Eternal shares hit record high after Q1 results; Blinkit drives growth despite profit slump

Shares of Eternal Ltd. (formerly Zomato) jumped over 11 per cent to Rs 311.25 on Tuesday, July 22, hitting a fresh all-time high, despite a sharp fall in profits. The stock rallied after the company reported its Q1 FY26 results, with strong revenue growth driven by its quick commerce unit Blinkit.

The company’s net profit fell 90 per cent year-on-year to Rs 25 crore, compared to Rs 253 crore in the same quarter last year. However, revenue surged 70 per cent year-on-year to Rs 7,167 crore, with Blinkit contributing Rs 2,400 crore, even more than the Rs 2,261 crore generated by the food delivery business.

Despite a drop in consolidated EBITDA to Rs 115 crore, several top brokerages remain bullish on Eternal:

Jefferies upgraded Eternal to Buy and raised the target price to Rs 400, noting improved margin outlook and easing competition.

Goldman Sachs maintained Buy, raising the target to Rs 340.

JP Morgan kept an Overweight rating, increasing the target to Rs 310.

CLSA, Morgan Stanley, Citi, Nomura, and Bernstein also raised their targets, ranging from Rs 300 to Rs 385, while retaining positive views.

Macquarie, however, maintained an Underperform call, with a target of Rs 150, citing concerns over Blinkit’s valuation and sustainability of quick commerce growth.

Eternal’s strong top-line performance—especially from Blinkit—has reassured investors even as net profit declined. Analysts say Blinkit's growth and improving margins could help the company scale profitability in the coming quarters.