Eternal Shares Surge 14% to Record High on Strong Q1FY26 Results
Shares of Eternal, the parent company of Zomato and Blinkit, soared nearly 14% on Tuesday, hitting a 52-week high of ₹311.60 on the Bombay Stock Exchange. The sharp rally was driven by the company’s robust first-quarter results for FY26, showcasing growth across all verticals, especially in quick commerce.
Key Highlights from Q1FY26 Results:
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Consolidated adjusted revenue: ₹7,563 crore, up 67% YoY and 22% QoQ.
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Quick commerce Net Order Value (NOV): ₹9,203 crore, up 127% YoY — surpassing food delivery for the first time.
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Blinkit Gross Order Value: ₹11,820 crore.
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Profitability: Margins improved from -2.4% of NOV in Q4FY25 to -1.8% in Q1FY26, despite continued investments and seasonal costs.
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Going-out vertical (dining + events): Now a ₹8,000 crore annualised business, growing at 35% YoY.
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Food delivery contribution margin: Slight dip from 10.3% to 9.9%, but customer engagement is picking up again.
Brokerages React — Mostly Positive:
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Jefferies: Upgraded from Hold to Buy, target raised from ₹250 to ₹400, citing faster-than-expected path to profitability in quick commerce.
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Nomura: Maintained Buy, raised target to ₹300 from ₹280.
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Nuvama Institutional Equities: Revised target to ₹320, highlighting benefits from the inventory-led model and maturing dark stores.
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Motilal Oswal and ICICI Securities: Targets raised to ₹310 and ₹315, respectively.
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Macquarie: Remains cautious, retaining Underperform with a target of ₹150, citing high competition and profitability risks.
Management Outlook:
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Targeting 15% NOV growth for FY26.
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Confident of sustaining momentum across food delivery, quick commerce, and going-out verticals for at least the next two years.
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Focus remains on operating leverage, improving margins, and expanding customer base.
Verdict: Buy, Hold or Sell?
Analyst sentiment is divided:
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Bulls see a multi-year growth story with improved execution and margin expansion.
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Bears warn of competition, scaling risks, and profit sustainability.
However, the stock crossing ₹300 indicates that, for now, the market is leaning bullish.
