Eternal Share Price Surges 4% Following Q4 Earnings Release

Eternal Share Price Surges on Q4 Results

Eternal, the parent company of food delivery platform Zomato and quick commerce platform Blinkit, reported a robust 346% year-on-year (YoY) jump in net profit to ₹174 crore for the fourth quarter of FY26. This led to a significant surge in the company's share price, with Eternal shares rallying as much as 4.51% to ₹265.25 apiece on the BSE in early trade on Wednesday.

The company's consolidated operating revenue growth was a notable 196% YoY at ₹17,292 crore during the March quarter. Blinkit's net order value (NOV) surged 95% YoY to ₹14,386 crore, driven by rapid unit expansion and accelerated store rollout. The service swung back to a positive adjusted EBITDA of ₹37 crore from a negative EBITDA of ₹178 crore in the year-ago period.

Eternal's food delivery business, led by Zomato, reported revenue growth of 33% at ₹2,737 crore. The NOV of the food delivery arm increased 19% YoY to ₹9,757 crore. The company expects growth to continue trending toward its long-term expectation of 20%+ YoY NOV growth, with margins remaining in the 5-6% range for Zomato. Blinkit's NOV growth compound annual growth rate (CAGR) is expected to be north of 60% in the next three years.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Q4 Results Comparison

Brokerage firm Nuvama Institutional Equities tweaked FY27E and FY28E EBITDA estimates by -10% factoring in higher competition in the quick commerce space. It expects Zomato's path to profitability could be quicker than anticipated with improving contribution margins. Nuvama Equities maintained a 'Buy' rating, but cut Eternal share price target to ₹380 apiece from ₹430 earlier.

Motilal Oswal Financial Services noted that Eternal's food delivery business is stable, and Blinkit offers a generational opportunity to participate in the disruption of industries such as retail, grocery, and e-commerce. The firm reiterated a 'Buy' rating on Eternal stock, with a target price of ₹340 per share.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Equirus Securities maintain its 'Long' call on Eternal shares, and slashed multiples-driven SOTP-based September 2027 target price to ₹370 from March 2027 target price of ₹390 earlier. It values the food delivery business at 35x Sep'28 EV/EBITDA, Blinkit at 50x Sep'28 EV/EBITDA, diningout at 1x Sep'28 EV/NOV, and Hyperpure at 0.5x Sep'28 EV/Sales.

Eternal share price has gained 11% in one month, but the stock has fallen 9% on a year-to-date (YTD) basis. The stock has rallied 12% in one year and has surged 34% over the past two years. Eternal share price has delivered multibagger returns of 300% in three years. At 9:18 AM, Eternal share price was trading 2.52% higher at ₹260.20 apiece on the BSE.