Eternal Continues Rally After Q1, Hits Fresh 52-Week High

SUMMARY

Eternal shares jumped 4% to INR 313.95 to hit fresh 52-week high on the BSE today

The company's market capitalisation zoomed to INR 2,99,932 Cr and a trading volume of nearly 7.12 Cr at 1:00 PM

The stock’s rally is driven by higher revenues and brokerages positive outlook for Blinkit

Continuing the rally after the Q1 show, shares of Eternal surged almost 4% to INR 313.95 on the BSE, hitting a fresh 52-week high today.

With the surge in its market price, its market capitalisation stood at INR 2,99,932 Cr with more than 7.12 Cr shares traded hands on the exchanges at 1:00 PM.

The stock’s winning streak started on July 21 after it reported higher revenue in the first quarter of financial year Q1 FY26.

Zomato parent Eternal posted a consolidated net profit of INR 25 Cr for the first quarter of FY26, marking a decline of over 90% year on year YoY and 36% quarter on quarter QoQ.

The plunge in net profit was driven by continued investments in its quick commerce vertical Blinkit. However, Eternal’s operating revenue in the quarter surged over 70% YoY and 23% QoQ to INR 7,167 Cr.

At the time of writing, the stock was 2.9% higher at INR 310.80 on the BSE from its previous close.

Shares of Eternal performed well in both short and long term as it surged almost 22% in the last month and over 47% in the past one year.

However, the jump in its stock price is in contrast with the slump in the benchmark indices today. While NSE Nifty was trading 0.67% lower at 25,051.20, BSE Sensex was 0.74% down at 82,118.54 at 1:00 PM.

Notably, Q1 FY26 was the first fiscal quarter where Eternal’s quick commerce arm Blinkit outpaced the company’s bread-and-butter food delivery segment in contribution to its top line.

Brokerage firms including UBS, Citi, and Bernstein cited an improving outlook for Blinkit.

UBS and Citi acknowledged that Eternal’s consolidated adjusted EBITDA missed estimates by over 25% yet maintained a bullish stance and issued Buy calls. While Citi raised its target to INR 320 from INR 290, UBS maintained its target at INR 315.

Eternal’s total income for the period rose 69% YoY to INR 7,521 Cr. Meanwhile, its expenses also surged to INR 7,433 Cr, marking a 77% YoY and 22% QoQ jump.

Eternal made a high-profile debut on the Indian bourses in July 2021, listing at a 53% premium over its issue price of INR 76 and quickly soaring to INR 160.

Notably, Zomato saw a change in leadership recently, with head of product Aditya Mangla taking over as its new CEO.

The stock closed the trading session 3.44% up at INR 312.40 on the BSE today.