Blinkit turns adjusted EBITDA positive in March as co aggressively bets on store expansion

For comparison, this is more than the number of stores that the Zomato arm added in the three preceding quarters cumulatively.

Including this cost of expansion, Blinkit turned adjusted positive in March. However, for the overall March quarter, it saw an ebitda loss of Rs 37 crore.

In the current quarter (Q1FY25), the management expects to add another 100 stores. With this aggressive store expansion planned (almost 2x store count in 12 months), Blinkit expects the overall adjusted ebitda is likely to hover around zero for the next few quarters.

In this steady state, it expects a 4-5% adjusted ebitda margin (as a percentage of GOV).

"While we are happy to be where we are today but also equally scared. Our journey in the last two years has, in so many ways, increased the expectations our stakeholders have from us and we will try our best to live up to them," Zomato CEO Deepinder Goyal said in a letter to shareholders.

During the fourth quarter, the quick commerce business achieved adjusted revenues of Rs 769 crore, which is almost double of what was reported in the last year.

The gross order value (GoV) for the reporting quarter increased 96% year-on-year to Rs 4,027 crore, compared with Rs 2,046 crore posted in the last-year period.

Analysts are bullish on Blinkit's outlook even going forward as Goldman sees an elevated growth profile for the quick commerce business at 53% FY24E-27E gross order value CAGR.

The brokerage believes quick commerce platforms could continue taking share from unorganised retail, since the pricing advantage of the former is substantial and the grocery TAM for Blinkit is not necessarily restricted.