Blinkit's switch to inventory ownership to boost margins, expand assortment

Blinkit plans to adopt an inventory ownership model in the next two to three quarters, aiming to improve margins and expand its product assortment, as revealed in its Q1 FY26 results

Blinkit, the quick commerce platform, will transition to an inventory ownership model in the next two to three quarters. Eternal, the parent company of Blinkit, shared details of this move as part of its first-quarter FY26 results in a letter to shareholders.

 

The company said this move will help improve margins and facilitate expansion of its product assortment.

 

"Our teams are well prepared for this transition, and we expect to start working with brands directly without any disruption to the business. Control over inventory gives us more leverage on margins in the business, and it also allows us to push harder and faster on assortment expansion," said Akshant Goyal, the chief financial officer of the company. He added that the company expects to see about one percentage point margin expansion over time as a result of this transition. 

 

In the first quarter of FY26, about 3 per cent of the net order value (NOV) was already tied to its inventory, which explains how quick commerce revenue grew faster than NOV at 155 per cent year-on-year (YoY) and 40 per cent quarter-on-quarter. "We expect this share to increase sharply in the next quarter," Goyal added. Notably, in Q1 FY26, while Blinkit's revenue grew 155 per cent YoY to ₹2,400 crore, its NOV rose 127 per cent YoY to ₹9,203 crore.

 

Regarding the impact of the transition on the company's financials, the shareholders' letter noted that, going forward, quick commerce revenue will become very similar to NOV, leading to a rise in revenue. It added that the net working capital (NWC) in the quick commerce business will increase as a result of owning inventory.

 

However, the company noted that the revenue from its business-to-business (B2B) supplies vertical, Hyperpure, will decrease due to the downsizing of its non-restaurant business. "As a result of this transition, we will also see a shrinkage in Hyperpure’s non-restaurant business, as most of the B2B buyers in that business were sellers on our quick commerce platform," the letter noted.