Blinkit to Own All Inventory, Eyes 3,000 Dark Stores for Higher Margins

India's leading quick commerce platform, Blinkit, is transitioning from a marketplace model to a first-party (1P) inventory-led approach over the next two to three quarters. The move is aimed at achieving better margin control, improving operational efficiency, and offering brands relief from administrative complexities.

“On the assortment side, nothing will change in the selection, because moving to 1P (first party) reduces the administrative and licensing burden, significantly for both us and the brands. We do expect that there will be some positivity in terms of operational metrics around availability, fill rates that will improve on the platform,” shared Eternal executives in a post-earnings call with analysts.

Blinkit Expects Margin Expansion and Capital Impact

1% Margin Gain Anticipated

As per CFO Akshant Goyal, the shift is expected to result in a 1% point increase in margins over time. By owning inventory outright, Blinkit will have greater flexibility in pricing, procurement, and warehouse distribution, making the business model more sustainable in the long run.

“We expect that there will be some positivity in terms of operational metrics around availability, fill rates…”

However, the transition is likely to increase working capital requirements, as Blinkit will now carry stock on its books — a major shift from its previous model of connecting buyers and sellers.

Impact on Hyperpure’s B2B Vertical

The company noted that this transition will reduce Hyperpure's non-restaurant B2B segment, as many of its clients were sellers operating on Blinkit's marketplace model. The consolidation reflects an increased focus on core profitability and a streamlined supply chain strategy.

Blinkit Expands Physical Footprint, Targets 3,000 Dark Stores

In its quest to dominate the ultra-competitive quick commerce space, Blinkit added 243 net new stores in the quarter, bringing its total dark store count to 1,544 as of June 2025.

The company is on track to meet its goal of 2,000 stores by year-end, after which it will set its sights on a larger milestone of 3,000 dark stores. This aggressive expansion is designed to enhance last-mile delivery efficiency and support its new inventory model.

Beyond Metro Markets: Tier 2 & 3 Cities in Focus

Executives highlighted significant growth potential in markets beyond India’s top 15 cities, where lower operating costs and only a marginal dip in order values allow Blinkit to pursue higher profitability. The expansion into smaller cities could drive better returns and wider adoption of quick commerce.

Margin Recovery Despite High Costs

Despite heavy expenditure associated with store expansion and seasonal variables, Blinkit’s profitability improved this quarter.

“Directionally, the margins have improved from -2.4% to -1.8% in this quarter. And we expect that trajectory to continue, subject to competitive intensity remaining the same,” said Goyal.

“We see an influx of new players in this segment every now and then, and we see varying aggression by existing competitors depending on their balance sheet and near-term growth objectives. Under no circumstances will we let go of our market position here, and lose sight of the size of the prize in the long term,” stated Blinkit CEO Albinder Dhindsa.

Eternal's Q1 FY26 Performance: Revenue Up, Profits Down

On a consolidated level, parent company Eternal posted Rs 7,167 crore in operating revenue for Q1 FY26, a significant increase from Rs 4,206 crore in the corresponding quarter last year. The growth was led by Blinkit and Hyperpure.

However, net profits fell sharply to Rs 25 crore, marking a 90% decline from Rs 253 crore in Q1 FY25. The drop is attributed to slower growth in food delivery and continued investments in Blinkit's customer acquisition and infrastructure buildup.

Foreign Shareholding Cap and Status

In a move to manage foreign investments, Eternal had earlier capped foreign shareholding at 49.5% through a shareholder resolution. As of the latest quarter, foreign ownership stands at approximately 43%, ensuring compliance with internal policies and strategic control.

Conclusion: Blinkit Bets Big on Efficiency and Long-Term Growth

Blinkit's transition to an inventory-first model signals a decisive shift in the quick commerce narrative—from growth at all costs to sustainable profitability. With a roadmap to 3,000 dark stores, improved margin projections, and expanding geographic focus, the Zomato-owned platform is building the infrastructure to dominate the evolving retail landscape.

Although profitability is still under pressure due to capital investments, the positive trajectory in margins and operational metrics shows strong potential. By tightening control over inventory, reducing vendor dependencies, and deepening presence in Tier 2 and 3 cities, Blinkit is paving the way for long-term leadership in India's fast-growing quick commerce segment.