Eternal share price rises over 5% following THIS update related to Blinkit

Intraday, the stock rose 5.46% to ₹277.75 apiece on the National Stock Exchange (NSE). It settled 2.9% higher at ₹271.

This development comes at a time when reports claimed that quick commerce platform Blinkit is shifting from a marketplace-led model to an inventory-based model effective September 1.

In a letter to shareholders post Q4 FY25 results, Akshant Goyal, chief financial officer, Eternal, said that assuming that Blinkit were to own 100% of the inventory in FY25, it would have "ended up deploying less than ₹1,000 crore of working capital towards owning inventory (about 5% of FY25 NOV of ~INR 22,000 crore). This is because of the meaningfully higher inventory turns in quick commerce. Hence, we expect working capital investments in the context of the overall scale of the business to be fairly low. Whatever investments we make will also yield a healthy ROCE given the incremental growth and margin opportunity."

Blinkit reported a 134% increase in its gross over value to ₹9,421 crore in Q4 FY25, compared to ₹4,027 crore a year back.

The net order value stood at ₹7,362 crore in the March quarter, up 121% from ₹3,336 crore in Q4 FY24.

Eternal's quick commerce business posted a revenue from operations of ₹1,709 crore in the January-March quarter of FY25 as against ₹769 crore in the March quarter of the fiscal year 2023-24.