Eternal Shares Rise on Analyst Upgrades After Q1 Results

Eternal's shares climbed as much as 4.5% on Monday, reaching an intraday high of ₹296.15, following positive commentary from financial analysts regarding the company's fiscal first-quarter performance and its growth prospects.

The rally was spurred by Eternal's June-quarter earnings report, which demonstrated strong momentum across both its food delivery segment and its quick commerce arm, Blinkit. Analysts specifically highlighted Blinkit's robust growth and improving profitability, alongside Eternal's strategic positioning to navigate increasing competition.

Multiple brokerage firms, including JPMorgan, Jefferies, and CLSA, maintained their 'Buy' or 'Overweight' ratings and raised their target prices. Key factors cited included Blinkit's margin expansion and Eternal's focus on profitable growth over market share gains driven by deep discounts.

Eternal reported a consolidated net profit of ₹92 crore for Q1 FY27, a nearly 3.7-fold increase year-over-year. The company's revenue saw substantial growth, largely due to Blinkit's revised accounting model recognizing the full value of goods sold. Blinkit remained the primary revenue contributor, with its operating profit showing significant sequential improvement.

The company plans to continue investing in both the expansion of Blinkit's network and the optimization of its logistics. CEO Albinder Dhindsa indicated that the price war in the quick commerce sector is nearing its end, as competitors face limitations in further discounting without severely impacting their bottom lines.