Eternal shares share surged 4% to the day’s high of Rs 296.15 after the company’s June quarter (Q1FY27) results were declared. Whether it is ordering food through Zomato, getting groceries delivered in minutes via Blinkit, or using District to discover affordable dining options, the company continues to stay in the spotlight for multiple reasons.
The latest quarterly earnings have again brought the company into the spotlight. Along with the financial results, brokerage houses have also shared their latest views on the stock, making it one of the key stocks to watch in today’s trading session.
Eternal: Revenue growth remains strong across businesses
According to the company’s quarterly results, Eternal reported revenue of Rs 20,210 crore, up 17% sequentially. Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at Rs 590 crore, compared with Rs 120 crore in the same quarter last year, while profit after tax (PAT) came in at Rs 90 crore.
| Particulars | Q1FY27 Performance |
| Total Revenue | Rs 20,210 crore |
| Revenue Growth | Up 17% quarter-on-quarter |
| EBITDA | Rs 590 crore |
| EBITDA (Q1FY26) | Rs 120 crore |
| Profit After Tax (PAT) | Rs 90 crore |
| Food Delivery Revenue | Rs 3,100 crore |
| Food Delivery Revenue Growth | Up 37% year-on-year |
| Monthly Transacting Users (Food Delivery) | 27.2 million |
| MTU Growth | Up 19% year-on-year |
Blinkit continues to drive growth
Quick commerce remained the biggest growth driver during the quarter.
Blinkit’s revenue increased 18% quarter-on-quarter, while its gross order value grew 86% year-on-year to Rs 17,130 crore. The business also recorded 331 million orders, up 87% from a year ago. Blinkit’s monthly transacting users reached 31.8 million.
The company also expanded its network by adding 200 new stores, taking the total store count to 2,443 by the end of June.
Eternal: Brokerage views
After the q1 result, brokerage houses have come out with their latest views on the stock. Let’s take a look at their recommendations.
- Motilal Oswal on Eternal: Brokerage retains ‘Buy’, sees 41% upside despite intense competition
Domestic brokerage house Motilal Oswal has retained its ‘Buy’ rating on Eternal. The brokerage has maintained a target price of Rs 400, which indicates an upside potential of around 41% from the current market price.
Motilal Oswal noted, “Competitive intensity in quick commerce remains high.” However, it also added that management believes the competitive environment has now become more stable. The report stated, “Q1 experienced ‘peak intensity’ to date, although competition has now become predictable.”
As per the brokerage report, Blinkit continues to improve its profitability while expanding its network.
The brokerage also pointed out that Blinkit’s capital expenditure remained higher than expected during the quarter as the company continued investing in new warehouses and store expansion.
The brokerage noted, “Food delivery recovery remains steady despite new competition.”
Motilal Oswal added that Blinkit’s long-term growth opportunity, along with gradual improvement in margins and operating leverage, continues to support its investment view on Eternal.
- Nomura on Eternal: Brokerage raises target price after Q1 results, keeps ‘Buy’ rating
Global brokerage house Nomura retained its Buy rating on Eternal following the Q1 result. Furthermore, the brokerage has raised its target price to Rs 350 from Rs 340. This translates to an upside potential of around 23% from the current market price.
The brokerage house in its report noted that the biggest highlight this quarter was the continued growth in Blinkit – the company’s quick commerce business.
Furthermore, the report added that quick commerce continues to improve its profitability even as it expands rapidly.
Nomura report added, “Competitive intensity peaked in 1QFY27 and has become predictable.”
It added that Eternal believes aggressive discount-led strategies adopted by rivals may not be sustainable over the long term.
The company is also more positive towards its profitability outlook. The company now expects its long-term Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) margin to reach 6% of Net Order Value, compared with its earlier guidance of 5-6%.
The brokerage also highlighted the company plans to improve efficiency through larger stores, better inventory management and lower working capital requirements. It expects Blinkit’s Net Order Value to continue growing strongly over the next two financial years.
Apart from this, the brokerage house also highlighted that slower improvement in quick commerce profitability or weaker growth in the food delivery business remain key risks to its outlook.
Disclaimer: The financial figures, brokerage ratings, and target prices mentioned in this article are for informational and educational purposes only and do not constitute an offer, solicitation, or personal investment advice. Stock market investments are subject to market risks, and past performance or analyst projections are not guarantees of future returns. Readers should conduct their own due diligence and consult a SEBI-registered financial advisor before making any investment decisions. This disclaimer has been generated using AI to support user well-being and responsible content consumption.
