Blinkit’s shift to inventory-led model expected to boost margins and fast-track profitability

Blinkit, owned by Eternal Ltd., is making a strategic shift from its traditional marketplace model to an inventory-led approach.

This is an operational change that analysts at JM Financial believe will significantly enhance the company’s margins and accelerate its path to profitability.

As part of this transition, effective from September 1, Blinkit will begin selling directly to consumers while managing its own inventory, rather than depending on third-party sellers. The company has reportedly communicated the new model to its partners in preparation for the rollout.

This change comes after Eternal Ltd. capped its foreign ownership at 49.5%, aligning itself with regulatory requirements to run an inventory-led e-commerce business.

“We believe the business model change will enable Blinkit to expand its category/merchandise offerings and reduce dependence on third-party sellers (wherever applicable),” JM Financial analysts stated in a note. The analysts also highlighted that the shift could reduce compliance and legal expenses.

They estimate that Blinkit’s EBITDA margin, as a percentage of gross order value (GOV), could improve by 50 to 110 basis points. This is a notable improvement given the company’s sustainable margin target of 4–5%. The benefits of the new model are expected to kick in right after implementation, with Blinkit projected to achieve EBITDA break-even by the December quarter - earlier than market expectations.

JM Financial forecasts Blinkit’s GOV to reach ₹57,900 crore in FY26, with an operating margin of 0.5%, improving to 2% in FY27.

For comparison, Zomato’s food delivery segment is expected to generate a GOV of ₹45,400 crore in FY26 with a stronger operating margin of 4.7%.