Eternal Ltd. share price target

The company delivered a healthy operational performance during the quarter, driven by sustained momentum in quick commerce, gradual recovery in food delivery, and continued expansion across geographies. The company continues to witness strong customer acquisition and engagement trends, supported by rapid dark-store additions, broader assortment availability, and deeper penetration beyond key metros. While competitive intensity in quick commerce remains elevated, management continues to...

Quick commerce (QC) NOV growth and margin delivery both beat consensus estimates, with improving outlook for Q1FY27. We think an inflationary environment from mid-May’26 is likely to boost growth rates even further.

Eternal reported a steady performance in Q4FY26 with B2C NOV growing by ~54% y/y, largely led by ~95% y/y growth in Blinkit (~8.2% q/q, broadly in line with our estimate) and strong ~18.8% y/y growth in FD (vs.
expectation of ~16-18%).

The recent price correction has significantly enhanced the risk-reward profile, offering an attractive valuation. The long-term outlook remains strong. Therefore, we continue to maintain our BUY rating on the stock

Eternal reported 4QFY26 net revenue of INR172b, up 6% QoQ/196% YoY, above our estimate of 0.3% QoQ/181% YoY growth.

Quick commerce (QC) profitability improvement was significantly ahead of estimate (adj. EBITDA INR 40mn vs. consensus INR -1.3bn). We think this was aided by the move to inventory model.

Eternal reported 3QFY26 net revenue of INR163b, up 20.7% QoQ, above our estimate of 11.8% QoQ growth. Food delivery (FD) NOV came in at INR98.4b, above our est. of INR94.2b. Blinkit NOV came in at INR133b (up 120% YoY) vs. our est. of INR133.6b.

Eternal Limited delivered a strong result driven by strong execution in quick commerce business, a recovery in food delivery segment, and improved efficiency across its restaurant supply operations. EBITDA margins are expected to strengthen over time, aided by operational leverage, and effective cost control. The quick...

Eternal reported better-than-expected revenue growth, aided by strong NOV growth in Quick Commerce (QCom, 137% YoY) and accelerated shift to owned inventory model.

we maintain our HOLD rating on the stock

Eternal reported a 2QFY26 net revenue of INR135b (+90% QoQ/183% YoY). This high growth is mainly on account of shift to inventory ownership in quick commerce (Q-commerce), where revenue now also includes the full monetary value of goods sold as per Ind AS (and not just the marketplace commission).

Amazon Now, the quick commerce (QCom) business of Amazon, has now expanded to Mumbai, after Bengaluru and Delhi.

Eternal Limited is poised for long-term growth and improved profitability, driven by its strong market position and growth prospects in the quick commerce business (QCB). The company's focus on inventory ownership and margin improvement is expected to drive profitability. Although the industry outlook remains competitive, the company's strategy and long-term growth objectives, along with its strong management team, are expected to drive future growth. However, the stock's significant run-up in price and rich valuations limit the upside potential from current...

Blinkit’s adj. EBITDA margin (% of NOV) improved ~60bps QoQ in Q1FY26 despite adding 243 stores (ISec est.: 220) with steady take rate and contribution margin.

We believe competitive intensity is likely to see near-term volatility. Hence, we maintain our HOLD rating on the stock.

Eternal reported 1QFY26 revenue of INR72b, up 70% YoY, above our estimated growth of 62% YoY. Growth was led by Blinkit as its gross order value (GOV) increased 26% QoQ/140% YoY.

Exceeding estimates, Eternal’s Q4 saw strong execution in Blinkit, with the GOV growing ~20.8% q/q, 134% y/y, and the contribution margin expanding ~10bps q/q, which is encouraging, given heightened competition and aggressive dark store addition (~294 added; ~40% of the total 1,301 stores added in the last two quarters).

Adjusted EBITDA profitability in Q4FY25 was above our estimates (act. INR 0.7bn vs. est. INR 0.1bn). This was achieved by containing quick commerce (QC) losses despite adding 294 dark stores and 1mn sq.ft. warehousing space in a quarter with seasonally lower AOV (-5.9% QoQ).

We believe near-term profitability is likely to impact margins owing to increased competition. Hence, we downgrade the stock to HOLD.

Eternal delivered broadly inline operating performance in Q4. Revenue grew 7.9% QoQ, better than our estimate, led by Quick Commerce (QC) and Hyperpure. Food Delivery GOV saw a decline of 1.4% QoQ, due to persistent sluggishness in the demand environment, temporary shortage of delivery partners owing to high demand in QC, and increased competition from packaged food delivery in QC.