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Eternal’s Q-commerce division, Blinkit, competes with the food delivery sector in terms of order value.

Groceries have caught up with food at Zomato and Blinkit parent Eternal, marking a turning point for the delivery giant that fetches anything from household essentials to cuisines of choice.Eternal’s quick-commerce arm Blinkit nearly equalled for the first time its once-mainstay food delivery business Zomato in net order value (NOV)— excluding discounts—in April-June, accounting for about ₹10,000 crore of the total ₹20,183 crore order value during the quarter, it said in an exchange filing on Monday detailing Q1 FY26 earnings. Quick commerce now makes for almost half of Eternal’s $10 billion annualized NOV, signaling a major shift in the company’s growth engines.Also Read | Aditya Mangla appointed CEO of food delivery business at EternalBistro drives up food delivery lossesDespite declaring in the Q4 FY25 earnings call that it saw “no future” for ultra-fast food delivery, Eternal has ramped up investments in Bistro, a 10-minute meal initiative under Blinkit.Losses at the food delivery business mounted during the quarter, driven by the company’s investments in Bistro, which is a capex-heavy initiative. Although Bistro operates under the Blinkit brand, its financial impact is reflected in the food delivery segment in Zomato’s reporting structure—contributing to the sharp drop in profitability for that segment in Q1 FY26.Also Read | Mint Explainer: What FDA’s crackdown on Zepto, Blinkit means for quick commerceIn Q1 FY26, Eternal reported a sharp 90% year-on-year drop in profit after tax to ₹25 crore, from ₹253 crore in the same quarter last year. This precipitous fall in profit was driven largely by Bistro-related investments and the upfront costs of transitioning Blinkit to an inventory-led model.“The increase in quarterly losses (in the food delivery business) is largely on account of investments in the 10‑minute food delivery service Bistro, where the kitchen infrastructure is owned and operated by Blinkit…” the company said in a shareholder letter.Despite the sharp fall in quarterly profit, Eternal’s shares rose 5.4% to close at ₹271.2 apiece on the BSE on Monday, boosted by the company’s strong quick-commerce performance and expectations of an uptick in the food business going forward, analysts said.“In the food business, there’s going to be acceleration in the medium term. They are going to see growth rates of more than 20%, which was earlier in the range of high teens. The other very big positive surprise was the performance of quick-commerce—growth rates have been slightly ahead of expectations. Margins have largely bottomed out in the quick-commerce business, we may not expect to see losses increasing significantly from here on if competitive intensity remains at these levels,” said Karan Taurani, executive vice-president at Elara Capital.The company’s renewed bet on ultra-fast meals comes despite Zomato shuttering its Quick and Everyday services last quarter—models that relied on restaurant in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. 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