Eternal Share Price Navigates Turbulent Waters Amid Mixed Results
Shares of Eternal, the company formerly known as Zomato, have been on a rollercoaster ride, exhibiting extreme volatility that mirrors the deep uncertainty among investors regarding its evolving business strategy and financial performance. The stock's returns paint a conflicting picture across different time horizons, having climbed 12 percent over the last year and surging 29 percent in the past six months. However, it has retreated 4 percent in the previous three months and witnessed a sharp 10 percent decline in just the last month.
This whipsaw action was highlighted by the stock touching its 52-week high of ₹368.40 in October 2025, a peak reached merely months after it hit a 52-week low of ₹189.60 in April 2025. In the trading session on Wednesday, November 19, the stock managed a modest gain, trading 0.75 percent higher at ₹308.20 as the market digested recent financial updates against the backdrop of the company's long-term potential.
Q2 FY26 Financials: A Story of Contrasting Fortunes
The company's financial results for the second quarter of fiscal year 2026 presented a stark contrast. Eternal reported a steep 63 percent year-on-year decline in its profit after tax (PAT), which stood at ₹65 crore. This is a significant drop from the ₹176 crore profit recorded in the same quarter last year. It is worth noting that the firm, which completed its rebranding from Zomato to Eternal in March, had posted a net profit of ₹25 crore in the quarter immediately preceding this one.
On a more positive note, the top-line growth was explosive. Revenue from operations skyrocketed 183 percent year-on-year to ₹13,590 crore in Q2 FY26, a massive jump from ₹4,799 crore reported a year earlier. This also represents a substantial increase from the ₹7,167 crore in revenue generated in the previous quarter.
Brokerage Bullishness and Technical Perspectives
In a significant development for investor sentiment, global brokerage giant Morgan Stanley reaffirmed its overweight rating on the Nifty 50 constituent in a report released on Tuesday, November 18. The brokerage not only maintained its positive stance but also increased its target price to ₹427 from ₹420, projecting a potential upside of over 38 percent from current levels.
Morgan Stanley argued that the recent 14–15 percent correction in the stock price offers an attractive entry point for long-term investors. The firm stated, "The recent pullback offers one of the best risk-reward setups in our coverage, and we would use the weakness to accumulate." The brokerage emphasized Eternal's focus on expanding its customer market share, suggesting that gains in wallet share will follow as the user base solidifies. It expects strong support for the stock in the ₹280–285 zone.
Technical analysts are also observing the price action closely. Anand James, Chief Market Strategist at Geojit Investments Limited, noted that the month-long downtrend appears to be softening, with sideways movement since the second week of November creating conditions for a potential upside reversal. He identifies 330–340 as near-term upside objectives but cautions that failure to hold above ₹302 could signal a loss of momentum.
Hitesh Tailor, Research Analyst at Choice Broking, pointed out that Eternal is consolidating near an immediate support level of ₹300, with a stronger support band at ₹280–275. He advises traders to wait for a clear breakout above ₹315 with strong volumes, which could then trigger a move towards targets in the ₹380–400 range. A strict stop loss at ₹275 is recommended for those who enter after a confirmed breakout.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
