Following the December quarter results, shares of Eternal, the parent company of Zomato and Blinkit, drew heightened attention in the market as several brokerage houses revised their target prices upward, citing improved profitability and momentum in quick commerce.
On Wednesday, after the announcement of the December quarter results, Eternal shares saw b buying interest and rose by nearly 6 percent during intraday trade to move above Rs 300 per share. Profit booking at higher levels later trimmed gains. Around 10 am, the stock was trading at Rs 287.05 per share on the BSE, up 1.29 percent. During the same period, the Sensex was higher by 0.93 percent.
Brokerage assessments following the results indicate that quick commerce and food delivery remain central to the company’s operating performance. In the third quarter of FY26, Eternal’s quick commerce business emerged as a key contributor, with Blinkit strengthening its presence in the instant delivery segment. Brokerages noted that while food delivery remains stable, quick commerce is expected to be a significant growth driver in the coming years.
Motilal Oswal maintained its BUY rating on Eternal while revising its target price to Rs 360 from Rs 420 earlier, implying upside of more than 27 percent from current levels. The brokerage said Eternal’s food delivery business remains stable and Blinkit positions the company to benefit from changes in retail and e-commerce consumption. However, Motilal Oswal cut its FY27 and FY28 estimates by about 15 percent, citing rising competition, expansion of dark stores, and higher branding and marketing expenditure in instant commerce. The brokerage added that leadership transitions appear balanced, though a clear division of responsibilities between management and the board is yet to fully emerge, potentially adding some uncertainty without materially affecting day-to-day operations.
Nuvama retained its BUY recommendation on Eternal and raised its target price to Rs 430 from Rs 400, indicating potential upside of up to 52 percent. The brokerage said performance in Blinkit and Hyperpure was better than expected, with both segments achieving cost balance at the adjusted operations profit level earlier than projected. On the back of improved profitability expectations, Nuvama raised its earnings per share estimates for FY26 and FY27 by 41 percent and 2.3 percent, respectively. The brokerage said Deepinder Goyal is expected to continue handling key responsibilities even without formally holding the chief executive officer position.
Nomura also maintained a BUY rating on Eternal and increased its target price to Rs 380 from Rs 370, suggesting potential upside of over 34 percent. The brokerage highlighted that early achievement of cost balance in Blinkit’s quick commerce business was a key positive, though it noted that Blinkit’s net order value of Rs 13,300 crore was marginally below its estimates.
In the third quarter of FY26, Eternal reported a 72.8 percent year-on-year increase in net profit to Rs 102 crore, compared with Rs 59 crore in the corresponding quarter last year. On a quarter-on-quarter basis, net profit rose from Rs 65 crore to Rs 102 crore. Revenue for the quarter more than doubled year-on-year to Rs 16,315 crore from Rs 5,405 crore, and increased sequentially from Rs 13,590 crore in the previous quarter.
Operating profit for the quarter rose 28 percent year-on-year to Rs 364 crore, compared with Rs 224 crore in the preceding quarter, reflecting a 63 percent quarter-on-quarter increase.
The company’s cash position declined slightly due to continued investment in quick commerce and higher working capital requirements. Cash balance stood at Rs 17,820 crore in the third quarter, compared with Rs 18,314 crore in the second quarter. Brokerages indicated that the current cash position remains adequate to support the company’s ongoing growth plans.
