Eternal Share Price Declines 3.5% Ahead of Q4 Earnings, Brokerages Weigh In on Key Metrics.

Eternal Ltd Shares Decline Amid Execution Risks Concerns Ahead of Q4FY26 Results

Shares of Eternal Ltd declined 3.5% on April 28, hitting an intraday low of ₹246.50 after opening at ₹255.65, as investors turned cautious ahead of its Q4FY26 results. The weakness comes despite expectations of a sharp earnings surge, suggesting markets are increasingly focused on execution risks in the quick commerce segment rather than just growth.

Eternal stock has fallen 5% in a week and 7% over three months, though it has gained 6% in one month and 9% over the past year, reflecting a mix of long-term optimism and near-term caution. The upcoming results will be closely tracked for clarity on profitability, operating leverage, and whether aggressive expansion can translate into sustainable margins.

Brokerage Expectations

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Brokerages broadly expect a sharp surge in revenue and profit in the March quarter, with estimates pointing to 180-200% year-over-year (YoY) growth in revenue and up to 430% jump in net profit, driven by Blinkit's scale-up and improving operating leverage, while food delivery remains steady.

ICICI Securities expects overall traction to remain healthy, with GOV seen growing 20% YoY and NOV 17.2% YoY, translating into adjusted EBITDA of ₹530 crore and margins of 4.5% of GOV. The brokerage emphasized Blinkit's outsized contribution, stating that Blinkit's GOV could grow 106.1% YoY and NOV could grow 100.50% YoY, with adjusted EBITDA at ₹44.30 crore and an adjusted EBITDA margin (per cent of GOV) of 0.2%.

Motilal Oswal Financial Services (MOSL) expects Blinkit's EBITDA margin to remain close to -0.2% of NOV, though other estimates suggest a marginal positive contribution, indicating a sharp improvement from earlier losses. The brokerage has a target price of ₹330, while BNP Paribas has set a target price of ₹380, reflecting confidence in long-term growth even as near-term competition intensifies.

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Key Triggers Post Results

Hyperpure is also expected to support topline growth, but key triggers post results will include Blinkit's profitability trajectory, competitive intensity, and margin sustainability.