Eternal share price: Should you buy Zomato's parent stock post-Q1 results 2025?
Eternal shares climbed over 7 per cent to close at ₹ 276.50 despite the online food delivery firm posted 90 per cent drop in its net profit.
' This was largely driven by a stellar 70% YoY growth in revenue from operations, which rose to Rs.7,167 crore in Q1 FY26 from Rs.4,206 crore in Q1 FY25,' said Sugandha Sachdeva- Founder-SS WealthStreet.
The stock has given significant returns by surging over 30 per cent in 6 months and over 9 per cent in a month despite market volatility.
Zomato's parent company posted a 90% year-on-year decline in net profit, falling to ₹ 25 crore in Q1 FY26. Despite the profit drop, revenue from operations surged 70% year-on-year to ₹ 7,167 crore during the quarter.
The company's consolidated revenue rose 67% YoY and 22% QoQ to ₹ 7,563 crore, marking the 11th straight quarter of adjusted revenue growth exceeding 50% on a yearly basis.
Net order value (NOV) from quick commerce exceeded that of food delivery, pushing the company's total B2C NOV to ₹ 20,183 crore—marking a 55% year-on-year and 16% quarter-on-quarter increase. On an annualized scale, Eternal is approaching the $10 billion mark in B2C NOV, with Blinkit leading as the key driver of this growth.
' Looking ahead, Zomato is well-positioned to benefit from rising digital adoption, an expanding urban millennial base, and growing discretionary spending. The company's robust growth trajectory is underpinned by expanding order volumes, improving unit economics, and consistent margin improvement across key segments,' Sachdeva added.
Sachdeva further said that the technical structure indicates that the shares of Eternal had been consolidating between ₹ 255- ₹ 272 levels since early June but the stock has shown a sharp rise post the Q1 results, rising by around 5.64% in the previous session.
' The price structure indicates strong buying interest with bulls in control throughout the session. The stock price is also sustaining above the key 100, and 200 DEMA, indicating a bullish trend. Furthermore, the stock seems to have formed a base at Rs.255 levels from a short-term perspective, while major support rests at Rs.190 mark. However, some cool-off in the stock towards Rs.266-264, could provide a good price point to accumulate Eternal stock, with a near-term target of Rs.305 and then Rs.320. A protective stoploss should be placed at Rs.230 level on a closing basis,' she added.
On the other hand, Anuj Gupta, Director, Ya Wealth Research & Advisory, believes the stock might witness some profit-booking in the coming sessions.
' We are expecting some profit booking may be seen in the counter as stock rose more than 30% on last three month. This a time to book profit in eternal stock, it has a strong resistance around 290 to 310 range,' Gupta said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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