Strong Buying Pushes Eternal to ₹331.95

Eternal Ltd, the parent company of Zomato, Blinkit, Hyperpure and District, continued its recent recovery on Wednesday, August 26, with the stock touching a 10-month high amid strong buying interest.

The shares climbed around 2 per cent during intraday trading to ₹331.95 on the BSE, marking the highest level since October 2025. The stock has now rebounded sharply from its 52-week low of ₹212.55 recorded on March 12, 2026.

From that March low, Eternal shares have gained nearly 56 per cent. The stock has also advanced around 28 per cent over the past two months, reflecting improving investor sentiment towards the company's food delivery and quick-commerce businesses.

The stock, however, remains below its previous 52-week high of ₹368.40, recorded on October 16, 2025.

Q1FY27 Performance Strengthens Investor Confidence

One of the key factors supporting the recent recovery has been Eternal's strong operating performance in the June 2026 quarter.

The company reported Business-to-Consumer (B2C) Net Order Value (NOV) growth of 54 per cent year-on-year to ₹31,120 crore in Q1FY27.

Adjusted revenue increased 173 per cent year-on-year and 17 per cent sequentially to ₹20,648 crore. On a like-for-like basis, adjusted revenue growth stood at around 66 per cent.

Adjusted EBITDA more than tripled year-on-year to ₹555 crore, indicating a significant improvement in operating leverage across the company's businesses.

The improvement in profitability is particularly important for investors because Eternal has been investing aggressively in quick commerce, where expansion costs and customer acquisition spending have historically weighed on margins.

Blinkit Emerges as a Major Growth Driver

Blinkit remains one of the most closely watched businesses within the Eternal ecosystem.

The quick-commerce platform recorded a reacceleration in NOV growth, with NOV increasing 19 per cent quarter-on-quarter during Q1FY27.

Blinkit also delivered its fifth consecutive quarter of improvement in adjusted EBITDA. Its adjusted EBITDA margin reached around 0.6 per cent of NOV during the quarter.

Management has indicated that the business could eventually achieve a steady-state margin of around 6 per cent of NOV, compared with its earlier estimated range of 5-6 per cent.

This potential margin expansion could become an important contributor to Eternal's long-term earnings growth if Blinkit continues to increase order density and improve fulfilment efficiency.

Competitive Pressure in Quick Commerce Remains High

Despite the improvement in Blinkit's financial performance, competition in India's quick-commerce industry remains intense.

Players across the segment continue to invest in dark stores, delivery networks, customer acquisition and promotional activity. This has created pressure on companies to balance rapid expansion with improving profitability.

Eternal management has described Q1FY27 as a period of peak competitive intensity, while suggesting that the competitive environment is becoming more predictable.

Analysts at Equirus Securities also highlighted that some discount-led competitors could face pressure as the economics of aggressive customer acquisition become increasingly challenging.

For Eternal, the key factor will be whether Blinkit can continue increasing scale and store productivity without requiring disproportionately higher spending.

Food Delivery Business Shows Consistent Growth

While Blinkit is driving much of the growth narrative, Eternal's core food-delivery business continues to provide a relatively stable earnings base.

The food-delivery segment recorded NOV growth of around 19 per cent year-on-year in Q1FY27. The business also reported record EBITDA margins of approximately 5.5 per cent, supported by higher monthly transacting customers and stronger user engagement.

The improvement suggests that Eternal is benefiting not only from increasing order volumes but also from better monetisation and operating efficiency.

The food-delivery market remains relatively concentrated, with a small number of major platforms competing for customers. Analysts believe this structural duopoly could support sustainable growth and improving profitability over the longer term.

Rising User Penetration Could Support Food Delivery Growth

India's food-delivery market still has significant room for expansion as online ordering becomes increasingly integrated into consumer spending habits.

Higher user penetration, increasing order frequency and improving monetisation could provide multiple avenues for growth.

For Eternal, the combination of a mature food-delivery business and a rapidly expanding quick-commerce platform creates a diversified growth model.

The food-delivery business provides comparatively stronger margins, while Blinkit offers a larger long-term opportunity as consumers increasingly shift grocery and everyday purchases towards instant-commerce platforms.

Analysts See Further Upside

Brokerage views have remained positive following the company's Q1FY27 performance.

Equirus Securities has maintained a 'LONG' rating on Eternal and assigned a target price of ₹385 per share. The brokerage highlighted the acceleration in food delivery growth, improving Blinkit profitability and the potential for stronger margins as competitive intensity becomes more predictable.

Motilal Oswal Financial Services has also retained a 'BUY' rating with a target price of ₹400 per share.

The brokerage expects Eternal's long-term growth to be supported by continued NOV expansion, store maturity and operating leverage. It has also factored in a gradual improvement in profitability as the company's businesses scale.

At ₹331.95, the Equirus target of ₹385 implies potential upside of roughly 16 per cent, while the Motilal Oswal target of ₹400 represents potential upside of around 21 per cent from the intraday high.

Margin Expansion Could Become the Next Trigger

Investors are increasingly shifting their focus from pure growth to the quality and sustainability of that growth.

For Eternal, the next major trigger could therefore be continued improvement in margins.

Blinkit's ability to generate higher NOV per store, improve fulfilment efficiency and increase contribution margins could materially influence consolidated profitability.

At the same time, sustained margins in food delivery could provide greater earnings visibility and help offset investment requirements in newer businesses.

Eternal's Multi-Business Model Provides Multiple Growth Engines

Eternal's business portfolio extends beyond food delivery and quick commerce.

Its ecosystem includes:

• Zomato: Food delivery platform

• Blinkit: Quick-commerce platform

• Hyperpure: B2B food supplies business

• District: Going-out and entertainment platform

This gives the company multiple avenues to increase customer engagement and monetisation.

The broader opportunity lies in using the same consumer base across different services while improving the economics of each individual business.

Key Risks Investors Need to Watch

Despite the sharp recovery in the stock, several risks remain.

Quick-commerce competition: Aggressive expansion by competitors could keep customer acquisition and promotional costs elevated.

Valuation sensitivity: After a 56 per cent recovery from its March low, expectations around future growth and profitability have increased.

Execution risk: Blinkit's profitability depends on achieving greater scale, store density and fulfilment efficiency.

Expansion costs: Rapid expansion of dark stores and delivery infrastructure could temporarily pressure cash flows and margins.

Market expectations: Any slowdown in NOV growth or delay in margin improvement could result in increased volatility in the stock.

Stock Still Below Its Previous Peak

Even after the recent rally, Eternal remains below its previous 52-week high of ₹368.40.

The stock's movement towards that level will likely depend on whether the company can sustain its recent operating momentum and demonstrate continued improvement in profitability.

The sharp recovery from ₹212.55 also shows that investor expectations have changed significantly since March, making upcoming quarterly results increasingly important for determining the next phase of the stock's trajectory.

Market Outlook

Eternal's near-term market outlook is likely to remain closely linked to the broader performance of the equity market, investor appetite for high-growth technology and consumer businesses, and developments in India's food-delivery and quick-commerce sectors.

A sustained move above the recent ₹331.95 high could keep the stock on the radar for further recovery towards its previous ₹368.40 peak, while profit-taking after the sharp rally could result in increased volatility.

The key factors to watch going forward will be Blinkit's margin trajectory, food-delivery growth, competitive intensity, quarterly NOV growth and the company's ability to translate expanding scale into sustainable profitability.