Eternal shares slip over 2% after Q2 profit drop; should you buy the dip

Zomato Shares Today: Shares of Eternal Limited fell nearly 2 per cent during Friday’s session following the announcement of Q2FY26 results. The company, which operates the Zomato and Blinkit brands, reported a 63 per cent year-on-year decline in consolidated net profit to Rs 65 crore, down from Rs 176 crore in the same quarter last year.

Revenue from operations surged to Rs 13,590 crore, compared with Rs 4,799 crore a year ago, driven primarily by the quick commerce segment. Total expenses for the quarter stood at Rs 13,813 crore, up from Rs 4,783 crore in Q2FY25.

Zomato Q2FY26 highlights: Segment performance: Food delivery and quick commerce

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Zomato’s food delivery net order value (NOV) grew 14 per cent YoY, slightly up from 13 per cent in the prior quarter. Meanwhile, quick commerce NOV jumped 137 per cent YoY to Rs 11,679 crore, with adjusted revenue for the segment rising 756 per cent to Rs 9,891 crore.

Despite strong growth, Eternal warned investors that soft discretionary spending, costs associated with quick commerce expansion, and unpredictable weather may limit momentum, forecasting only a gradual rise in NOV in the near term.

Brokerages on Eternal; should you buy, sell or hold the stock

Brokerages maintained a buy rating for the stock, citing dominance in food delivery and Q-commerce and the long-term potential of Blinkit:

Motilal Oswal: Target price Rs 410, potential upside 17 per cent.

Citi: Maintain Buy, target raised to Rs 440.

HSBC: Maintain Buy, target Rs 390, citing QC growth and improved margins.

Nomura: Maintain Buy, target Rs 370, notes mixed performance but expects NOV growth of 15 per cent in FY26E.

BofA: Maintain Buy, target Rs 400, the brokerage emphasised on positive commentary and expansion to 2,100 Blinkit stores by December 2025.

Eternal’s stock opened at Rs 340.30 on the BSE on Friday. The shares touched an intraday high of Rs 347.75 and a low of Rs 333.75.