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Eternal to hit Rs 505? Why brokerages are turning bullish on Zomato parent after Q4 results
CLSA was the most bullish, raising its target price to Rs 505 from Rs 501 and saying confidence in Blinkit’s business model has strengthened.
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Eternal to hit Rs 505? Why brokerages are turning bullish on Zomato parent after Q4 results
Written By: Abhay Shukla
Updated: Wed, Apr 29, 2026
11:00 AM IST
11:00 AM IST
New Delhi, ZeeBiz WebDesk
Shares of Eternal, the food delivery and quick commerce company that owns the Zomato and Blinkit brands, rose as much as 4.87 per cent to Rs 265.40 apiece in early trade on Wednesday, April 29, after the company reported strong March quarter results.
However, the stock later gave up most of its early gains. At around 11 AM, Eternal shares were trading at Rs 256.10 on the NSE, still up Rs 2.30, or 0.91 per cent, from the previous close.
Q4FY26 earnings highlights
Eternal reported a 346 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 174 crore for the March quarter, compared with Rs 39 crore in the same period last year.
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Revenue from operations surged 196 per cent YoY to Rs 17,292 crore in Q4FY26, against Rs 5,833 crore a year ago, according to the company’s exchange filing.
Earnings per share (EPS) improved to Rs 0.19 per share from Rs 0.04 in the corresponding quarter last year.
The strong revenue growth was largely driven by Blinkit, the company’s quick commerce business, which continued to expand despite rising competition in the segment.
Blinkit drives the earnings show
Blinkit’s revenue from operations jumped 674 per cent YoY to Rs 13,232 crore in the March quarter, compared with Rs 1,709 crore in the same period last year.
On a sequential basis, Blinkit revenue rose 7.9 per cent from Rs 12,256 crore in the December quarter.
The online food ordering and delivery business posted a 33 per cent rise in revenue to Rs 2,737 crore, up from Rs 2,054 crore a year ago.
The ‘going out’ or District segment reported a 20 per cent increase in revenue to Rs 277 crore, while income from segments rose sharply to Rs 68 crore from Rs 1 crore.
However, Hyperpure, the company’s B2B supplies business, saw revenue decline 46 per cent to Rs 978 crore from Rs 1,840 crore in the year-ago quarter.
Margins improve, management stays confident
Eternal said its adjusted EBITDA margin improved to 5.5 per cent in the January-March quarter. Absolute adjusted EBITDA stood at Rs 532 crore, marking a 24 per cent YoY growth.
Management maintained that food delivery growth remains on track for 20 per cent-plus medium-term expansion, while quick commerce is expected to deliver more than 60 per cent NOV CAGR over the next three years.
The company also guided for $1 billion consolidated adjusted EBITDA by FY29.
Brokerages said Blinkit’s profitability improvement and customer additions remained the key positives despite mixed headline numbers.
Brokerages largely positive, CLSA most bullish
- Morgan Stanley maintained ‘Overweight’ but cut its target price to Rs 347 from Rs 420, saying quick commerce profitability and customer additions were impressive and risk-reward remains favourable.
- Jefferies retained ‘Buy’ and lowered its target to Rs 400 from Rs 480, highlighting strong quick commerce profitability despite intense competition.
- Nomura maintained ‘Buy’ with a revised target of Rs 340 from Rs 380.
- Citi kept its ‘Buy’ rating and cut target price to Rs 360 from Rs 400, saying Eternal is strengthening its leadership in quick commerce.
- Goldman Sachs also retained ‘Buy’ with a target of Rs 340, noting Blinkit’s growth and margin expansion remain strong near-term drivers.
- CLSA was the most bullish, raising its target price to Rs 505 from Rs 501 and saying confidence in Blinkit’s business model has strengthened.
- Macquarie remained cautious with an ‘Underperform’ rating and target price of Rs 200, citing sequential growth moderation.
- HSBC maintained ‘Buy’ with a target of Rs 300, saying medium-term growth guidance was significantly positive despite near-term volatility.
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Abhay Shukla
Abhay Shukla
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