What puts a stock in the spotlight – a sudden price spike, a big leadership change, or a surprise turnaround in profits? In the case of tech-driven online food delivery player Eternal, it is a mix of all three.
The company is in the spotlight today not because of any single headline event, but due to two developments around its business.
First, Blinkit, Eternal’s quick commerce arm, has reported a positive adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA). Second, founder Deepinder Goyal has announced a leadership transition, stepping down as Group Chief Executive Officer to take on the role of Vice Chairman, while Blinkit head Albinder Dhindsa takes charge as the new Group Chief Executive Officer.
Following this, several brokerage houses have turned optimistic on the stock, with some seeing an upside of as much as 78% from current levels.
Let’s take a look at what brokerages such as Jefferies, Motilal Oswal, JM Financial and Nomura are saying about the stock and the rationale behind it.
Jefferies on Eternal: Sees 78% upside potential
Global brokerage Jefferies has a ‘Buy’ rating on Eternal and has set a target price of Rs 480. This implies an upside potential of nearly 78%. According to the brokerage report, Blinkit’s performance in the latest quarter stood out, especially given the competitive environment.
“Adjusted EBITDA at Rs 3.7 billion was well ahead of expectations,” Jefferies noted, adding that Eternal now has net cash of around $2 billion, even after higher capital expenditure and working capital requirements.
The brokerage highlighted that Blinkit’s quick commerce business delivered a major surprise by turning EBITDA positive at Rs 4 crore, compared to losses of Rs 100-200 crore in each of the previous four quarters. This improvement, as per the brokerage report, came despite heightened competition and was driven by supply chain efficiencies.
Jefferies also pointed out that nearly 90% of Blinkit’s net order value is now routed through the first-party model, which has added more than 50 basis points to margins, with further improvement expected over the next few quarters.
Motilal Oswal on Eternal: Sees 27% upside potential
Domestic brokerage Motilal Oswal motilal oswalhas also maintained a ‘Buy’ rating on Eternal, with a target price of Rs 360. This translates to an upside of about 27%. According to the brokerage report, while Blinkit has achieved EBITDA breakeven, this relief could be short-lived as competition in quick commerce is expected to re-accelerate.
Motilal Oswal stated, “While food delivery growth is recovering, the pace of normalisation remains gradual, and we expect the EBITDA respite in Blinkit to be short-lived as competitive intensity heats up.”
The brokerage also flagged concerns around higher discounting and investments across quick commerce and the company’s going-out business, which could weigh on profitability in the near term.
As per the brokerage report, Eternal has reduced its adjusted EBITDA estimates for the next two financial years by around 15% due to these pressures.
However, Motilal Oswal continues to see long-term value in Blinkit, calling it a generational opportunity in grocery and retail disruption, while noting that near-term volatility cannot be ruled out.
JM Financial on Eternal: Sees 41% upside potential
JM Financial has assigned a ‘Buy’ rating to Eternal with a target price of Rs 400. This indicates an upside potential of around 41%.
As per the brokerage house report, Blinkit’s adjusted EBITDA breakeven in the Q3FY26 came at least two quarters earlier than expected.
The brokerage noted that this milestone coincided with the leadership transition, which it expects to be smooth given Albinder Dhindsa’s track record of scaling Blinkit into Eternal’s primary growth engine.
As per the brokerage report, Blinkit’s net order value rose 14% quarter-on-quarter and more than doubled year-on-year, despite competitive pressure and the impact of goods and services tax rationalisation. JM Financial expects strong growth momentum to continue through financial year 2027, although it has moderated growth assumptions slightly due to aggressive store expansion plans.
Nomura on Eternal: Sees 33% upside
Another brokerage house, Nomura, has given a ‘Buy’ rating on Eternal with a revised target price of Rs 380. This translates to an upside of about 33%. The brokerage house report noted that Blinkit appears focused on profitable growth.
Nomura expects Blinkit’s net order value to grow between 92-124% year-on-year over the next two financial years, with adjusted EBITDA margins ranging from marginal losses to low single-digit positives.
Conclusion
While brokerages differ on how sustainable Blinkit’s profitability will be amid rising competition, most agree that the business has crossed an important operational milestone.
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.