Eternal Limited Raises Quick Commerce Margin Guidance To 6% In Q1FY27 Call

Eternal Limited (formerly Zomato Limited) has released the official transcript of its Q1 FY27 earnings conference call held on July 22, 2026, offering investors deeper insights into the company’s operational performance, profitability roadmap, and competitive positioning. During the discussion, senior management shared updates on Blinkit’s margin outlook, store expansion strategy, customer behavior, and the evolving quick commerce landscape.

Blinkit EBITDA Margin Guidance Raised

One of the key takeaways from the conference call was the company’s improved profitability outlook for Blinkit, its quick commerce business. Management increased its long-term EBITDA margin guidance to 6%, moving to the upper end of its previously communicated 5–6% target range.

The revised guidance reflects growing confidence in Blinkit’s operational efficiency and its ability to deliver sustainable profitability while continuing to scale.

Larger Stores Driving Better Unit Economics

Chief Financial Officer Akshant Goyal highlighted that the company’s increased investment in store infrastructure is beginning to generate meaningful returns.

According to management, higher capital expenditure per store and larger average store sizes are improving operational efficiency, strengthening unit economics, and enhancing long-term margin visibility. These investments are expected to support future growth while maintaining healthy profitability.

Customer Growth Driven by Higher Order Frequency

Eternal Limited also emphasized strong engagement from its existing customer base.

Management revealed that customers acquired several years ago are now spending nearly three times more than they did three years earlier. Importantly, this increase is being driven primarily by higher order frequency rather than a significant rise in Average Order Value (AOV), indicating stronger customer loyalty and recurring usage of the platform.

Existing Cities Continue to Power Growth

Chief Executive Officer Albinder Singh Dhindsa stated that the majority of Blinkit’s order volume growth continues to originate from cities where the company already operates.

Instead of relying heavily on rapid geographic expansion, Eternal is focusing on increasing penetration, improving service quality, and expanding customer engagement within existing markets, which management believes offers a more efficient path to sustainable growth.

Competition Becoming More Predictable

Discussing the competitive environment, CEO Albinder Singh Dhindsa acknowledged that the first quarter represented one of the most intense periods of competition in the quick commerce industry.

He noted that competitors have largely concentrated their promotional spending on grocery discounts and delivery fee subsidies. However, management believes there is limited financial capacity for rivals to sustain significantly deeper discounting without increasing operating losses.

As a result, Eternal expects the competitive landscape to become more stable, allowing the company to remain focused on executing its long-term strategy centered on profitable growth, operational efficiency, and customer retention.