Hyperpure Q2: Revenue Falls To INR 1,023 Cr On Blinkit’s Inventory Model  Shift

As Eternal transitioned its quick commerce to inventory model in Q2 FY26, its adjacent B2B business Hyperpure was impacted significantly. In the quarter under review, Hyperpure’s revenue declined 31% YoY and 55% QoQ to INR 1,023 Cr. Despite the decline in revenue, Hyperpure reported a PAT of INR 1 Cr as against a loss of INR 4 Cr in the last year quarter, as per the company’s PnL statement.

The major factor behind the decline in its revenue was an over 90% dent the company witnessed in its non-restaurant business. The revenue generated by this segment shrunk to INR 83 Cr in Q2 FY26 from INR 811 Cr in the same quarter previous year.

In its shareholder letter, Eternal CFO Akshant Goyal attributed quick commerce arm Blinkit’s transition from a marketplace model to an inventory-led ownership model as a key reason behind Hyperpure losing a chunk of its non-restaurant business.

Under the previous marketplace model, Hyperpure’s non-restaurant business supplied many B2B buyers who acted as sellers on Blinkit’s platform. With Blinkit now owning inventory directly, the need for these third-party sellers diminished, leading to a scale down of Hyperpure’s non-restaurant business. 

This transition reduced the revenue recognised by Hyperpure since many buyers were previously included as part of the marketplace transactions facilitated by Hyperpure. CFO Goyal expects this revenue to become nil in the upcoming quarters.  “We expect the core restaurant business to continue growing at 40% YoY, while we will scale down non-restaurant business to zero,” he said. 

Beyond the revenue decline, Eternal’s Hyperpure business showed several noteworthy developments in the quarter:

Core Restaurant Business Growth: The core restaurant segment of Hyperpure grew steadily by 42% YoY and 15% QoQ, reaching INR 940 Cr in revenue. The company said that this part of the business is showing healthy growth despite the overall revenue decline.

EBITDA Loss Reduction: Despite the topline decline, overall Hyperpure segment’s adjusted EBITDA loss narrowed from to INR 5 Cr, driven by better profitability dynamics in the core restaurant business and cost improvements including sourcing and supply chain efficiencies.

Margin Improvement: Adjusted EBITDA margin for the core restaurant business improved significantly from -2.2% in Q1 FY26 to -0.9% in Q2 FY26, reducing the adjusted EBITDA loss to INR 8 Cr from a higher loss in the prior quarter. The company expects the core restaurant business to become profitable within the next two quarters with sustained margin improvements thereafter.

The decline comes at a time when Blinkit has shifted its business model to inventory-led from marketplace-led in Q1FY26. The company wants to attain better margins and tighter control over product quality, pricing, inventory and delivery timelines. It has already attained about 80% of the quick commerce net order value (NOV) to own inventory by Q2FY26, with a target to reach about 90% in the following quarters. 

As a result of this model change, Blinkit’s adjusted revenue zoomed 756% YoY and 312% QoQ to INR 9,891 Cr in Q2 FY26 as sales now include the full value of goods sold rather than just marketplace commissions.

District Goes Global

Along with the financial disclosures, CEO Deepinder Goyal also announced that Eternal has launched its “Going-Out” app, District, in the UAE, marking its first international market for this platform. 

“We already have a dining-out business in the region, and with District, we are now bringing both the dining-out and live events offerings onto a single app (much like what we are doing in India). We chose to expand live events in the UAE because it is a global hub for outdoor 7 entertainment and can potentially turn out to be an attractive market for us,” Goyal added. 

The “Going Out” vertical for Eternal reported a total revenue of INR 189 Cr in Q2 FY26, up 23% YoY from INR 154 Cr in Q2 FY25. Sequentially, the revenue is down 9% from INR 207 Cr.  In NOV terms, the going out vertical stood at INR 2063 Cr in Q2 FY26 as against INR 1562 Cr in Q2 FY25, translating into 32% YoY growth. Quarterly, NOV grew marginally by 2.4%.

During the Q2 earnings call, CFO Akshant shared a 30% YoY growth for the District vertical, with profitability improving in percentage terms. However, the company is expecting to stabilise absolute quarterly losses for the vertical in a range of INR 60-70 Cr in the near future. 

The company plans to continue category-building investments, with losses expected to remain stable. It has already onboarded around 3,400 outlets across six cities and claims to have enabled 60,000+ transactions to date. 

On a broader level, Eternal’s consolidated Q2 net profit plunged 63% YoY to INR 65 Cr, while the top line grew 183% YOY during the quarter under review to INR 13,590 Cr.

Shares of Eternal ended today’s trading session down 1.73% to INR 348.40.