Eternal Shares Rally Over 7% Following Impressive Third Quarter Performance
The share price of Eternal Limited witnessed a significant surge during early trading hours on Thursday, climbing more than 7% after the company unveiled its financial results for the third quarter of fiscal year 2026. The stock, which operates the prominent food delivery platform Zomato and the quick commerce service Blinkit, experienced a remarkable rally, reaching as high as 7.33% to touch ₹304.20 per share on the Bombay Stock Exchange (BSE).
Robust Financial Growth and Operational Highlights
Eternal reported a consolidated net profit growth of 73% year-on-year (YoY), amounting to ₹102 crore for the quarter that concluded in December 2025. The company's revenue from operations demonstrated an extraordinary surge, increasing by 201% YoY to reach ₹16,315 crore in Q3FY26. This substantial revenue growth was primarily driven by the expansion and success of its quick commerce business segment.
Furthermore, the like-for-like revenue growth during this quarter stood at an impressive 64% YoY. Consolidated EBITDA for the December quarter also showed strong performance, rising by 28% YoY to ₹364 crore. On a sequential basis, EBITDA experienced a notable growth of 63%, indicating sustained momentum in operational efficiency.
Food Delivery and Quick Commerce Segment Performance
In the food delivery business, adjusted revenue increased by 26% YoY to ₹2,413 crore. The net order value (NOV) reported a growth of 17% YoY, while the gross order value (GOV) growth was recorded at 21% YoY. The segment's absolute adjusted EBITDA rose by 26% YoY to ₹531 crore, with its adjusted EBITDA margin (as a percentage of NOV) achieving an all-time high of 5.4%.
The quick commerce segment, represented by Blinkit, showcased exceptional performance with NOV growth at 121% YoY and like-for-like NOV growth standing at 130% YoY. Notably, the adjusted EBITDA margin (as a percentage of NOV) turned positive for the first time on a quarterly basis, resulting in an adjusted EBITDA profit of ₹4 crore.
Leadership Transition and Strategic Moves
Eternal informed the stock exchanges about a significant leadership change, with Deepinder Goyal resigning from his positions as Managing Director and Chief Executive Officer, effective from February 1. Goyal will transition to a new role as Vice Chairman and Director on the Board, a move that analysts suggest is intended to avoid potential conflicts as he explores ventures outside the company while maintaining his existing responsibilities within Eternal.
Analyst Perspectives and Investment Recommendations
Following the announcement of the Q3 results, several brokerage firms provided their insights and recommendations:
- Nuvama Institutional Equities highlighted that Eternal delivered better-than-expected Q3 results with multiple surprises, including Blinkit and Hyperpure achieving adjusted EBITDA breakeven earlier than estimates. The firm maintained a 'Buy' rating on Eternal shares and raised the sum-of-the-parts (SotP) based target price to ₹430 per share, up from the previous ₹400.
- Motilal Oswal Financial Services reiterated its 'Buy' call on the stock, noting that Eternal's food delivery business remains stable while Blinkit presents a generational opportunity to participate in the disruption of retail, grocery, and ecommerce industries. The firm reduced its share price target to ₹360 per share, factoring in intense competition and continued investments.
Stock Performance and Market Outlook
Eternal's share price has shown varied performance across different time frames:
- Remained flat over the past one month.
- Declined by 16% in the last three months.
- Gained 32% over the past one year.
- Delivered multibagger returns of 453% over the past three years.
As of 9:25 AM, Eternal share price was trading 2.45% higher at ₹290.35 per share on the BSE.
Disclaimer: The views and recommendations mentioned above are those of individual analysts or broking companies, and not of Mint. Investors are advised to consult with certified experts before making any investment decisions.
