Eternal Ltd., the parent company of Zomato and Blinkit, continued to invest aggressively in customer acquisition and brand building during the first quarter of FY27, spending ₹945 crore on advertising and sales promotion. The marketing outlay came as the company reported 182% year-on-year growth in operating revenue to ₹20,211 crore and a 268% increase in net profit to ₹92 crore, underscoring its strategy of balancing rapid expansion with improving profitability.
The advertising spend reflects Eternal’s continued focus on strengthening its food delivery, quick commerce, and newer consumer businesses amid intense competition in India’s online commerce market. While Blinkit’s rapid expansion remained the primary growth driver, sustained marketing investments are helping the company reinforce brand visibility and attract new users across its platforms.
Advertising Spend Remains a Key Growth Investment
Advertising and promotional expenses remained one of Eternal’s largest operating costs during the quarter.
Q1 FY27 Advertising Highlights
| Metric | Q1 FY27 |
|---|---|
| Advertising & Sales Promotion | ₹945 crore |
| Revenue from Operations | ₹20,211 crore |
| Net Profit | ₹92 crore |
| Total Expenses | ₹20,314 crore |
The company maintained a high level of marketing investment even as profitability improved, highlighting its emphasis on long-term market expansion rather than short-term margin optimisation.
Marketing Supports Multiple Consumer Businesses
Eternal’s advertising expenditure supports several fast-growing businesses within its portfolio, including:
- Zomato food delivery.
- Blinkit quick commerce.
- Hyperpure, the B2B restaurant supplies platform.
- District, the company’s going-out and lifestyle business.
Marketing campaigns are aimed at increasing customer acquisition, improving user retention, promoting new services, and strengthening brand recall across these platforms.
Revenue by Business Segment
| Segment | Q1 FY27 Revenue |
|---|---|
| Blinkit | ₹15,664 crore |
| Zomato Food Delivery | ₹3,100 crore |
| Hyperpure | ₹1,034 crore |
| District | ₹318 crore |
Blinkit’s rapid expansion continues to justify significant brand and customer acquisition spending as competition in the quick-commerce segment intensifies.
Blinkit Expansion Drives Brand Investments
The quarter saw Blinkit continue its aggressive expansion strategy, adding 200 new dark stores and expanding its network to 1,544 locations.
Marketing expenditure plays a crucial role in supporting:
- Customer acquisition in new markets.
- Higher order frequency.
- Brand awareness.
- Product launches and promotional campaigns.
The company has been investing across digital, television, outdoor, and performance marketing channels to strengthen its competitive position.
Growth Comes Alongside Improving Profitability
Despite maintaining elevated advertising investments, Eternal reported stronger profitability during the quarter.
Other major expense categories included:
- Material costs of ₹12,031 crore.
- Delivery expenses of ₹3,150 crore.
- Employee benefits of ₹1,068 crore.
The combination of rapid revenue growth and improving operating leverage enabled the company to absorb higher marketing and expansion costs while remaining profitable.
Major Expense Categories
| Expense | Amount |
|---|---|
| Material Costs | ₹12,031 crore |
| Delivery Expenses | ₹3,150 crore |
| Employee Benefits | ₹1,068 crore |
| Advertising & Sales Promotion | ₹945 crore |
Competition Keeps Marketing Intensity High
Eternal continues to face strong competition across both food delivery and quick commerce.
Its major rivals include:
- Swiggy in food delivery and instant commerce.
- Zepto in quick commerce.
- Flipkart Minutes and other emerging rapid-delivery platforms.
As companies compete on customer acquisition, delivery speed, and service quality, marketing expenditure is expected to remain a key component of growth strategies across the sector.
Looking Ahead
Eternal’s ₹945 crore advertising spend in Q1 FY27 highlights the company’s continued willingness to invest heavily in brand building and customer acquisition even as it delivers stronger financial performance. With Blinkit leading revenue growth and Zomato maintaining steady momentum in food delivery, marketing remains central to the company’s strategy of expanding market share across multiple consumer businesses.
Looking ahead, investors will watch whether Eternal can sustain rapid revenue growth while gradually improving marketing efficiency. As competition in India’s quick-commerce and food delivery markets remains intense, balancing customer acquisition costs with long-term profitability will be a key determinant of the company’s future performance.
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