It Is No Longer Just a Food Delivery Company

Blinkit crossing EBITDA breakeven with 2,243 stores and counting, and a concert economy bet that could add USD 125 million to EBITDA by FY30 

There is a version of the Eternal story that most investors know — a food delivery platform that fought a bruising competitive battle, survived, and emerged as one half of a stable duopoly. That story is true, but it is no longer the whole story. Eternal — formerly Zomato — is now three businesses simultaneously: a recovering and profitable food delivery operation, a quick commerce machine in Blinkit that has just crossed adjusted EBITDA breakeven, and a nascent going-out platform called District that is beginning to stake a claim on India’s live events economy.

Not Just Tailwinds

The food delivery business has accelerated for three consecutive quarters after bottoming out — and the nature of the recovery matters as much as the fact of it. This is not a macro-driven bounce. It is the result of deliberate product interventions: lower minimum order values for Gold members, a sharper focus on value-conscious consumers through affordable meal offerings under Rs 250, and platform fee increases that support revenue per order without triggering churn.

Net order value grew 16% year-on-year in FY26, with growth continuing to accelerate. Motilal Oswal expects food delivery NOV growth of approximately 20% for Q1FY27, with an adjusted EBITDA margin of 6.1% — within the management-guided range of 5-6%. The duopoly structure — Eternal and Swiggy controlling the market between them — means competitive dynamics are more rational than they have been at any point in the industry’s history. Motilal Oswal models approximately 20% GOV growth over FY27-28 and values the food delivery business at 35x FY28 EV/EBITDA, reflecting high user stickiness and a steady margin trajectory.

Blinkit — The Generational Opportunity 

Quick commerce is the bigger story — and the numbers support that characterisation. Blinkit has crossed adjusted EBITDA breakeven. Mature markets — cities and catchments where stores have been operating for over a year — are already delivering 5-6% EBITDA margins. The dark store network stood at 2,243 stores at the end of Q4FY26, with management on track for approximately 3,000 stores by March 2027. Newer cities are scaling with better-than-expected unit economics despite the competitive intensity from well-funded rivals.

Growth is moderating from the exceptional pace of the last two years — Motilal Oswal has revised FY27 estimates down to approximately 70% year-on-year NOV growth from 85-100% earlier — but the brokerage is careful to frame this as normalisation rather than deceleration. “Management’s guidance of 60%+ CAGR over the next few years suggests demand remains strong and the category remains underpenetrated, even in mature markets,” the report notes. For Q1FY27, Blinkit’s NOV is expected to grow 84.4% year-on-year, with contribution margin at 5.2%.

The valuation framing Motilal Oswal offers on Blinkit is striking. At the current market price, the stock implies an EV/EBITDA multiple of just 24x on Blinkit’s FY29 estimates — a level the brokerage describes as “lucrative for a long-term opportunity” in a category that remains structurally underpenetrated. Blinkit is valued using a DCF in the sum-of-parts, and that DCF — combined with 35x EV/EBITDA on food delivery — drives the Rs 380 target.

District — The Dark Horse 

The most intriguing part is on District — Eternal’s nascent going-out platform that is positioning itself as the destination for India’s affluent urban consumer’s entertainment spending. India’s live events market is already approximately Rs 200-220 billion, with concerts growing at 18-20% annually and ticketing contributing 50-60% of event revenue. Approximately 70% of urban Gen Z and millennial consumers attend at least one live event annually, and marquee events are consistently achieving 85-90% fill rates at higher-than-historical ticket prices.

Motilal Oswal estimates India’s concert economy could grow 2-2.5x over the next five years. District — if it executes well in a market that is episodic and execution-intensive — could contribute approximately USD 125 million to Eternal’s EBITDA by FY30. That number is not in current forecasts. It is pure optionality. But for a platform with Eternal’s urban user base, brand trust and payment infrastructure, the going-out category is a natural adjacency rather than a speculative diversification.

The thread connecting all three businesses is the affluent urban Indian consumer — a cohort that orders food on Eternal, restocks groceries on Blinkit, and increasingly uses District for live entertainment. Each touchpoint deepens the relationship and creates cross-sell opportunity. “Eternal is a play on the discerning, affluent urban consumer’s wallet share,” the report states — and the three businesses together capture more of that wallet than any single-category competitor can.

The Path to USD 1 Billion EBITDA

Management has guided for USD 1 billion in adjusted consolidated EBITDA by FY29. Motilal Oswal’s estimates decompose this as approximately USD 500 million from quick commerce, USD 425 million from food delivery, and the balance from going-out, District, Hyperpure and other businesses. For a business that reported group EBITDA of approximately Rs 12 billion in FY26, this represents a dramatic earnings inflection — one that the brokerage believes is underwritten by store maturity in Blinkit, operating leverage in food delivery, and the nascent contribution from District.

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