Eternal Reaches Adjusted EBITDA Profitability in Q3 as Blinkit and Hyperpure Gain Scale
Eternal, the parent company of Zomato, has reported adjusted EBITDA profitability for the third quarter, marking a significant milestone for one of India’s most closely watched consumer internet groups. The improvement was driven primarily by operational gains at quick-commerce unit Blinkit and B2B food supply arm Hyperpure, according to disclosures highlighted by Inc42.
The result underscores a broader shift underway across global consumer startups: moving from growth-at-all-costs toward disciplined execution and unit-economics-led expansion.
Blinkit emerges as a profitability driver
Once seen as a capital-intensive bet, Blinkit has become central to Eternal’s turnaround narrative. The quick-commerce platform has benefited from tighter cost controls, higher order density, and improved utilization of its dark-store network.
While Eternal did not disclose segment-level profit figures in detail, management indicated that Blinkit’s contribution margin improved meaningfully during the quarter. That progress reflects a broader recalibration in the quick-commerce sector, where aggressive expansion has given way to consolidation and operational efficiency.
Globally, investors have grown skeptical of rapid delivery models that fail to demonstrate a path to profitability. Blinkit’s performance suggests that scale, when paired with disciplined execution, can still support sustainable margins.
Hyperpure’s steady role in margin expansion
Hyperpure, Eternal’s B2B supply platform serving restaurants and cloud kitchens, also played a key role in the quarter’s results. Unlike consumer-facing delivery businesses, Hyperpure operates on longer-term contracts and more predictable demand patterns.
The unit has benefited from deeper penetration among restaurant partners and improved supply chain efficiencies. For Eternal, Hyperpure provides a counterbalance to the volatility of consumer demand, offering steadier cash flows and margin visibility.
Although Hyperpure does not attract the same public attention as Blinkit, its contribution highlights the value of diversified revenue streams within consumer tech groups.
Why adjusted EBITDA matters now
Adjusted EBITDA has become a closely watched metric for late-stage startups and public-market-listed tech companies, particularly in emerging markets. It offers investors a clearer view of core operating performance, excluding one-time costs and non-cash items.
Eternal’s move into adjusted EBITDA profitability signals that its underlying businesses are approaching — or have reached — operational break-even, even if net profitability remains a longer-term goal.
For founders and investors, the message is increasingly clear: capital markets now reward predictability and discipline over headline growth alone.
A broader reset in India’s startup ecosystem
Eternal’s Q3 performance reflects a wider recalibration across India’s startup landscape. As global funding tightened, many high-growth companies were forced to prioritize efficiency, rationalize expansion plans, and focus on sustainable unit economics.
Quick commerce, once viewed as a cash-burning experiment, has become a test case for whether logistics-heavy consumer models can mature into viable businesses. Blinkit’s improving performance suggests that, under the right conditions, they can.
The results also place pressure on competitors, both domestic and global, to demonstrate similar progress.
Global relevance beyond India
Although Eternal operates primarily in India, its trajectory mirrors patterns seen globally. Consumer tech companies from food delivery to on-demand logistics have faced investor pushback over prolonged losses.
Companies that can show a credible path to profitability — even at the adjusted EBITDA level — are increasingly differentiated in public and private markets alike.
For international investors tracking emerging-market tech, Eternal’s results reinforce India’s position as a proving ground for scalable, profitability-focused consumer internet models.
What remains unclear
Despite the positive headline, several questions remain unanswered:
- When Eternal expects to achieve net profitability
- How sustainable Blinkit’s margins are as competition evolves
- The extent to which Hyperpure can scale without margin compression
The company has not provided detailed forward guidance, suggesting it remains cautious amid a competitive and price-sensitive market.
A milestone, not the end point
Eternal’s adjusted EBITDA profitability in Q3 represents an important milestone — but not a conclusion. The challenge now is sustaining performance while navigating competitive pressures, consumer demand fluctuations, and regulatory scrutiny.
For the global startup ecosystem, the takeaway is instructive. Profitability is no longer a distant aspiration; it is becoming a prerequisite for credibility.
Eternal’s latest results show that even in capital-intensive consumer businesses, disciplined execution can bend the curve. Whether that momentum holds will shape not just the company’s future, but investor confidence in India’s next generation of consumer technology leaders.
