Brokerages offered a mixed assessment of Eternal’s December-quarter performance, flagging near-term margin risks despite stronger-than-expected growth and profitability, as competitive intensity in quick commerce and food delivery continues to rise.
The food delivery and quick commerce firm, which owns Zomato and Blinkit, reported a consolidated net profit of Rs 102 crore for the October–December quarter, up 73% year-on-year. Revenue from operations surged 202% to Rs 16,315 crore, while total expenses rose 198% to Rs 16,493 crore.
Eternal’s shares on Thursday closed down 2.61% at Rs 276 on the BSE.
Brokerages said the headline numbers were ahead of expectations, driven by strong growth across businesses and improving profitability in Blinkit. Motilal Oswal noted that revenue growth exceeded its estimates, with Zomato’s net order value and Blinkit’s adjusted Ebitda performance coming in stronger than anticipated.
Intense Competitive Risks
However, it cautioned that the recent improvement in Blinkit’s profitability may prove temporary as competition in quick commerce intensifies.
The brokerage said it expects elevated discounting and higher investments across quick commerce and going-out segments to weigh on margins in the near term, adding that the sector could be heading into a more aggressive phase marked by lower order values and sharper pricing.
Emkay Global also said the quarter surprised positively on profitability but flagged management’s willingness to sacrifice margins to defend market share. It said the company’s commentary suggests a renewed focus on growth during a “land-grab” phase, even if it slows margin expansion over the next few years.
According to the brokerage, Blinkit’s performance reinforces the view that quick commerce can become profitable at scale, though competitive pressure is likely to intensify.
Elara Capital Outlook
Elara Capital said the company’s growth in both food delivery and quick commerce came in slightly ahead of expectations.
JM Financial said the management change is unlikely to disrupt execution, describing Blinkit as the company’s primary growth engine. It highlighted that the unit achieving adjusted Ebitda breakeven ahead of expectations marks an important milestone, even as competition remains intense and expansion continues.
Axis Securities said Eternal has built a resilient business with multiple growth drivers, but cautioned that rising competition and rapid store additions could keep profitability under pressure in the near term.