Zomato
Indian food delivery and quick commerce marketplace, parent of Blinkit.
On the record
Checkpoint: Q2 FY27 earnings: watch Blinkit AOV, adjusted EBITDA, and dark-store share trend
The call
Zomato's food delivery business looks settled, but Blinkit's quick commerce engine is racing against Amazon, Flipkart, and Reliance while its order economics thin out.
Zomato owns the food delivery market in India through its Zomato app and also runs Blinkit, a super-fast grocery delivery service. The company makes most of its money from Blinkit now, but Amazon, Walmart's Flipkart, and Reliance are all launching their own quick-delivery services with huge budgets and no real obstacles stopping them. The real warning sign is that Zomato is getting more orders but charging less per order, which means profits could shrink fast if Amazon and the others grab market share. What matters most: whether Blinkit can keep its customers loyal and profitable while the price war continues, and whether new laws about gig workers in India push up Zomato's labor costs.
Why
01
AI pressure: AI shopping agents (Amazon Rufus, ChatGPT-style checkout bots). If AI agents start placing grocery and food orders directly, they could sit between Zomato and its customers someday. Could AI do the core job? Unlikely.
02
Bigger players: Amazon Now, Flipkart Minutes (Walmart), JioMart (Reliance). All three are live in Indian quick commerce with deep pockets, pushing Blinkit's average order value down even as order counts rise. Could a giant copy it? Yes, easily.
03
What protects it. Cash of ₹18,288 crore, a Zomato-Swiggy food delivery duopoly, and 2,443 Blinkit dark stores already built out.
What would change this call
Eternal's Q2 FY27 results (around October 2026) showing Blinkit's adjusted EBITDA and AOV trend. Would show whether Blinkit holds margin and pricing power against Amazon and Flipkart's push.
Amazon Now and Flipkart Minutes dark-store count and city coverage reported through late 2026. Would show how fast rivals are scaling capacity to contest Blinkit's market share.
Karnataka gig-worker legislation court ruling and any similar laws in other states. Would show whether Blinkit faces forced cost increases for its delivery workforce.
Amazon Now and Flipkart Minutes dark-store count and city coverage reported through late 2026. Would show how fast rivals are scaling capacity to contest Blinkit's market share.
Karnataka gig-worker legislation court ruling and any similar laws in other states. Would show whether Blinkit faces forced cost increases for its delivery workforce.
Key numbers
- Blinkit is 77.5% of Eternal's Q1 FY27 revenue
- Blinkit AOV slipped to ₹518 from ₹525
- Cash balance rose to ₹18,288 crore
Named risks
- Amazon, Flipkart, and Reliance simultaneously scaling well funded quick commerce networks against Blinkit.
- Blinkit average order value flat to declining (Rs 518 vs Rs 525) despite 182% revenue growth, signaling price war pressure.
- Karnataka Platform Based Gig Workers Act litigation could raise labor costs across roughly 1.16 million gig partners.
- Q1 FY27 profit missed analyst estimates and Macquarie maintains Underperform rating on competition risk.
- New Group CEO Albinder Dhindsa is early in tenure following founder's exit amid worker strikes.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Amazon (Amazon Now) | gaining on | Targeting 300+ cities with roughly Rs 2,800 crore committed, as of June 24, 2026 |
| Flipkart Minutes (Walmart) | gaining on | Adding about 100 dark stores per month, as of June 24, 2026 |
| Reliance JioMart | gaining on | Leveraging 3,100+ physical stores across 1,200+ cities into quick commerce, as of June 29, 2026 |
| Swiggy (Instamart) | losing to | Instamart has roughly 1,100 to 1,143 dark stores versus Blinkit's 2,443 as of July 19, 2026 |
| Zepto | losing to | Unlisted shares fell more than 32% since February 2026, reported June 29, 2026 |
Questions people ask
- Is Zomato profitable in 2026?
- Yes. Eternal Limited, Zomato's parent, reported a net profit of Rs 92 crore for Q1 FY27 (quarter ended June 30, 2026), up 268% year over year but down 47% from the prior quarter and below analyst estimates of Rs 258 to 300 crore.
- Who owns Zomato now?
- Zomato's parent, Eternal Limited (ticker ETERNAL), is publicly listed with no controlling owner. Mutual funds held 31.68% and foreign institutional investors 29.09% as of June 30, 2026. Alibaba's Antfin fully exited its stake via a $612 million block deal on August 6, 2025.
- Could AI replace Zomato's business?
- AI already handles customer support: Zomato's Nugget bot processed over 15 million conversations per month with an 85% resolution rate as of March 23, 2026, cutting support costs from $20M to $9M. But last mile delivery logistics and dark store fulfillment remain physical, capital heavy operations AI cannot replace.
- Who is Zomato's biggest competitor?
- Amazon Now, Walmart's Flipkart Minutes, and Reliance's JioMart are all scaling into quick commerce as of June 2026, alongside Swiggy's Instamart. Blinkit still leads with 2,443 dark stores versus Instamart's roughly 1,100 to 1,143 as of Q1 FY27 (June 30, 2026).
- Did Zomato change its name?
- Yes. The listed parent company was renamed from Zomato Limited to Eternal Limited effective February 6, 2025. Zomato is now the consumer food delivery brand within the Eternal group, which also owns Blinkit, Hyperpure, and District.
- How important is Blinkit to Zomato's revenue?
- Blinkit, Eternal's quick commerce arm, contributed 77.5% of Q1 FY27 revenue, or Rs 15,664 crore of Rs 20,211 crore total, as of the quarter ended June 30, 2026, making it the dominant revenue driver over core food delivery.
Timeline
- 2026-07-22Eternal reports Q1 FY27 revenue Rs 20,211 crore, profit Rs 92 crore, Nugget transferred to Carthero for Rs 35 crore
- 2026-07-19Report shows Swiggy Instamart trails Blinkit in dark store count, growth slowing two straight quarters
- 2026-06-29Amazon's rapid delivery push cited in $15 billion market value rout for Eternal and Swiggy
- 2026-06-24Amazon Now and Flipkart Minutes reported scaling quick commerce dark stores aggressively
- 2026-05-08Eternal contesting Karnataka Platform Based Gig Workers Act, 2025 in court
- 2026-03-23Nugget AI support platform reported cutting annual support costs from $20M to $9M
- 2026-02-17Eternal announces expanded OpenAI partnership across Zomato, Blinkit, and District
- 2026-02-01Deepinder Goyal steps down as MD and CEO; Albinder Dhindsa becomes Group CEO
- 2025-08-06Antfin Singapore (Alibaba) fully exits Eternal stake via $612 million block deal
- 2025-02-06Zomato Limited renamed to Eternal Limited
Revision history
24 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Eternal reports Rs 20,211 Cr revenue and Rs 92 Cr profit in Q1 FY27 (2026-07-22)
- Eternal Q1 results (2026-07-22)
- Eternal Q1 Results: Blinkit operating profit crosses ₹100 crore (2026-07-22)
- Eternal reports Rs 20,211 Cr revenue and Rs 92 Cr profit in Q1 FY27 (2026-07-22)
- Eternal Revenue More Than Doubles on Quick Commerce Growth (2026-07-22)
- Eternal Q1 profit jumps fourfold to Rs 92 crore on Blinkit growth (2026-07-22)
- Eternal Number of Employees 2026 (2026-06-29)
- Eternal (Zomato) Share Price Today (2026-07-22)
- Antfin to exit Eternal in $612 mn block deal (2025-08-06)
- Weeks after worker strikes, Eternal CEO Deepinder Goyal steps down (2026-01-21)
- Walmart's Flipkart, Amazon step up India 'quick commerce' bet (2026-06-24)
- Swiggy Chooses Profitability Over Scale (2026-07-19)