Eternal Shares Rise Over 4% As Brokerages Stay Bullish After Q1 Results

Shares of Eternal Ltd, the parent company of Zomato, gained in early trade on Thursday as investors responded positively to favourable brokerage views following the company’s June quarter earnings.

The stock rose over 4% to Rs 295, becoming the top gainer on the Nifty 50 despite weakness in the broader market.

Brokerages largely looked beyond Eternal’s weaker-than-expected profit performance and focused on the company’s strong operational execution across its food delivery and quick commerce segments.

Analysts highlighted improving profitability at Blinkit, continued growth in food delivery and management’s confidence that competitive pressure in the quick commerce space remains under control.

Eternal reported a consolidated net profit of Rs 92 crore for the first quarter of FY27. The profit declined 47% sequentially from Rs 174 crore in the previous quarter but increased sharply compared with Rs 25 crore reported in the year-ago period.

Revenue performance, however, remained strong. Consolidated revenue stood at Rs 20,211 crore, exceeding the poll estimate of Rs 19,850 crore.

Revenue increased 17% quarter-on-quarter from Rs 17,292 crore and more than doubled from Rs 7,167 crore in the same period last year.

The company’s EBITDA rose 22% sequentially to Rs 594 crore, while EBITDA margin improved slightly to 2.9% from 2.8% in the previous quarter.

Brokerages maintained a positive outlook on Eternal, citing sustained momentum in its core businesses.

Analysts pointed to Blinkit’s rapid expansion, improving profitability trends and disciplined execution as key factors supporting future growth.

Market experts also noted that competitive intensity in the quick commerce segment appears to be stabilising.

Management’s confidence regarding the business environment and the revised long-term EBITDA margin outlook for Blinkit have further strengthened expectations of improved profitability over the medium term.