Eternal's Blinkit tightens grip on quick commerce leadership; JP Morgan says it can sustain higher growth for longer

Quick commerce platform Blinkit, owned by Eternal (formerly Zomato), is steadily cementing its dominance in India’s fast-growing quick commerce industry, according to a note from JP Morgan. The multinational financial services firm highlighted that Blinkit has been outperforming peers on several metrics.

Blinkit has now emerged as the largest revenue contributor to Eternal, surpassing its legacy businesses.

Eternal acquired Blinkit in 2022, and since then, the quick commerce arm has been steadily climbing up the ranks in the group’s revenue mix. In the first quarter of the current financial year (FY26), Blinkit reported revenue of ₹2,400 crore, more than doubling from ₹942 crore in the same period last year. With this surge, Blinkit overtook Eternal’s B2B supplies business, Hyperpure, which posted revenue of ₹2,295 crore in the quarter, and the delivery business, which reported revenue of ₹2,261 crore.

For financial year 2025, Blinkit clocked ₹5,206 crore in revenue, a massive 126% year-on-year (YoY) jump from ₹2,301 crore in FY24. Eternal’s core food delivery business, once the company’s mainstay, reported ₹8,080 crore in FY25 revenue versus ₹6,361 crore registered in the year-ago period.

Hyperpure contributed ₹6,196 crore, up from ₹3,172 crore. While all segments are growing, Blinkit has clearly emerged as the fastest-expanding vertical within Eternal.

Expansion across stores and cities

Fuelling Blinkit’s growth is its aggressive expansion strategy. During FY25, the platform added 775 net new stores, taking the total count to 1,301 stores across more than 100 cities. This is up from 70+ cities a year ago. The company said the majority of these stores were launched in previously underserved localities and high-demand clusters.

To support this footprint, Blinkit added 1 million sq. ft of new warehousing space in FY25, bringing the total to 5.2 million sq. ft of backend infrastructure. Despite the heavy rollout, the company managed to keep its contribution margin stable at 3.9% of net order value (NOV), slightly improving from 3.8% last year.

Blinkit noted that about 40% of its stores are still underutilised, as they were opened only in the last two quarters (216 in Q3FY25 and 294 in Q4FY25). Analysts see this as a sign of future growth potential as these newer stores ramp up.

Customer growth and shifting mix

The quick commerce firm also posted impressive gains in customer metrics. Average monthly transacting customers rose to 13.7 million in Q4FY25, up sharply from 10.6 million in Q3FY25 and 10.2 million for the full year, doubling year-on-year.

Blinkit’s order volume rose 108% YoY to 424 million in FY25, while NOV jumped 113% to ₹22,371 crore. The net average order value (NAOV) inched up 2% YoY to ₹528.

Another notable trend has been the rising contribution of non-grocery categories on Blinkit’s platform. These categories typically carry higher MRPs, leading to a widening gap between GOV (gross order value, reported on MRP) and actual customer spend. The company adjusts this discrepancy through NOV reporting.

JP Morgan’s take

According to JP Morgan’s latest channel checks, Blinkit is not just outpacing rivals in scale but also widening its leadership position. The financial services firm believes that Blinkit’s rapid growth can be sustained for longer without pushing out the company’s break-even or profitability timelines.

“Blinkit is expanding its leadership over peers in multiple ways. We believe it can sustain higher growth for longer while maintaining stable EBITDA profiles,” JP Morgan said in its note.

The firm added that Eternal is likely to prioritise market share expansion over profit maximisation in the next two years.

As a result, JP Morgan raised its GOV estimates for Blinkit by 6%, 22%, and 35% for FY26, FY27, and FY28, respectively, while keeping EBITDA largely unchanged. This suggests that while near-term profitability may not see a dramatic uplift, long-term scale benefits could be significant.