Eternal market cap zooms past Wipro, Tata Motors, Asian Paints, other Nifty 50 stocks; valuation triples since listing
The shares of food delivery giant Zomato's parent company has surged 18% over the past three sessions, and have now surpassed the market capitalisation of several established names, including Wipro ( ₹ 2.72 lakh crore), Tata Motors ( ₹ 2.52 lakh crore), Coal India ( ₹ 2.40 lakh crore), Bajaj Auto, Asian Paints, and Nestle India. State-run PowerGrid Corporation was trading with a market value near ₹ 2.78 lakh crore.
Eternal share price has witnessed significant growth since its stock market debut on July 23, 2021, exactly four years back. The company was listed at ₹ 116 per share on the NSE, a 52.63% premium over its IPO issue price of ₹ 76, giving it a market cap of over ₹ 1 lakh crore on listing day. Since then, Eternal has become part of the benchmark Nifty 50 index and has outpaced several legacy companies in terms of market value.
Zomato's parent company reported a 90% year-on-year (YoY) decline in net profit during the first quarter of FY26, falling to ₹ 25 crore. Despite the plunge in profit, revenue from operations surged 70% YoY to ₹ 7,167 crore during the quarter.
For the first time, Blinkit's net order value (NOV) exceeded that of Eternal's core food delivery business on a full-quarter basis. The company noted that, on an annualised basis, total NOV across its B2C businesses has reached nearly $10 billion, with Blinkit now contributing close to 50% of that figure.
Blinkit's Q1 FY26 revenue jumped to ₹ 2,400 crore, compared to ₹ 942 crore in the same quarter last year. Gross order value (GOV) for Blinkit grew 140% YoY. The business also showed improvement on the profitability front, with adjusted EBITDA loss narrowing to ₹ 162 crore from ₹ 178 crore in Q4 FY25.
'Eternal once again surprised us positively on Blinkit. This time though, the surprise was more on management commentary than the reported numbers, as it was quite a contrast to the cautious tone post Q4FY25 results,' JM Financial said.
Notably, the company stated that Blinkit's EBITDA losses have peaked — both in margin and absolute terms — and that its transition to an inventory-led model over the next 2–3 quarters could improve margins by approximately 100 basis points (as a percentage of NOV), while requiring only limited working capital.
Eternal also indicated plans to nearly double Blinkit's dark store count from 1,544 to 3,000, further highlighting its aggressive expansion strategy.
Despite the strong performance of Blinkit, there were some concerns in Eternal's Q1 results. The adjusted EBITDA margin for the food delivery business contracted sequentially for the first time in 14 quarters. Additionally, there was an unexpected rise in investments in 'Bistro' — a venture operated by Blinkit.
Nonetheless, JM Financial believes the positives in Blinkit are likely to outweigh the misses in other businesses. The brokerage firm reiterated Eternal as its preferred pick with a 'Buy' rating on the stock, and an unchanged target price of ₹ 320 June 2026, implying a price-to-earnings ratio (PER) of 75x.
Eternal share price has gained 18% in one month and more than 25% in three months. The stock has rallied 35% over the past six months, while it has risen 9% on a year-to-date (YTD) basis. Eternal share price has delivered multibagger returns of 273% in two years and a staggering 460% in three years.
At 1:50 PM, Eternal share price was trading 0.37% higher at ₹ 300.95 apiece, with a market-cap of ₹ 2,90,427.30 crore, on the BSE.
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.
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