Eternal shares increased by up to 5 percent during early trading on the National Stock Exchange (NSE) on Wednesday, following the release of its results for the March quarter. The stock reached ₹254.22 by 9:47 am, peaking at ₹265.40, compared to the previous close of ₹253.07.
The company, known for owning Zomato and Blinkit, reported consolidated net profit soaring to ₹174 crore for the March quarter, a significant increase from ₹39 crore in the same period the previous year. Consolidated revenue from operations surged by 196 percent year-on-year, totaling ₹17,292 crore, up from ₹5,833 crore in the corresponding quarter last year, indicating robust growth across various segments.
Morgan Stanley maintained an overweight rating and slightly raised its target price from ₹345 to ₹347, emphasizing a focus on profitable growth. The firm remarked that macroeconomic impacts have thus far been minimal, with management projecting a net order value growth of over 60 percent year-on-year for quick commerce, alongside an adjusted EBITDA forecast of $1 billion by FY29. Morgan Stanley noted that while the immediate market reaction to Q4 results may vary, underlying metrics remain solid, with quick commerce growth expected to bolster estimates.
Relevant information presented in a separate overview includes:
- Eternal shares rose by 5% after Q4 results, reaching an intraday high of ₹265.40.
- Q4 net profit increased by 346% year-on-year to ₹174 crore, with revenue rising by 196%.
- Brokerages are optimistic about strong growth prospects in food delivery and quick commerce.
- Competitive pressure and moderating quick commerce growth are noted as near-term risks.
Investec also affirmed a buy rating, setting a target price of ₹375, citing improved visibility for future growth. They acknowledged ongoing strength in food delivery and quick commerce, while mentioning the stability of District and Hyperpure businesses, supported by healthy cash reserves. Nonetheless, Investec highlighted potential near-term volatility resulting from increased competition.
UBS retained a buy rating with a target price of ₹310, describing Q4FY26 performance as stable. The firm observed that food delivery growth is nearing 20 percent, while quick commerce growth has slightly attenuated, yet profitability is on the rise amid competitive challenges. They noted that the company is set on a clear growth trajectory in the medium term.
Conversely, Macquarie kept an underperform rating with a target price of ₹200, citing concerns regarding slowing sequential growth despite positive outlooks. They flagged potential risks affecting throughput improvements and cautioned that expansion of dark stores may decelerate. Additionally, Macquarie warned that intensified competition could undermine unit economics at the micro-market level.
HDFC Securities commented on the ongoing recovery in food delivery, noting net order value grew 18.8 percent year-on-year to ₹97.6 billion, bolstered by enhanced affordability initiatives. The brokerage reported stable margins at 5.5 percent quarter-on-quarter, as operational efficiencies mitigated the shift toward lower-value orders. They expect food delivery growth to align with long-term expectations of over 20 percent year-on-year, with margins maintaining in the 5–6 percent range.
While Blinkit saw moderated net order value growth quarter-on-quarter due to seasonal factors, it still achieved over 95 percent year-on-year growth. Improved profitability was recorded, with positive adjusted EBITDA margins supported by resilient unit economics despite increasing competition. Consolidated adjusted EBITDA rose by 160 percent year-on-year, prompting the brokerage to revise estimates upwards, maintaining a buy rating with a target price of ₹340.
Motilal Oswal characterized the food delivery business as stable, viewing Blinkit as a significant long-term opportunity within retail disruption, grocery, and e-commerce. They forecast normalizing quick commerce growth alongside improved unit economics, aiming for a clearer path to profitability, including a target of $1 billion in EBITDA by FY29. They project gradual margin expansion driven by operational leverage and store maturity, reaffirming a buy rating with a target price of ₹340, indicating substantial upside from current valuations.
Published on April 29, 2026.
