Eternal Limited (formerly Zomato) held its Q2FY26 earnings call on October 16, 2025. Key discussion points included Blinkit’s growth strategy, marketing spend, and profitability targets. Management highlighted the importance of balancing growth with profitability and adapting to competitive pressures. This analysis covers the core themes discussed and notable financial details shared during the call.
Blinkit’s Growth and Marketing Strategy
Eternal Limited is focused on growing Blinkit by targeting new consumers and onboarding them at reasonable marketing costs. The company plans to continue investing in marketing as long as healthy Customer Acquisition Cost (CAC) and Lifetime Value (LTV) are observed. Marketing spend is still skewed towards larger cities but is increasing in emerging cities as well.
Profitability and Financial Outlook
Eternal Limited views Adjusted EBITDA margin and break-even as outcomes, rather than specific targets. Mature parts of the business are already EBITDA positive (some cities north of 3% Adjusted EBITDA margin). Overall Adjusted EBITDA is a weighted average, influenced by expansion costs and competitive dynamics.
Food Delivery Growth and Strategy
The company acknowledges macro headwinds impacting food delivery growth and aims to create new use cases for ordering food. They anticipate a slow uptick in growth rate but expect it to increase over time. The full impact of changes like minimum order value adjustments will be seen in Q3FY26.
Quick Commerce Business Model Transition
Transitioning to a 1P (first-party) model in quick commerce will take four to six quarters to fully realize. Margin gains will start happening immediately, with an overall margin accretion of 1% expected over time. This involves negotiating contracts directly with brands.
Store Expansion and Reach
Eternal Limited plans to operate around 2,100 stores by the December quarter and 3,000 stores by March 2027. Existing geographical footprint covers about 20% of the overall targetable retail market. Future expansion will depend on product fitment, balance sheet cash, and available opportunities.
Key Financial Metrics and Guidance
The company expects year-on-year NOV (Net Order Value) growth to remain above 100% for the next one or two years. District business losses are expected to improve in FY27. Q2 NOV to GOV (Gross Order Value) ratio was affected by a change in product mix due to festivals.
Source: BSE
