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Economic Times
6 days ago
- Business
- Economic Times
Eternal shares zoom 20% this week as Street rejoices Q1 results. What should investors do now?
Shares of Eternal, formerly Zomato, have surged 19.7% so far this week, hitting a high of Rs 307.95 on the BSE on Thursday. The rally follows the company's Q1FY26 earnings report, which, despite a steep decline in profitability, impressed the Street with strong topline performance and robust growth across its core verticals. ADVERTISEMENT The stock touched a fresh record high of Rs 311.60 earlier this week after it reported a 70% YoY surge in revenue from operations to Rs 7,167 crore for Q1FY26. This growth was led by solid performance in the quick commerce and food delivery segments. However, net profit dropped sharply by 90% YoY to Rs 25 crore, down from Rs 253 crore in the same quarter last year, largely due to continued investments in quick commerce and the going-out vertical. Akshant Goyal, CFO of Zomato, attributed the drop in profitability to 'continued investments in quick commerce and the going-out vertical.'The company's consolidated adjusted EBITDA declined 42% YoY to Rs 172 crore. Still, food delivery EBITDA margin improved to 5.0% from 3.9% a year ago. Additionally, net order value (NOV) of its B2C businesses grew 55% YoY and 16% QoQ to Rs 20,183 crore, with quick commerce surpassing food delivery NOV for the first time in a full quarter. ADVERTISEMENT After the sharp run-up, technical analysts have differing views on the next course of to Kunal V Parar, VP of Technical Research and Algo at Choice Broking, 'The stock has delivered an impressive return in recent sessions and continues to exhibit strong upward momentum, suggesting potential for further gains from current levels.' He observed that although the stock recently touched a new all-time high, it 'struggled to sustain above its previous resistance at Rs 305.' ADVERTISEMENT A decisive close above this level could, in his view, trigger the next leg of the rallyFrom a technical standpoint, Parar noted that the stock is currently trading above both its 50-day and 100-day moving averages, with a positive crossover that signals sustained bullish sentiment. Additionally, the daily Relative Strength Index (RSI) has moved above 70 for the first time in a while, indicating renewed market participation. ADVERTISEMENT He expects the stock to move towards the Rs 324–Rs 360 range in the near term, but advised investors to maintain a strict stop loss at Rs 275 to manage the other hand, Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, advised caution at current his words, 'At the current juncture, investors are advised to book profits in the Rs 300–Rs 305 range, as the stock approaches its previous high from December 2024.' ADVERTISEMENT Also read:IEX shares hit 10% lower circuit after CERC nod for market coupling ahead of Q1 resultsPatel added that investors should adopt a 'wait-and-watch approach' until a decisive weekly close above Rs 305 is observed before considering any fresh Thursday, the shares of Eternal were trading 2% higher at Rs 308 on the BSE around 10 am. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
22-07-2025
- Business
- Economic Times
Eternal shares in focus after strong Q1 revenue growth. Should you buy, sell or hold?
Shares of 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. ADVERTISEMENT 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. 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. ADVERTISEMENT 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 Read: 7 Nifty500 stocks with highest dividend yields. Do you own any? ADVERTISEMENT MOSL maintained a 'Buy' rating and raised the target price to Rs 330 from Rs 310. ADVERTISEMENT 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, also retained a 'Buy' call, raising the target price to Rs 340 from Rs 300. ADVERTISEMENT 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 raised its target price to Rs 320 from Rs 290 while maintaining a 'Buy' 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) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
22-07-2025
- Business
- Time of India
Eternal shares in focus after strong Q1 revenue growth. Should you buy, sell or hold?
Shares of 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)
News18
21-07-2025
- Business
- News18
Eternal posts Rs 25 cr consolidated net profit in Q1
Agency: PTI New Delhi, Jul 21 (PTI) Food delivery and quick commerce firm Eternal, which owns the Zomato and Blinkit brands, on Monday reported a consolidated net profit of Rs 25 crore for the June quarter, as continuing investments in quick commerce and going-out businesses weighed down on its bottomline. The company, which re-branded itself as Eternal in March, had reported a net profit of Rs 253 crore in the year-ago period. In a regulatory filing, Eternal said the results are not comparable with the corresponding quarter last year on account of the acquisition of Orbgen Technologies Pvt Ltd and Wasteland Entertainment Pvt Ltd, holding the 'movies ticketing' and the 'events' businesses, respectively, from One 97 Communications Ltd, (Paytm's parent firm) which was completed in August 2024. During the quarter under review, Eternal's revenue from operations stood at Rs 7,167 crore, up from Rs 4,206 crore a year ago, the company said in a regulatory filing, adding that, for the first time, its quick commerce net order value (NOV) exceeded food delivery NOV for the full quarter. The company's total expenses also jumped to Rs 7,433 crore, from Rs 4,203 crore in the corresponding period of the previous fiscal year. The reporting segments for the group include India food ordering and delivery; hyperpure supplies (B2B business); quick commerce; going out; and all other segments (residual). In the letter to shareholders, Eternal Chief Financial Officer (CFO) Akshant Goyal said on the profitability front, consolidated adjusted EBITDA declined 42 per cent year-on-year to Rs 172 crore in Q1FY26, largely on account of the continuing investments in quick commerce and going-out, which were partly offset by the improvement in food delivery adjusted EBITDA margin as a percentage of net order vale (NOV) to 5 per cent from 3.9 per cent a year ago. 'NOV of our B2C businesses grew 55 per cent YoY (16 per cent QoQ) to Rs 20,183 crore in Q1FY26. This was the first quarter where our quick commerce NOV exceeded food delivery NOV for the full quarter," Akshant said. He further said, 'On an annualised basis, we are now at almost USD 10 billion of annual NOV across our B2C businesses and quick commerce is now our largest B2C business contributing to almost half of this annualised NOV. Our B2B business Hyperpure's revenue grew 89 per cent Y-o-Y (25 per cent QoQ). We expect de-growth in this business in the next few quarters." Eternal CEO Deepinder Goyal informed shareholders that going-out is now a Rs 8,000-crore annualised NOV business that is about 20 per cent of the size of its food delivery and quick commerce businesses. Responding to the reason behind increase in the adjusted EBITDA loss in the 'others' segment, Deepinder said the increase in quarterly losses is largely on account of investments in the 10-minute food delivery service Bistro, where the kitchen infrastructure is owned and operated by Blinkit. 'We have 38 such kitchens live in Delhi-NCR and Bangalore currently. Early data is encouraging as the kitchens are generating incremental demand without cannibalising the Zomato business. Through Bistro, we are tapping into two demand pockets so far unaddressed by Zomato — a) customers looking for high quality but low cost meals (think customers who buy from home chefs), and b) customers looking for snacky food in 10 mins. While customer side traction is pretty strong, we need to work and find answers to making money in this business," he informed shareholders. Blinkit CEO Albinder Dhindsa said it added 243 net new stores this quarter, taking the store count to 1,544 by the end of the quarter. 'We are on track to get to 2,000 stores by December 2025. We also added 0.4 million sq ft of warehousing space and now operate over 5.6 million sq ft of warehousing space across the country," he stated. The Blinkit CEO further informed shareholders that the long-term profitability of the business is not a concern. 'As far as near-term is concerned, it does feel like percentage margins have bottomed out and, if the competitive environment stays the same, we should see margins getting better from here as a large number of stores that we opened in the past 12 months will mature. In fact, even the absolute losses should come down from hereon. But the margin improvement journey may not be linear and there could be some bumps along the way if the competitive intensity goes-up again for whatever reason," Albinder said. Asked about Eternal becoming an Indian Owned and Controlled Company (IOCC), and the plan for the transition to inventory ownership in quick commerce, the company's CFO Akshant said the cap on foreign shareholding (at 49.5 per cent) is in place. 'As of June 30, 2025, the actual foreign share-holding is at 43 pe cent. We will be gradually transitioning our quick commerce business from a marketplace model to inventory ownership over the next 2-3 quarters. Our teams are well prepared for this transition and we expect to start working with brands directly without any disruption to the business," he added. Akshant further informed that as an outcome of this transition, Eternal will also see shrinkage in Hyperpure's non-restaurant business as most of the B2B buyers in that business were sellers on its quick commerce platform. top videos View all On the leadership change in the food delivery business Zomato, with Aditya Mangla taking over as the new CEO, Deepinder said only Zomato is at a point where rotational leadership makes sense so far. Looking ahead, at Zomato, we are working on grooming product and technology-first operators to lead our businesses in the future. This is already in motion, not just at the top, but across levels. The result is a leadership pipeline that is wider, deeper, and built for the next few decades, not just the next quarter, Deepinder said. PTI RSN RKL TRB view comments First Published: July 21, 2025, 18:00 IST News agency-feeds Eternal posts Rs 25 cr consolidated net profit in Q1 Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Economic Times
21-07-2025
- Business
- Economic Times
Blinkit beats Zomato in NOV terms: 10 key takeaways from Eternal Q1 results
Reflecting explosive growth potential in the quick commerce business, Blinkit's net order value (NOV) surpassed that of Zomato's food delivery platform for the first time in Eternal's history. In its Q1 results, Eternal reported Blinkit's NOV grew 127% year-on-year (YoY) to Rs 9,203 crore, eclipsing Zomato's Rs 8,967 crore. ADVERTISEMENT While food delivery NOV growth slowed to 13% YoY from 14%, Blinkit posted 25% sequential growth. As a result, the stock ended over 5% higher at Rs 271.20 on the BSE. Here are 10 key takeaways from Eternal's Q1 results: Blinkit CEO Albinder Dhindsa said the platform added 243 net new stores in Q1FY26, taking the total to 1,544, and is "on track to get to 2,000 stores by Dec 2025." Blinkit's 127% YoY NOV growth was driven by a 123% jump in monthly transacting customers—from 7.6 million to 16.9 million. CEO Deepinder Goyal called it a historic milestone: 'This was the first quarter where our quick commerce NOV exceeded food delivery NOV for the full quarter.'Goyal unveiled Eternal's 'Rotational Leadership' model, where the CEO role of each business is time-bound, typically two years. Aditya Mangla, a four-year veteran from the product/engineering side, now leads Zomato's food delivery business—marking the first time someone outside Goyal is heading it. ADVERTISEMENT Adjusted EBITDA fell 42% YoY to Rs 172 crore due to continued investments in quick commerce and the 'going-out' vertical. CFO Akshant Goyal said NOV of B2C businesses rose 55% YoY to Rs 20,183 crore, but growth remains the top priority. Food delivery NOV growth moderated to 13% YoY from 14% in the previous quarter. Goyal admitted: 'It's unlikely we'll hit 20%+ NOV growth in FY26, but should stay north of 15%.' ADVERTISEMENT The "District"-centered going-out vertical scaled to a Rs 8,000 crore annualized NOV, about 20% the size of the food and quick commerce businesses. With better unit economics (Rs 160+ revenue/order), Akshant projects it could scale to $3 billion NOV and $150 million EBITDA in 5 Akshant Goyal announced a shift from a marketplace to an inventory-led model in quick commerce over the next 2–3 quarters. This could improve margins by 1 percentage point. Eternal also became an Indian Owned and Controlled Company (IOCC) with foreign shareholding capped at 49.5%. ADVERTISEMENT If EBITDA margins reach 5–6% of NOV, ROCE could touch 40%. Eternal projects total investment requirements of 9% of NOV (4% capex + 5% working capital), offering high returns on highlighted investments in Bistro, the 10-minute food delivery service: 'We have 38 kitchens live in Delhi-NCR and Bangalore.' Eternal is budgeting Rs 150 crore in FY26 loss funding across Bistro, Nugget, and other initiatives. ADVERTISEMENT Cash rose slightly to Rs 18,857 crore in Q1FY26 (from Rs 18,824 crore in Q4FY25). Capex stood at Rs 370 crore, with Rs 310 crore allocated to expanding the quick commerce store and warehouse network. Goyal said: 'New entrants and disruption are inevitable. But we aim to adapt, out-innovate, and stay ahead. Currently, we see no major threat.' Dhindsa added: 'We will not cede market position or lose sight of the long-term prize.' (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
