child of Eternal’s transformation into a consumer logistics powerhouse.

Food Delivery Growth Slows, but Stays Resilient

Eternal’s traditional food delivery business remains robust, albeit with slower growth compared to quick commerce. The segment recorded ₹22.61 billion in revenue, up from ₹19.42 billion YoY, while NOV stood at ₹8,976 crore, growing 13% YoY.

Despite growth tapering, Eternal’s food delivery platform continues to benefit from:

• Loyal user base in metros

• Improved restaurant partnerships and logistics

• Stable repeat-order dynamics

However, with the rise of quick commerce, food delivery is no longer the company’s primary revenue growth engine. Instead, its value lies in brand equity, premium loyalty, and consistent high-frequency use.

Going Out Vertical Recovers Strongly

Another bright spot in Eternal’s Q1 is the “Going Out” segment, which includes dine-in bookings, nightlife, and events. The NOV for this vertical rose 95% YoY and 8% QoQ to ₹2,013 crore, reflecting a growing appetite for offline experiences post-COVID.

The recovery in this space suggests that urban consumers are rebalancing between digital convenience and physical experiences, and Eternal is positioned to monetize both.

Strategic Leap : Eternal’s D2C Food Play to Rival Zepto Café

In a significant strategic move, Eternal has launched its own in-house food preparation and delivery service, aiming to vertically integrate its food operations. The model is inspired by Zepto Café, and enables Eternal to:

• Own the entire value chain from kitchen to doorstep

• Earn higher margins by bypassing third-party restaurants

• Control quality, branding, and customer experience

• Build proprietary D2C food brands that can scale independently

This bold entry into direct-to-consumer (D2C) food not only diversifies Eternal’s revenue stream but also reduces platform dependency on external vendors, giving the company better pricing power and operational control.

Shareholder Message : Clarity, Confidence, and Margin Focus

Eternal’s shareholder letter emphasized three key themes:

1. Quick commerce is now the leading business and will be reported via NOV for clarity

2. Margins have bottomed out, and absolute losses are expected to shrink as store maturity improves

3. No major competitive innovation has been observed in the Q-comm space; Eternal believes it is ahead of the curve

By focusing on Net Order Value (NOV) rather than Gross Merchandise Value (GMV), the company is aiming to present a clearer picture of real growth, especially in a market where discounts and cashbacks often cloud headline metrics.

Final Word: Eternal's Reinvention Is Underway

Eternal’s Q1 FY26 performance marks a watershed moment for the company. With quick commerce now outpacing food delivery, Blinkit’s expansion accelerating, and a new D2C food brand in the works, Eternal is building a multi-engine growth model that goes beyond just restaurant orders.

The ultrafast delivery segment is still in its early innings in India. Eternal’s focus on store-level profitability, vertical integration, and regional expansion places it in a strong position to lead this transformation.

If current momentum holds, Eternal could redefine the competitive dynamics of India’s consumer internet space emerging not just as a delivery platform, but as a diversified ecosystem powering food, essentials, and offline experiences at scale.