Eternal jumps 6% in early trade but pares gains later; analysts weigh in

Eternal, parent company of Zomato, shares gained 5.85 per cent in trade, registering an intra-day high at ₹300 per share on BSE. At 9:16 AM, Eternal’s share price was trading 5.86 per cent higher at ₹300 per share. In comparison, the BSE Sensex was up 0.67 per cent at 82,459.66. However, at 11:10 AM, Eternal shares slipped 0.62 per cent at ₹281.65.    The movement in the stock came after the company released its December quarter (Q3FY26) results on Wednesday and chief executive officer (CEO), Deepinder Goyal tendered his resignation. 

Eternal Q3 results highlights:

In Q3, Eternal reported a 72.8 per cent jump in its net profit to ₹102 crore, as against ₹59 crore a year ago. On a sequential basis, profit was up 56.9 per cent, up from ₹65 crore in Q2FY26.

 

The company’s revenue more than doubled year-on-year (Y-o-Y) to ₹16,315 crore, up from ₹5,405 crore a year earlier.

 

Alongside, its adjusted earnings before interest, tax, depreciation, and amortisation (Ebitda) increased 28 per cent on year to ₹364 crore and grew 63 per cent quarter-on-quarter (Q-o-Q) as compared to ₹224 crore in Q2FY26. 

Deepinder Goyal resigns

In a separate filing, the company informed that its Director, Managing Director & CEO, Deepinder Goyal, resigned from his post effective February 1, 2026.  The co-founder of one of the largest homegrown consumer internet companies named Albinder Dhindsa, CEO of Blinkit, his successor. 

 

Citing the reason behind his resignation, Goyal, in an X post, said that he is drawn to a set of new ideas that involve significantly higher-risk explorations and experience and are better pursued outside a public company like Eternal.

 

“While I believe I personally have the bandwidth to continue what I am doing at Eternal, and also explore new ideas outside of it, the expectations, legal and otherwise, of a public company CEO in India demand singular focus,” Goyal’s X post read. 

 

Brokerage’s view on Eternal 

Nomura | Buy | Target raised to ₹380 from ₹370

Nomura raised its target, factoring in the earlier break-even in the quick commerce business, Blinkit. In its note, the brokerage said that Blinkit (quick commerce) delivered ₹13,300 crore NOV, slightly below Nomura's expectation. Contribution margin rose 70 basis points (bps) Q-o-Q to 4.2 per cent, and adjusted Ebitda margin improved 100 bps Q-o-Q to breakeven (0 per cent)—earlier than Nomura's prior expectation of Q1FY27F breakeven.

 

On the leadership transition, the brokerage noted Deepinder will remain as Vice-Chairman, but has returned 23 million unvested ESOPs to the pool. Nomura flagged that a smooth transition without execution slippage is critical.

Motilal Oswal Financial Services | Buy | Target cut to ₹360 from ₹420

The brokerage believes Eternal’s food delivery business is stable, and Blinkit offers a generational opportunity to participate in the disruption of industries such as retail, grocery, and e-commerce. However, it reduced FY27/FY28 estimates by 15 per cent, factoring in intense

competition, continued dark store expansion, and branding and marketing investments in quick commerce. 

 

On the leadership transition, Motilal said it appears orderly, but the division of responsibilities between management and the board remains unclear as of now. While the day-to-day execution is unlikely to be disrupted, the change does introduce some uncertainty to the business, the brokerage noted.

JM Financial Institutional Securities | Buy | Target: ₹400

 In its note, the brokerage highlighted that Blinkit achieved a major milestone in Q3FY26 by turning adjusted Ebitda breakeven, at least two quarters ahead of expectations. 

 

This development coincided with a top-level leadership transition, which JM expects to be smooth, noting that it elevates a leader with a proven track record of scaling Blinkit, now central to Eternal’s long-term growth strategy. 

 

The brokerage trimmed its FY27 NOV growth assumption for Blinkit to around 80 per cent from 90 per cent earlier, but maintained confidence in continued margin expansion, even amid aggressive store additions and high competitive intensity.

Emkay Global Financial Services | Buy | Target cut to ₹370 from ₹430 

Emkay Global Financial Services said Eternal’s Q3FY26 results surprised positively on profitability, led by Blinkit reporting adjusted Ebitda of ₹4 crore, as against Street expectations of a ₹120 crore loss.

 

The brokerage noted that Blinkit prioritised profitability over growth during the quarter. Management indicated it would respond to competitive intensity and is willing to sacrifice margins if required. Emkay believes that during a land-grab phase, companies should prioritise market share over near-term margins to build scale that can be monetised over time. It added that Eternal’s performance demonstrates that quick commerce can be highly profitable at scale, and said Blinkit’s execution remains strong.

 

Looking ahead, Emkay expects competitive intensity in quick commerce to rise, with Eternal likely to shift focus towards market share, resulting in slower margin expansion in FY27 and FY28. Reflecting this, the brokerage cut its target price.

Elara Capital | Buy | Target: ₹415

Elara Capital said Q3FY26 was a pivotal quarter for Eternal, marking a sharp recovery in the food delivery business. Factoring in the overall Q3 performance, Elara raised its FY27–FY28E revenue and earnings per share (EPS) estimates by 3–5 per cent. 

 

Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.