Mumbai: Eternal Limited (formerly Zomato Ltd) has once again drawn investor attention after announcing the incorporation of a new wholly-owned subsidiary, Blinkit Foods Private Limited. The move is aimed at consolidating its presence in the quick-commerce and food services segment, further strengthening its growth strategy in the ultra-fast delivery market.
Eternal Stock Performance Post Announcement
Eternal’s stock has witnessed significant volatility in recent weeks. After rallying over 40% in the past six months, the stock touched a record high of ₹311.60 on July 22, 2025, following stellar Q1 FY26 earnings. The company reported 70% year-on-year revenue growth, fueled by strong performance from its quick-commerce arm, Blinkit.
Following the announcement of Blinkit Foods, Eternal shares saw a marginal decline of 1.5%, closing at ₹321.65 on August 22, 2025, as traders booked profits. Trading volumes, however, remained moderate compared to the July surge, signaling that market sentiment remains broadly positive.
Brokerages maintain an optimistic outlook, with analysts at DAM Capital initiating a “Buy” rating, setting a price target of ₹400, citing expected margin expansion and profitability in the quick-commerce vertical. Jefferies and other global firms have also raised price targets, acknowledging Blinkit’s accelerating growth trajectory.
What is Blinkit Foods?
Blinkit Foods Private Limited has been incorporated to manage the Bistro brand of 10-minute delivery kitchens, offering freshly prepared meals and snacks within ultra-short timelines. According to company filings, the subsidiary’s primary objectives include:
- Operating cloud kitchens under the Bistro brand
- Focusing on home-style meals and quick snacks delivered in 10 minutes
- Leveraging Eternal’s Blinkit network for last-mile delivery
Currently, the Bistro model operates 38 kitchens across Delhi-NCR and Bengaluru, with plans to expand aggressively. The company aims to capture two major demand segments:
- Customers seeking affordable, home-style food
- Users craving snackable options with instant delivery
Strategic Importance of Blinkit Foods
The launch of Blinkit Foods signals Eternal’s intent to monetize the fast-growing quick-commerce sector, which has seen massive adoption in India. The new subsidiary will work in synergy with Blinkit’s existing grocery delivery infrastructure to optimize supply chains, reduce costs, and boost unit economics.
Eternal CEO Deepinder Goyal stated that the company has learned from earlier pilots like “Quick” and “Everyday,” which were phased out due to operational challenges. With Blinkit Foods, Eternal plans a “calibrated investment approach” to ensure sustainable profitability.
Analyst and Investor Reactions
Market experts view Blinkit Foods as a game-changer for Eternal, given the untapped potential of hyperlocal food delivery. Analysts predict that Blinkit Foods, combined with the parent company’s food delivery and Blinkit grocery services, will strengthen Eternal’s ecosystem and help achieve EBITDA profitability by FY2026.
Institutional investors remain bullish, with Info Edge’s stake in Eternal now valued at over ₹37,000 crore. Even after Ant Financial offloaded part of its stake earlier this month, investor appetite has stayed strong, reflecting confidence in the company’s long-term strategy.
