Eternal’s Q1 Profitable Show
It was business as usual for Eternal in Q1. Buoyed by Blinkit’s inventory model and food delivery vertical’s steady march, the foodtech giant posted yet another profitable quarter. The only hiccup appeared to be AI and going-out bets, which continue to be in investment mode.
Here is a quick look at Eternal’s Q1 FY27 numbers:
- Net profit rose 3.7X YoY to ₹92 Cr
- Operating revenue zoomed 182% YoY to ₹20,211 Cr
- Total expenses soared 173% YoY to ₹20,314 Cr
Blinkit’s Growth Engine: The quick commerce arm remained Eternal’s primary growth engine, commanding over 77% of total operating revenues in Q1. Supported by 200 new dark store additions (taking total to 2,443) and rising user retention across major metro areas, Blinkit’s net order value continued to surge. This helped the vertical post an adjusted EBITDA of ₹102 Cr, demonstrating improving unit economics and scale.
Going forward, Blinkit plans to rely on dark store density, supply chain efficiency and gourmet offerings to build a moat even as CEO Albinder Dhindsa opines that the worst of discounting wars in the quick commerce space is over.
The Core Resilience: Zomato remained the foodtech giant’s profit driver, generating ₹3,100 Cr in operating revenue and ₹606 Cr in adjusted EBITDA in Q1. Higher order frequencies, network density and operating efficiencies helped Zomato improve margins, which helped eternal generate healthy cash flow despite rivals trying low-commission playbooks.
The District Story: Unlike Zomato, the going-out platform continued to grapple with rising losses even as usage and engagement continue to scale. With 45,000 restaurants and 5,000 movie screens under its belt, Eternal still appears to be in build-out mode in the going-out category.
AI & Other Bets: In tandem with its Q1 results, Eternal also announced an internal restructuring. The foodtech major is carving out AI-native platform Nugget into a dedicated subsidiary as it continues to scale investments into the vertical in Q1. It is also ring-fencing its community initiatives, including the Blinkit Ambulance Service and Feeding India, under a not-for-profit arm.
As the foodtech major continues to fire on all cylinders, here is how Eternal fared on the financial front in Q1…
From The Editor’s Desk
Inside The Semicon 2.0 Push
- Earlier this month, the Union Cabinet approved India Semiconductor Mission 2.0, with a proposed outlay of ₹1.25 Lakh Cr. With this, the Centre aims to focus more on electronics systems and chip design, rather than just manufacturing.
- The second phase of the mission introduces a grant-plus-equity model, under which the state will co-invest alongside private capital without seeking board seats. With this, the government aims to close the IP financing gap that hindered India’s fabless ambitions.
- Yet founders and investors still have unresolved questions: how milestones will be linked to capital, how bridge funding between VC rounds will work, and what rules will govern government shareholding, veto rights and cross-border deals in the sector.
Zetwerk Vs Ayr Energy
- Months after the IPO-bound contract manufacturer accused Ayr Energy and its founder of using stolen confidential information, the US-based transformer manufacturer has hit back with legal claims of its own.
- Ayr Energy has accused Zetwerk of trade secret theft, trademark infringement and false advertising. It is seeking at least $1 Bn in damages and a ban on the import of the allegedly infringing transformers into the US.
- This comes close on the heels of Zetwerk receiving SEBI’s nod to float its public issue. In March, the manufacturing major confidentially filed its DRHP for an IPO, which will comprise a fresh issue of $300 Mn and an OFS of up to $150 Mn.
InCred Finance’s FY26 Show
- InCred Holdings’ lending tech arm reported a 17.1% YoY jump in its consolidated net profit to ₹438 Cr in FY26. This came on the back of total income zooming 36% YoY to ₹2,567 Cr during the fiscal under review.
- Buoyed by strong expansion of its lending business, InCred Finance’s AUM stood at ₹15,881 Cr as of March 2026. However, return on managed assets declined to 2.7% from 3% a year earlier due to higher credit costs.
- The results come as sister firm InCred Holdings is eyeing a D-Street debut. The company has received SEBI’s approval to launch its IPO, which will comprise a fresh issue of shares worth up to ₹1,250 Cr and an OFS of up to 9.9 Cr shares.
More Tax Scrutiny For Meesho
- The proxy advisory firm has approached the SEBI, seeking an examination of the GST position adopted by the ecommerce major’s logistics arm Valmo and the adequacy of related disclosures to investors. Meesho has rejected the allegations.
- As per InGovern, Valmo appeared to classify freight recovered from customers as a goods transport agency service to avail lower 5% GST treatment applicable to such services. For context, ecommerce services attract an 18% tax rate.
- The proxy advisory firm also said that the financial benefits generated by the GST structure allow Meesho to subsidise shipping charges, offer competitive freight rates to sellers, fund customer discounts and improve its unit economics.
Rumblings At Bira91
- The craft beer brand’s founder Ankur Jain has stepped down from the startup’s board and relinquished executive control and ownership. Jain and his family have surrendered their 17.8% stake in the D2C brand as part of a settlement with investors and lenders.
- The settlement clears a key hurdle for a planned recapitalisation that could help revive the beer maker after a year of operational and financial stress
- One of India’s earliest craft beer brands, Bira91’s conversion to a public company required the brand to obtain fresh excise approvals across several states. This disrupted sales, delayed salary payments, and kicked off vendor disputes and legal battles.
Inc42 Markets
Inc42 Startup Spotlight
How Khageshvara Is Redefining India’s Air Logistics?
There is no dearth of Indian startups building air taxis. Yet very few are building high‑payload, runway‑independent aircrafts that can move critical cargo where roads and runways fall short. Khageshvara is trying to fill this void with its indigenous eVTOL platforms.
Logistics In The Air: Founded in 2023, Khageshvara Aviation is developing electric vertical take-off and landing (eVTOL) aircraft for defence, disaster response and industrial logistics use cases. It is focusing on platforms that can operate without conventional runways while carrying payloads of up to 400 kg, addressing needs that pure multirotor drones or traditional aircrafts struggle with.
The Autonomous Approach: Khageshvara’s eVTOLs combine the vertical lift of multirotor drones with the range and efficiency of fixed‑wing aircraft using proprietary tilt‑rotor technology. The Jaipur-based startup has also built a ground control system and autonomy software stack featuring AI-based tracking, mission planning, object detection and GPS‑denied navigation.
An Indigenous Stack: Khageshvara’s under-development lineup includes K‑Vaayu for defence logistics and medical deliveries, K‑Rudra for industrial and tactical cargo, and K‑Ospera that is a heavy cargo eVTOL aimed at 400 kg‑class missions. Beyond eVTOLs, it also earns revenue through custom UAV development and licensing of its software and subsystems, with plans to launch an eVTOL‑as‑a‑service model soon.
With the broader Indian eVTOL market projected to become a $4.3 Bn opportunity by 2032, can Khageshvara become the backbone of India’s air mobility sector?
Infographic Of The Day
Be it L’Oréal’s signing a deal to acquire Innovist or Polygon picking up for Coinme, M&A activity is accelerating across the Indian startup ecosystem. Here is all about the biggest startup buyouts of H1 2026…
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