Eternal Ltd.’s quick-commerce platform Blinkit is about to undergo a dramatic business model overhaul. Starting September 1, the company will drop its marketplace-style operations and instead take full control of its product inventory, stepping into the role of a direct seller.
This isn’t just a structural change—it’s a strategic pivot aimed at fattening profit margins and tightening operational control. By stocking and selling products directly to customers rather than depending on third-party sellers, Blinkit is hoping to unlock efficiencies that were previously out of reach.
The move comes after Eternal imposed a 49.5% cap on foreign investment in Blinkit, a regulatory step required to qualify for running an inventory-led e-commerce business under Indian law.
JM Financial, which is bullish on the move, believes this new setup will allow Blinkit to widen its product mix, streamline logistics, and trim back on legal and compliance expenses. Analysts at the firm expect Blinkit’s EBITDA margin—as a share of gross order value—to grow by 50 to 110 basis points. That’s a noteworthy jump, considering the long-term goal is a margin of 4–5%.
If the transition rolls out smoothly, JM Financial expects Blinkit to hit EBITDA break-even as early as the December quarter—much sooner than the market anticipates.
Looking ahead, Blinkit is projected to hit a gross order value of ₹57,900 crore in FY26, with operating margins climbing from 0.5% that year to 2% in FY27. In comparison, Zomato’s core food delivery business is expected to clock in a GOV of ₹45,400 crore in FY26, with a healthier operating margin of 4.7%.
Despite the gap, Blinkit’s roadmap has caught investor interest. JM Financial has reaffirmed its ‘Buy’ call on Eternal, assigning the stock a target price of ₹320. Eternal shares responded positively, rising 3% to close at ₹271.25 on the NSE, even as the Nifty 50 slipped by 0.25%.
