Eternal Shares Jump Nearly 5% after Q4 Profit, Brokerages See More Upside Ahead

Eternal shares jumped as much as 4.7% to ₹265 in Wednesday's early trade before pulling back to settle around 1.5% higher at ₹257. The rally came on the back of its results for the January-March quarter that showed improving momentum across business segments.

The company reported a consolidated net profit of ₹174 crore for Q4FY26, a sharp 71% jump quarter-on-quarter, driven by a recovering food delivery business and accelerating profitability at its quick-commerce arm, Blinkit. Revenue came in at ₹17,290 crore, up 6% sequentially. EBITDA margins expanded 50 basis points QoQ to 2.8%.

Segment Breakdown

Blinkit remained the standout performer. The quick-commerce platform reported net order value (NOV) growth of 8.2% QoQ to ₹14,390 crore, with monthly transacting users rising 15.3% to 27.2 million. Order volumes climbed 12.6% to approximately 274 million. Adjusted EBITDA turned meaningfully profitable at ₹37 crore, compared to just ₹4 crore in Q3FY26, even as the company added 216 dark stores during the quarter, taking its total count to 2,243. Management has maintained its target of 3,000 dark stores by March 2027, and guided for over 60% NOV CAGR over the next three years.

Zomato's food delivery segment sustained its recovery, with NOV growing 18.8% YoY to ₹9,760 crore, from 16.6% growth in the previous quarter. Monthly transacting users grew 2% QoQ to 25.4 million. Adjusted EBITDA margins held steady at 5.5%, with management targeting sustained growth toward 20%-plus YoY NOV over the long term.

The Hyperpure and Going-Out segments, meanwhile, had their own story to tell.

Going-Out (District) is finding its footing. NOV growth surged 46% YoY and 5.8% sequentially, while adjusted EBITDA losses narrowed sharply to ₹81 crore from ₹121 crore in the December quarter. Margin losses too compressed to -3% from -4.7%.

Hyperpure, had perhaps its most convincing quarter yet. Revenue grew 37% YoY and the business crossed into profitability, posting an adjusted EBITDA of ₹5 crore against ₹1 crore in Q3, with overall margins inching up to 0.5%.

Brokerages Stay Bullish

Brokerages remained largely constructive on the stock. JM Financial reiterated its 'Buy' rating with a target price of ₹400, calling Eternal its top pick in the listed internet space and noting the company's positioning to benefit from strong industry tailwinds in hyperlocal delivery.

Institutional Research also maintained a 'Buy' with a target of ₹340, revising adjusted EBITDA estimates upward by 10% for FY27 and FY28, and commending Blinkit's ability to balance rapid store expansion with disciplined unit economics.

Nuvama, while trimming its target price to ₹380 from ₹430 to account for heightened competition in quick commerce, held its 'Buy' call, noting management's guidance to achieve $1 billion in adjusted EBITDA by FY29.