Broker’s call: Eternal (Buy)

Blinkit's subsidiary, Eternal, has demonstrated robust growth driven by its expansion of dark-stores and increased market share. The company anticipates a substantial 76% year-over-year increase in net order value (NOV) for Q2FY27E, with adjusted EBITDA projected at ₹150 crore and an adjusted EBITDA margin of 0.8% (up 15 basis points quarter-over-quarter).

Blinkit maintains its position as the market leader and the sole major quick commerce (QC) player to achieve EBITDA-level profitability, despite intensified competition. The company projects EBITDA margin to reach 3.1% by FY29E, fueled by operating leverage, enhanced store productivity, and improved store economics. The food delivery (FD) segment is expected to generate adjusted EBITDA of ₹3.8 billion by FY29E (approximately 5.7% of NOV), serving as a vital cash-generating source and bolstering overall free cash flow (FCFF).

The analysts believe Blinkit's value proposition of convenience has significant potential to grow further as its dark-store count approaches 3,000. They perceive limited near-term risks to the existing duopoly structure in the food delivery market. As both food delivery and QC transition into cash-generative engines, there is potential for value discovery in 'going out.'

The analysts maintain a BUY rating with a target price (TP) revised to ₹425, to be implemented six months forward. Potential risks include a slowdown in discretionary spending and externalities that could disrupt business operations.