Eternal shifts Blinkit strategy from market share to returns as profitability improves
Eternal is prioritising retention, supply-chain efficiency and higher returns over discount-led share gains. Blinkit’s June-quarter adjusted EBITDA rose to Rs 102 crore from Rs 37 crore sequentially, while food delivery delivered Rs 606 crore in adjusted EBITDA. Jefferies raised its target price to Rs 415.
Jefferies retained Buy on Eternal and raised its target price to Rs 415 after improved Blinkit profitability and strong food-delivery margins. Eternal is prioritising returns, retention and supply-chain efficiency over discount-led market-share growth, while expanding premium Blinkit Gourmet stores.
Why this matters
The strategy shift follows Eternal’s Q1 profit halving despite Blinkit’s record operating profit, and comes after shares rose 2% on 182% June-quarter revenue growth. It also follows CCI’s dismissal of a complaint over Zomato platform fees and pricing.
Retail-company signals are accelerating, up 1,082,000% QoQ.