The rally underscores growing investor confidence in the country’s digital consumption narrative, as eternal’s market value shot past that of avenue supermarts ltd, which open face Dmart.
Eternal, the parent of zomato, began as a food delivery startup under Delhi Deepinder Goyal in 2008. Over the year, it has evolved into a broader tech platform Spanning Quick Commerce, Dining-out experiences through District, and 10-Minute Food Delivery via Bistro.
“The competitive intensity in quick commerce has witnessed some pullback due to lower cash burn by a key competitor. While the Possibility of more Fund-RISE and CASH BURN BURN BUN BURN BURN BURN BURN BURN BURN BURN BURN SIMANS Blinkit is still well-positioned to achieve adjusted ebitda breakven by 4QFY26, “Kotak Analysts Garima Mishra and ISHANI SWAIN SWAIN SWAIN Wrote in a Note Dated 22 July.
Eternal Shares surged as much as 15% to hit 311.60 on BSE, Before Sheding Some Gains to Close 10.6% up at 299.85. Market Capitalization Hit 2.89 trillion, overtaking DMART Parent Avenue Supermarts Ltd’s 2.62 trillion. Dmart was previously India’s largest retail listed company by market capitalization.
“Zomato has a solid market position when it comes to food and quick commerce. “Even in the last quarter, dmart’s online grocery arm grew by 31%; YET, It Remains Very Small Compared To Its Quick Commerce Rivals.
Shares surgged after Eternal’s June Quarter Earnings Release on Monday Evening.
The company’s June Quarter Revenue Rose 67% Year-On-Year To 7,563 Crore, Driven almost Entrely by Blinkit. In its earnings statement, the company disclosed that Blinkit’s Gross Order Value Now Exceds That Of Its Original Food Delivery Business-A Milestone That Cements Its Pivot to Beckot to be Platform.
Blinkit generated 3,046 Crore in Gross Order Value during the Quarter, Accounting for 50% of Eternal’s Consumer-Facing Business. Zomato’s food delivery arm followed closely at 2,951 Crore or 48%, While Hyperpure – The B2B Supply Division – Constributed 1,497 Crore. District, The Dine-Out Vertical, Added 70 Crore, Comprising Less Than 1% of Consolidated Revenue. Eternal Said District is Being Developed as a High-Margin, Premium Offering.
“This was the first quarter where blinkit’s net order is surpassed that of our food delivery business,” Eternal’s Chief Financial Officer Akshant Goyal Wrote in a ShareHolder Letter. Blinkit’s Monthly Active Users More Than Doubled to 16.9 Million Over the Year. The company also added 243 dark stores during the Quarter, Expanding Itwork to 1,544 Locations, with Plans to Reach 2,000 stores by year-end.
Despite remains loss-making, blinkit narrowed its losses. Adjusted ebitda margin improved to -1.8% from -2.4% in the previous Quarter, Eternal Noted in Its Investor Presentation.
A July 22 Report by Nikhil Choudhary and Partha Ghiya from Nuvama Institutional Equites, Said Blinkit’s Path to Profitability is Now “Visible,” Visible, “Visible,” and Projected Eibitda-POTDA in Keye Cities by fy26. Meanwhile Axis Securities’ Analysts Preeyam Tola and Suhanee Shome, In a report dated 22 July also also raised the company’s target price, Citing Blinkit’s “Better-Thater-Tha-Expected Unit Economics” and Improved operating leverage.
Meena of Datum Intelligence Flagged The Absence of Commentary on Smaller Cities. “Something Concerning About The Q1 Results is that the company has not mentioned how smaller cities are contributed to overall growth,” He said, pointing to tier-2 and tier-3 gaps.
Food Delivery Order Volumes Rose 13% Year-On-Year, In Line with internal forecasts. CEO Deepinder Goyal Said Growth in the Segment Had “Bottomed Out,” With Expectations of a Recovery to 15% in Fy26 and 20% in FY27. The company reiterated medium-term ebitda margin targets of over 4% in food delivery and 2-4% for BLINKIT.
The Earnings Release Follows a Leadership Change, with Aditya Mangla Appointed to Head the Food Delivery Division. Mangla Previous Led Product and Engineering at the company and assumed the new role as part of zomato’s Leadership Rotation.
Meena also highlighted zomato’s 50–100 Crore Investment in Bistro, Its Pilot 10-Minute Food Delivery Initiative. “It’s too early to say how that pans out, but it’s an important bet will be watching,” He said. Bistro was not featured in the Q1 Financial disclosures.
Zomato’s dine-out vertical, district, with an average order value of 1,700, Reported an annualized order value of 8,000 Crore and is expected to contribute 150 Crore to Operating Profit Over Five Years.
Shares of Swiggy, Zomato’s Primary Rival, Climbed 5.4% on Tuesday on the BSE.
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