Eternal Shares Rise 2% After Strong Q2 Results as Brokerages See Up to 34% Upside

Eternal, the parent company of Zomato and Blinkit, reported strong revenue growth and a near-doubling of net profit in the second quarter of FY2026–27, drawing renewed attention from investors and brokerages. The company’s consolidated net profit increased 92.3% year-on-year to ₹125 crore for the quarter ended September 30, 2026, while revenue from operations rose 77.6% to ₹24,138 crore. The stock subsequently gained around 2% in the trading session highlighted by The Economic Times, as investors assessed the company’s growth outlook and brokerage price targets.

Despite the headline growth, Eternal’s earnings came in below analysts’ expectations, with higher delivery expenses, employee costs and depreciation weighing on profitability. The company’s quick-commerce business, Blinkit, continued to expand its store network and improve adjusted operating performance, while its food delivery platform, Zomato, recorded higher order values and operating profit. Motilal Oswal has indicated potential upside of up to 34% in its valuation assessment, but the stock’s future performance will depend on growth, profitability, competitive intensity and execution.

Key Takeaways

• Eternal’s Q2 FY27 net profit rose 92.3% year-on-year to ₹125 crore.
• Revenue from operations increased 77.6% to ₹24,138 crore.
• Profit missed analyst estimates despite strong revenue growth.
• Blinkit’s net order value increased 79.3% year-on-year to ₹20,940 crore.
• Zomato’s food delivery net order value rose 21.5% to ₹11,445 crore.
• Eternal added 308 Blinkit stores during the quarter, taking the total to 2,751.
• Motilal Oswal’s reported price target implied up to 34% upside at the time of its assessment.
• The company plans to accelerate Blinkit expansion, targeting more than 3,500 stores by March 2027 and around 5,000 by March 2028.

Eternal Q2 FY27 Results: Revenue and Profit Nearly Double

Eternal’s September-quarter performance reflected strong activity across its food delivery and quick-commerce businesses. Revenue from operations reached ₹24,138 crore, compared with ₹13,590 crore in the corresponding quarter a year earlier.

Net profit rose to ₹125 crore from ₹65 crore in Q2 FY26. Compared with the preceding June quarter, profit increased from ₹92 crore, while revenue rose from ₹20,211 crore.

Eternal quarterly financial performance

Financial metric	Q2 FY26	Q1 FY27	Q2 FY27
Revenue from operations	₹13,590 crore	₹20,211 crore	₹24,138 crore
Consolidated net profit	₹65 crore	₹92 crore	₹125 crore
Year-on-year revenue growth	—	—	77.6%
Year-on-year profit growth	—	—	92.3%
Total expenses	₹13,813 crore	₹20,314 crore	₹24,166 crore

Source: Eternal financial results reported by Moneycontrol and Business Standard. Figures are rounded.

The growth in revenue demonstrates the scale of business activity across Eternal’s platforms. However, total expenses also increased substantially, reaching ₹24,166 crore in the quarter.

Reuters reported that analysts had expected substantially higher profit, with the average estimate at approximately ₹271 crore. This gap between actual earnings and market expectations helps explain why strong year-on-year growth did not automatically translate into sustained positive sentiment.

Investors generally evaluate a company against both its previous performance and the earnings they expected it to deliver. When expectations are high, revenue growth alone may not be enough to satisfy the market.

Why Brokerages See Potential Upside in Eternal Shares

Brokerages have highlighted the potential for continued growth in Eternal’s food delivery and quick-commerce businesses.

Motilal Oswal has cited a target price of ₹380 for Eternal, implying approximately 34% upside from the share price used in its assessment. Its investment case rests on the improving trajectory of food delivery, Blinkit’s expansion opportunity and the potential for operating leverage as newer stores mature.

The brokerage also expects food delivery to benefit from sustained order-value growth and customer engagement. For Blinkit, the key opportunity lies in increasing sales through existing stores while opening new locations and expanding into additional markets.

However, price targets are estimates rather than guarantees. They depend on assumptions about future revenue, margins, competition and valuation multiples. Actual share-price performance can differ materially from brokerage projections.

Blinkit Remains a Major Growth Driver

Blinkit continued to be one of the most important contributors to Eternal’s growth.

The quick-commerce platform’s net order value (NOV) increased 79.3% year-on-year to ₹20,940 crore in Q2 FY27. NOV measures the value of orders processed through the platform and is different from the revenue Eternal recognises from its quick-commerce operations.

Blinkit added 308 stores during the quarter, taking its total network to 2,751 locations at the end of September.

The company expects to cross 3,500 stores by March 2027 and reach approximately 5,000 by March 2028. The expansion is intended to improve customer reach, support faster deliveries and increase the platform’s presence in smaller cities.

Expansion brings both opportunity and cost

Opening new dark stores can help Blinkit reach more customers and increase order volumes. However, new locations typically require investment in facilities, inventory, staffing and logistics before they achieve mature sales levels.

Eternal said Blinkit’s adjusted EBITDA improved to ₹184 crore from ₹102 crore in the preceding quarter. Its adjusted EBITDA margin reached approximately 0.9% of net order value.

This improvement suggests that the quick-commerce business is progressing toward stronger operating economics. Nevertheless, continued expansion could put pressure on margins in the short term because newer stores generally need time to reach efficient operating levels.

The central question for investors is whether Blinkit can sustain rapid order growth while improving profitability as its network expands.

Zomato Food Delivery Business Records Steady Growth

Eternal’s food delivery business, operated under the Zomato brand, also delivered positive results.

Its net order value increased 21.5% year-on-year to ₹11,445 crore in Q2 FY27. Adjusted EBITDA rose 25% to ₹627 crore, indicating higher operating earnings alongside order growth.

Food delivery is a more established business than Blinkit’s rapidly expanding quick-commerce operation. Its performance depends on order frequency, restaurant partnerships, customer acquisition, delivery efficiency and competition.

Eternal has been working to attract more customers through pricing, loyalty programmes and a broader range of affordable meals. These initiatives can help expand the addressable market, although discounting and incentives must be balanced against profitability.

The food delivery business also provides a different earnings profile from quick commerce. Its relatively established operations can contribute operating cash flow while the company continues investing in Blinkit’s expansion.

Rising Expenses Remain a Concern

Despite strong growth, Eternal’s rising expenses were a major factor behind the profit shortfall.

Total expenses increased 75% year-on-year to ₹24,166 crore. Delivery charges, purchases of stock-in-trade, employee costs and depreciation contributed to the increase.

For a company expanding both food delivery and quick commerce, higher spending can reflect increased business volumes as well as investment in capacity. The important distinction is whether these expenses generate sufficient additional revenue and eventually improve operating margins.

Investors will therefore monitor several indicators over coming quarters:

• Blinkit profitability: Whether mature stores can offset the costs of new locations.
• Food delivery margins: Whether order growth can continue without excessive discounts or incentives.
• Operating expenses: Whether cost growth begins to moderate relative to revenue.
• Cash generation: Whether expansion can be funded without undermining financial flexibility.
• Competitive intensity: Whether rivals force the company to spend more on prices, promotions and delivery infrastructure.

Strong revenue growth can support a higher valuation, but sustained earnings growth generally requires the business to convert a larger share of its sales into operating profit and cash flow.

Eternal’s Valuation and Competition

The quick-commerce market remains competitive, with companies investing heavily in store networks, product availability and delivery speed. These investments can increase customer adoption but may also delay improvements in profitability.

Eternal’s valuation reflects expectations of continued expansion in both Blinkit and Zomato. If the company achieves its growth objectives while improving margins, investors may continue to assign value to its long-term opportunity. If growth slows or operating costs rise faster than expected, the market could reassess those expectations.

Brokerage targets therefore need to be considered alongside the risks. A target suggesting 34% upside represents an analyst’s estimate based on a particular set of assumptions, not a prediction that the share price will necessarily reach that level.

The Bigger Picture

Eternal’s results reflect the changing economics of India’s digital consumer businesses. Food delivery has developed into a large, established market, while quick commerce continues to expand through new locations, greater product availability and faster fulfilment. Combining these businesses gives Eternal multiple sources of growth, but also requires substantial spending on technology, logistics and operations.

The long-term investment case will depend on whether the company can turn scale into sustainable profitability. Blinkit must show that new stores can mature efficiently, while Zomato must maintain order growth and margins in a competitive market. For investors, revenue growth, adjusted EBITDA, cash generation and valuation assumptions are all important when assessing whether the stock’s potential upside is justified.

FAQs

1. What were Eternal’s Q2 FY27 results?

Eternal reported net profit of ₹125 crore, up 92.3% year-on-year, while revenue from operations increased 77.6% to ₹24,138 crore.

2. Why did Eternal’s profit miss expectations?

Higher delivery, employee and depreciation costs weighed on earnings. Although revenue grew strongly, total expenses also increased substantially, leaving net profit below analyst estimates.

3. Why are brokerages positive about Eternal?

Some brokerages see further growth from Zomato’s food delivery business and Blinkit’s quick-commerce expansion. Motilal Oswal’s reported ₹380 target implied approximately 34% upside at the time of its assessment.

4. How many Blinkit stores does Eternal operate?

Blinkit had 2,751 stores at the end of September 2026 after adding 308 locations during Q2 FY27. Eternal has outlined plans to exceed 3,500 stores by March 2027 and reach around 5,000 by March 2028.

5. Is Eternal’s stock guaranteed to rise by 34%?

No. The 34% figure reflects a brokerage price-target calculation based on assumptions about future performance and valuation. It is not a guaranteed return, and the stock can fall if results, market conditions or investor expectations change.

Looking Ahead

Eternal’s near-term performance will depend on its ability to maintain growth across food delivery and quick commerce while managing the cost of expansion. Blinkit’s store additions and improving adjusted EBITDA are important indicators, but investors will also watch whether new locations reach maturity quickly enough to support margins. Zomato’s order growth and operating profitability will remain equally important to the group’s earnings trajectory.

The brokerage outlook provides a framework for understanding the potential upside, but the next quarterly results will offer more evidence about execution. Sustained revenue growth, improving profitability and disciplined investment could support investor confidence, while a continued gap between earnings and expectations could create volatility. The company’s ability to convert scale into durable cash generation will remain central to its long-term valuation.