Eternal shares in focus after strong Q1 revenue growth. Should you buy, sell or hold?
Eternal
, the parent company of
Zomato
and
Blinkit
, will be in focus on Tuesday after the firm reported a sharp 90% year-on-year (YoY) decline in consolidated net profit for Q1FY26. Net profit stood at Rs 25 crore, compared to Rs 253 crore in the same quarter last year.
Despite the drop in profit, revenue from operations rose 70% YoY to Rs 7,167 crore, led by strong performance in
quick commerce
and food delivery segments.
Profit hit by investments in quick commerce and going-out segments
Akshant Goyal, CFO of Zomato, said the fall in profitability was mainly due to continued investments in quick commerce and the going-out vertical. Consolidated adjusted EBITDA dropped 42% YoY to Rs 172 crore, although food delivery EBITDA margin improved to 5.0% from 3.9% a year earlier.
The company said net order value (NOV) of its B2C businesses grew 55% YoY and 16% sequentially to Rs 20,183 crore. For the first time, quick commerce NOV surpassed food delivery NOV for a full quarter.
'On an annualised basis, we are now at nearly $10 billion in NOV across our B2C businesses, with quick commerce becoming our largest segment—contributing almost half of the annualised NOV,' Eternal said in its shareholder letter.
Adjusted revenue rose 67% YoY and 22% quarter-on-quarter (QoQ) to Rs 7,563 crore. Meanwhile, B2B unit Hyperpure posted 89% YoY revenue growth, though management expects a near-term slowdown in this segment.
Also Read:
7 Nifty500 stocks with highest dividend yields. Do you own any?
Should you buy, sell, or hold Eternal's stock? Here's what brokerages say:
Motilal Oswal
MOSL maintained a 'Buy' rating and raised the target price to Rs 330 from Rs 310.
The brokerage said quick commerce losses are stabilizing and Blinkit's strong growth—GOV up 140% YoY—is driving momentum. However, PAT missed estimates (Rs 25 crore vs Rs 270 crore expected). Despite this, MOSL expects 2QFY26 revenue and adjusted EBITDA to grow 66% and 15% YoY, respectively.
Elara
Elara also retained a 'Buy' call, raising the target price to Rs 340 from Rs 300.
It highlighted food delivery GOV hitting a three-quarter high and projected margins growing at 19.2% CAGR from FY25–28E. Elara raised revenue estimates by 3.5–6% on quick commerce strength but cut EPS forecasts by 4–17% over FY25–28E due to losses in other segments.
Nuvama
Nuvama raised its target price to Rs 320 from Rs 290 while maintaining a 'Buy' rating.
It revised FY26E and FY27E earnings upward by 1.4% and 8.4%, respectively, and pointed to Blinkit's profitability and inventory-led model as margin drivers. Management expects margin gains ahead, assuming stable market competition.
Also Read:
Apollo Tyres, Brigade Enterprises among 10 small-cap stocks trading below industry PE; may rally up to 43%
(
Disclaimer
: Recommendations, sugestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
13 minutes ago
- India.com
Dhoni receives Rs 60000000, Abhishek Bachchan Rs 1900000 monthly from SBI due to..., Reason will amaze you!
State Bank of India (SBI) is the largest government-owned and leading bank in the country, serving over 50 crore customers, with more than 50,000 employees and over 22,500 branches. People usually visit banks to take loans or to deposit money to save or earn interest. But the country's biggest bank pays cricketer MS Dhoni Rs 6 crore and actor Abhishek Bachchan Rs 18.5 lakh every month. You might be wondering why the bank pays these large sums of money to these two personalities. Even though Mahendra Singh Dhoni no longer plays cricket, he still enjoys immense popularity. Dhoni is a brand endorsement juggernaut, having received a hefty part of his earnings from his brand endorsements. There is a long list of companies that are utilizing Dhoni's brand image, and one of them is SBI. Since 2023, Dhoni has been an ambassador for India's largest bank, State Bank of India, and has been appearing in advertisements for SBI. SBI pays a hefty amount of money for brand endorsement. For endorsing State Bank of India (SBI)'s schemes, plans, and various banking facilities through advertisements, MS Dhoni receives an annual fee of ₹6 crores. MS Dhoni is the brand image of SBI and receives this fee for that purpose. Sharing a post, SBI's official Instagram account wrote, 'We are pleased to onboard MS Dhoni as Brand Ambassador of SBI. Mr. Dhoni's association with SBI as a satisfied customer makes him a perfect embodiment of our brand's ethos. With this partnership, we aim to reinforce our commitment to serving the nation and our customers with trust, integrity and unwavering dedication. – Mr Dinesh Khara, Chairman SBI.' The post was published on October 28, 2023. SBI also pays Abhishek Bachchan Rs 18.9 lakh every month. This is the amount the Bachchan family receives as rent because Abhishek has let out the ground floor of his opulent Juhu bungalow, Ammu and Vats, to SBI. The lease is for 15 years, and according to the lease, SBI pays the Bachchan family Rs 18.9 lakh every single month as rent. In fact, according the the report published on Abhishek makes this amount without any effort. The property, located near the Bachchan family's residence 'Jalsa,' spans 3,150 square feet. Essentially, Abhishek Bachchan makes almost ₹19 lakh, just for a ground-floor flat rental. The lease agreement was registered on September 28, 2021. The lease agreement spans 15 years and includes scheduled rent hikes over time: After 5 years, the monthly rent will increase to Rs 23.6 lakh. After 10 years, it will further rise to Rs 29.5 lakh.
Indian Express
13 minutes ago
- Indian Express
CAT 2025 Notification: IIM Kozhikode to start registration from Aug 1; exam on November 30
The Indian Institute of Management (IIM) Kozhikode will organise this year's Common Admission Test (CAT). The registration for CAT 2025 will start from August 1, and the exam will be held on Sunday, November 30. The notification was released in various national newspapers; however, the IIM Kozhikode will make the official website of the CAT 2025 live soon. The link for registration is This is the same website that was used in CAT 2024. The Common Admission Test (CAT) 2025 is scheduled to be conducted in three sessions through a computer-based test (CBT) format. An official notification detailing the exam and related guidelines will likely be published shortly on the CAT website. For this year, the registration fee has been set at Rs 1,300 for candidates belonging to SC, ST, and PwD categories, while all other applicants will need to pay Rs 2,600. The application process for CAT 2025 will commence on August 1 at 10 am and conclude on September 13 by 5 pm. Admit cards will be made available to candidates starting November 5, ahead of the exam scheduled for November 30. The results are tentatively expected in the first week of January 2026. This year, the examination will be conducted across approximately 170 cities, and candidates will have the opportunity to choose up to five preferred cities while selecting their test centres. –While applying for CAT 2025, candidates are required to upload scanned copies of their Class 10 and 12 mark sheets, along with either graduation certificates or their most recent semester results if they're currently in the final year. Applicants may also include work experience certificates, where relevant. Additionally, a valid photo ID and applicable category certificates for SC, ST, or PwD candidates need to be uploaded. –A recent passport-size photograph and signature are mandatory, and final-year students must also provide a certificate issued by their respective institution. CAT 2025 serves as an entrance gateway for admission to postgraduate as well as fellow/doctoral programmes offered by the Indian Institutes of Management (IIMs) and other participating institutions. However, it is important to note that CAT scores are just one component of the overall selection process. Candidates will be required to take part in additional evaluation stages, the specifics of which will be announced later on the respective institute websites. Last year, the Indian Institute of Management (IIM) Calcutta conducted the exam, wherein 14 candidates had scored 100 percentile, of which only one was a woman. Moreover, 13 aspirants were from an engineering background, while only one was a non-engineer. Of the 2.93 lakh candidates who appeared for the exam in 2024, 1.07 lakh were female candidates, 1.86 lakh were male candidates, and 5 were transgender candidates.
Indian Express
13 minutes ago
- Indian Express
Tender issued for widening of accident-prone Nuh-Alwar highway to 4 lanes
The highway connecting Haryana's Nuh with Alwar in Rajasthan is set to become a four-lane stretch within two years to reduce traffic congestion and provide better connectivity in this region. The Ministry of Road Transport and Highways (MoRTH) Thursday issued a notice inviting tender (NIT) for the four-laning of the 49.02-km stretch on the Nuh-Alwar highway (NH-248A). The current single-lane road has created traffic issues, reportedly resulting in approximately 3,000 deaths due to road accidents over the past 12 years. The project of four-laning is estimated to cost Rs 310.44 crore. To be executed under the engineering, procurement, and construction (EPC) mode, it includes strengthening and improving a 6.84-km section of the existing road in Malab and Bhadas villages in Nuh district, Haryana. The tender, issued by the superintending engineer and regional officer of the MoRTH in Jaipur, invites bids from qualified contractors. The completion period is 24 months, followed by a five-year maintenance period after the construction is complete. Bids can be submitted online via the Central Public Procurement Portal (CPPP) and Bill Information and Management System (BIMS) from July 24 to September 8, with the bid opening scheduled for September 9. The development comes after the Union government in April approved the project to convert the single-lane stretch into a four-lane road. On November 3, 2008, then Union minister S Jaipal Reddy laid the foundation for the four-lane road project. However, the project has remained in limbo. In a post on X, Transport Minister Nitin Gadkari in April said, 'This national highway section connects Gurugram, Sohna, and Nuh industrial areas. Due to the movement of heavy vehicles from Rajasthan to northern states, there is heavy traffic on this route. Making this section four-lane will reduce heavy traffic and provide better connectivity, which will promote economic development in this area.' Nuh Congress MLA Aftab Ahmed had earlier claimed it was the Manmohan Singh government that initiated works to convert the route into a national highway in 2014. 'But the BJP governments at the Centre and the state dropped this four-laning project in 2018, saying that the upcoming Delhi-Mumbai Expressway will take care of the needs of the people,' he had said. The Congress raised the issue repeatedly in the Haryana Assembly, Ahmed said, adding that he wrote to the ministry in December 2024 about the stretch between Nuh and the Rajasthan border via Ferozepur Jhirka.
