Eternal shares defy market fall after Q2 results; brokerages remain bullish

Eternal Q2 results review: Eternal, the parent firm of food-delivery marketplace Zomato and quick commerce (qcom) platform Blinkit, reported Q2FY27 results on Wednesday, delivering a strong performance for the July-September quarter (Q2FY27), analysts noted.

 

Subsequently, the company's counter gained on Wednesday. At 09:20 AM, Eternal’s share price was trading 1.1 per cent higher at ₹314 per share on NSE. In comparison, Nifty 50 was down 0.97 per cent at 22,590.65. In intraday trade, the stock gained 1.6 per cent to touch the day's high at ₹316 per share.

 

Eternal Q2 results highlights:

 

• The net profit of Eternal for the second quarter of financial year 2026-27 (Q2FY27) rose 92 per cent year-on-year (Y-o-Y) to ₹125 crore, compared to ₹65 crore in Q2FY26. On a sequential basis, profit rose 35.8 per cent from ₹92 crore in Q1FY27. The profit growth of the company was driven by its food delivery and qcom businesses.
• Eternal's revenue for the quarter rose 77.6 per cent Y-o-Y to ₹24,138 crore, up from ₹13,590 crore a year earlier. The revenue stood at ₹20,211 crore in Q1FY27.
• Alongside, Eternal’s consolidated adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) grew 197 per cent Y-o-Y to ₹666 crore, and increased 20 per cent quarter-on-quarter (Q-o-Q). The company’s cash balance declined to ₹16,475 crore compared to ₹18,288 crore in Q1FY27. The decline was on the back of a seasonal increase in net working capital ahead of the festive season.
• The NOV for Blinkit rose 79.3 per cent to ₹20,940 crore, compared to ₹11,679 crore in Q2FY26. The revenue rose 93.6 per cent to ₹19,152 crore.
• Blinkit’s adjusted Ebitda came in at ₹184 crore. It had reported its first ever adjusted Ebitda profit of ₹4 crore in Q3FY26.

 

Brokerages’ view on Eternal post Q2 Results

 

 

Emkay

 

Emkay noted that Eternal’s Q2FY27 performance was healthy, with Quick Commerce (QCom) NOV growth increasing to 22.2 per cent q-o-q from 19.1 per cent in Q2FY27 and adjusted Ebitda for food delivery growing 24.7 per cent y-o-y.

 

The brokerage also noted that management is seeing strong traction in smaller cities, with OPD ramp-up in line with that in metros along with sustainable unit economics. Blinkit added 308 stores, with store count now at 2,751.

 

“We believe Blinkit is capitalising on the QCom opportunity via aggressive network rollout and larger scale feeding into better unit economics. Eternal announced dark.ai, a privacy-first AI assistant aimed at power users, running on frontier open-weight models on Eternal's own infrastructure – pending details on monetisation and cost structure, we have a neutral stance,” Emkay said. 

 

Emkay retains a Buy rating on Eternal, citing its strong position to capitalise on India’s quick-commerce (QCom) opportunity. It raises the target price by 5 per cent to ₹420.

 

Nirmal Bang

 

The brokerage noted that both segments performed well in 2QFY27 as food delivery compounded at a steady 5.5 per cent margin while Blinkit booked a third consecutive quarter of positive adj. Ebitda and re-accelerated NOV, with QC competition turning predictable. The key driver is the upward reset of Blinkit's steady-state model alongside the management's willingness to guide to the top of the 6 per cent adj. Ebitda band and to re-accelerate store-adds from Q3 without margin dilution, which is the biggest incremental driver.

 

Nirmal Bang noted that the quarter reinforces a growth-led strategy at both Blinkit and food delivery, with improving visibility on quick-commerce expansion economics. Blinkit’s planned store acceleration, expected NOV growth pickup from Q3FY27, and continued productivity headroom support the medium-term growth outlook, while smaller-city expansion appears increasingly attractive on paybacks and food delivery prioritising absolute profit growth over margin maximisation.

 

Nirmal Bang retains a Buy rating on Eternal and raised its target price to ₹385, valuing its food-delivery business at 35 times estimated September 2028 EV/Ebitda and its quick-commerce business at around 1.3 times EV/GOV.

 

Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.