Eternal’s share price moved almost 5% up in today’s trade to hit an intra-day high of Rs 265.40 after the company reported its quarterly earnings. Some brokerages have cut the target; however, most have maintained their ‘Buy’ ratings. Moderating growth trends in the quick commerce space is a key monitorable.
Here is a quick look at the investment rationale driving most brokerage views –
Nomura on Eternal (Zomato)
Nomura has slashed the target price on Eternal (Zomato) to Rs 340 from Rs 380, implying an upside of over 34% from the current market price. The brokerage has, however, maintained its ‘Buy’ rating on the stock.
Eternal’s Food Delivery business or Zomato’s net order value (NOV) declined -1% QoQ and grew 19% year-over-year (YoY) in Q4 FY26, broadly in line with the brokerage’s expectation.
The company’s growth (over the last few quarters) continued to be driven by interventions to attract value-conscious buyers (by offering free delivery on Rs 99 for Gold members since Q2 FY26).
“Zomato’s medium- to longer-term target of 20% NOV growth rests on modest market share gains and continued execution around improving affordability and offerings to customers,” said Nomura.
Motilal Oswal on Eternal
Eternal’s Food Delivery business is stable, and Blinkit offers a generational opportunity to participate in the disruption of industries such as retail, grocery, and e-commerce.
“We largely keep our estimates unchanged. While Quick Commerce growth is moderating at 70% in FY27, we see this as a normalisation, with improving unit economics and a clearer path to profitability ($1 billion EBITDA by FY29),” said Motilal Oswal.
However, Motilal Oswal Financial Services retained its ‘Buy’ rating and the target price of Rs 340 on Eternal, implying a 34% upside from the current price.
JM Financial on Eternal
Eternal’s Q4FY26 results undershot the brokerage’s expectation mainly on account of a miss on Blinkit’s NOV growth (8% growth QoQ versus JM Financial’s estimates of 11%).
“Even so, management commentary on meaningful improvement in QoQ trends in the business in Q1 FY27, along with medium-term guidance of over 60% NOV CAGR over the next three years, is comforting,” said JM Financial.
The medium-term goalpost of $1 billion in adjusted EBITDA (consolidated) by FY29, which the analysts at JM Financial find quite exciting—a number that was broadly built in estimates, but barely appreciated by investors till now due to lack of management guidance.
“We believe such clear goalposts could anchor expectations going ahead, and any directional delivery on these targets — particularly Blinkit’s growth and profitability trajectory — would drive stock performance,” said the brokerage house.
Overall, the brokerage remained constructive on Eternal as it maintained its ‘Buy’ rating and kept the target price unchanged at Rs 400. The price target looks at an upside of 58% from the current market price.
| Metric | Q4 FY26 (Current) | Future Target (FY29) | Catalyst |
| Consolidated Profit | Rs 174 Crore | Scale transition | 196% revenue surge |
| Blinkit NOV Growth | 8% QoQ | 60% CAGR | Disrupting grocery & retail |
| Adj. EBITDA | Growing Trend | $1 Billion | Management’s “Clear goalpost” |
| Food Delivery | 19% YoY Growth | 20% NOV growth | Gold member interventions |
Eternal share price performance
The share price of Eternal has changed a little in the last five trading sessions. The stock has given a return of 12% in the last one month. However, the stock has declined 22% in the past six months. Eternal’s share price has risen 11% over the previous one year.
Eternal Q4FY26
The company reported a 71% YoY jump in profit after tax at Rs 174 crore in the fourth quarter of the financial year 2025-26, compared to Rs 39 crore recorded in the same period a year ago. It had reported a net profit of Rs 102 crore in Q3 FY26.
The firm’s revenue from operations skyrocketed 196% YoY to Rs 17,292 crore in Q4, up from Rs 5,833 crore a year ago. It had reported a revenue of Rs 16,315 crore in the previous quarter.
For the whole of FY26, the net profit stood at Rs 366 crore, up 31% compared to Rs 527 crore in the previous fiscal.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.
