Eternal Sees Shift Away From Heavy Discounting
CEO Says Competitive Intensity Has Reached Its Peak
Eternal, the parent company of Blinkit and Zomato, believes the quick commerce sector is entering a more balanced phase after months of aggressive competition.
Speaking during the company's earnings discussion, CEO Albinder Dhindsa said the industry has likely reached its highest level of competitive intensity. He argued that rivals relying heavily on product subsidies and discounted delivery charges have limited room to increase incentives further without significantly worsening their financial losses.
According to the company, sustained price-led competition becomes increasingly difficult as businesses seek a path to long-term profitability.
Blinkit Prioritises Service Over Discounts
Investments Shift Toward Infrastructure and Execution
Rather than competing solely through lower prices, Eternal says Blinkit intends to strengthen its market position by improving execution.
Management highlighted investments in larger dark stores, supply-chain infrastructure, wider product assortment and geographic expansion as the key drivers of future growth. The company believes these improvements create stronger customer loyalty than temporary discounts.
Dhindsa also noted that customers acquired mainly through discounts may not remain loyal once promotional offers are reduced, making service quality and reliability more important over time.
Profitability Continues to Improve
Operational Efficiency Supports Margin Expansion
Alongside its commentary on competition, Eternal reported improving financial performance for Blinkit.
The quick commerce business recorded an adjusted EBITDA margin of 0.6% of net order value, roughly double the previous quarter, while adjusted EBITDA increased as order frequency, customer density and operational efficiencies improved. The company also expanded its network by adding 200 new stores during the quarter, taking the total to more than 2,400 locations.
Management now expects Blinkit's long-term EBITDA margin to reach the higher end of its previously guided 5%–6% range, although it did not specify a timeline.
Competition Remains Intense
Despite the optimism, Eternal acknowledged that competition in India's quick commerce market remains strong.
Blinkit continues to compete with established and emerging players including Swiggy Instamart, Zepto, Amazon and Flipkart-backed services. While promotional campaigns are still common, Eternal believes the industry is gradually shifting toward sustainable business models rather than unlimited cash burn.
Background
India's quick commerce industry has grown rapidly over the past few years, with companies promising grocery and essential deliveries in as little as 10 to 20 minutes.
The race for market share has led to aggressive discounting, subsidised delivery charges and significant investments in dark stores and logistics infrastructure. While these strategies accelerated customer adoption, they also raised concerns about long-term profitability across the sector.
Blinkit has emerged as one of the market leaders, making quick commerce one of Eternal's fastest-growing businesses.
Why This Story Matters
If discount-led competition begins to ease, India's quick commerce industry could enter a more financially sustainable phase.
Lower dependence on subsidies may improve margins across the sector while encouraging companies to compete through better product selection, faster deliveries and stronger customer service instead of short-term pricing incentives.
For investors, this transition could signal healthier long-term economics in a business that has traditionally required heavy spending to acquire and retain customers.
Balanced Analysis
Eternal's assessment reflects growing confidence that the industry's competitive environment is becoming more predictable.
However, the company's view remains a management outlook rather than a confirmed industry trend. Rivals may continue using targeted promotions if they believe discounts can accelerate market share gains or customer acquisition.
Ultimately, whether pricing wars truly subside will depend on how competitors balance growth ambitions with profitability. For now, Eternal is positioning Blinkit around operational excellence and infrastructure rather than deeper discounts, betting that sustainable execution will prove more valuable over the long term.
