Zomato’s parent company, Eternal Ltd, took a profitability hit in the final quarter of FY25, dragged down largely by growing losses at its quick-commerce arm, Blinkit. The financial results, released on May 1, paint a picture of a company doubling down on rapid expansion—even if it comes at a steep cost.
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Blinkit’s operating losses (excluding stock-based compensation) jumped sharply to Rs 178 crore in the January–March period, up from Rs 103 crore the previous quarter. While revenue grew by 22% quarter-on-quarter—reaching Rs 1,709 crore, compared to Rs 1,399 crore in Q3—the aggressive spend on scaling operations and marketing outweighed gains. Year-over-year, Blinkit’s revenue has more than doubled, but it’s come with growing pains.
With Zepto, Swiggy Instamart, and a handful of new players heating up the quick-commerce race, Blinkit has chosen to lean back into growth mode, shelving earlier efforts to tighten margins and move closer to breakeven. The company ramped up investments in dark stores and customer acquisition in Q4, chasing reach in a market that’s becoming more crowded by the day.
Margins, meanwhile, remained flat—a disappointment for executives who were hoping for improvement. On a call with analysts, Blinkit CEO Albinder Dhindsa pointed to the mounting competition: “We’re now seeing multiple platforms fight for the same users across categories. That makes it harder to push delivery charges or steer demand toward higher-margin products.”
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While Blinkit’s top-line growth remains strong, the path to profitability looks longer than expected as quick commerce moves into a new, more competitive phase.
