Eternal Ltd.Blinkit Hits Breakeven, Eyes 5-6% Margins

Eternal Ltd. achieved a significant milestone in Q3 FY26 as Blinkit reached breakeven with 0% adjusted EBITDA margin, expanding 130 basis points quarter-on-quarter despite intense competitive pressures.

The company delivered robust 130% year-on-year like-for-like growth, while contribution margins improved 90 basis points even as store throughput declined 6-7% due to strategic assortment expansion into higher-margin categories. Management maintains high confidence in achieving long-term EBITDA margins of 5-6% of net order value, with several cities already operating at 5% margins, and targets return on capital employed exceeding 40% through automation and capital efficiency.

The inventory model transition is 90% complete, delivering a 1% margin benefit with full realization expected within six to nine months. Store expansion guidance stands at 3,500-4,000 stores to sustain 100% year-on-year growth, contingent on rational competitive behavior. The going-out business posted 20% growth and is expected to reach breakeven within four to six quarters following the District Pass membership launch, supporting the $3 billion FY30 net order value target.