Revenue from operations soared 196% YoY to Rs 17,292 crore. On a consolidated basis, like-for-like revenue growth stood at 64% YoY. The gap reflects the accounting transition to inventory ownership in quick commerce, where reported revenue now includes the full value of goods sold instead of only marketplace commissions.
Blinkit continued to lead growth, with quick commerce NOV rising 95% YoY and 8% quarter-on-quarter. The company added 216 net new stores during the quarter, taking the total store count to 2,243 by quarter-end.
Looking ahead, the company guided for NOV growth CAGR of more than 60% over the next three years, implying the business could expand to nearly four times its current scale during that period.
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Jefferies has maintained its Buy rating on Eternal share price while cutting its target price to Rs 400 (57% upside). The brokerage said that despite intense competition, the company delivered further improvement in quick commerce profitability, which it described as commendable.
Growth was modest during the quarter, partly due to seasonal factors, but management has guided for around 60% CAGR over the next three years, while retaining 5-6% EBITDA margins. Jefferies added that the food delivery business saw no impact from gas shortages and delivered strong NOV, with an equally positive outlook ahead.
The brokerage also noted management’s guidance of $1 billion consolidated EBITDA by FY29E and said the company views artificial intelligence as an enabler for future growth.CLSA has maintained its High Conviction Outperform rating on Eternal shares with a target price of Rs 505, a staggering 97% upside. The brokerage said Blinkit’s net order value (NOV) grew 95% YoY, broadly in line with estimates. Contribution margin remained flat quarter-on-quarter despite a 4% decline in average order value (AOV), which it attributed largely to seasonal factors.
Goldman Sachs has maintained its Buy rating on Eternal stock price and cut its target price to Rs 340, an upside of 34.5% from current levels. The brokerage expects Blinkit’s underlying NOV growth to remain in the mid-teens on a quarter-on-quarter basis. It noted that quick commerce margins are improving despite intense competition, while food delivery growth continues to accelerate.
The firm said Blinkit’s FY26-29 NOV CAGR guidance of 60%+ is unlikely to be fully reflected in current Street estimates. Goldman Sachs believes the company’s $1 billion EBITDA target by FY29 is achievable and added that markets are willing to assign premium valuations to profitable consumer technology companies.
It sees potential upside of around 50% over the next two years if EBITDA targets are achieved. However, it cautioned that the path to margin expansion could remain uneven amid competition.
Morgan Stanley has maintained its Overweight rating on Eternal stock and raised its target price to Rs 347 from Rs 345. The brokerage said it was encouraged by quick commerce profitability and customer additions, while Blinkit’s OPD growth stood at 15% QoQ.
Morgan Stanley noted that large cities are nearing 5-6% adjusted EBITDA margins in quick commerce and sees no material impact from competition on customer retention. Despite a mixed headline print, it believes consensus estimates are likely to hold, with favourable risk-reward and possible upside to forecasts.
Nomura has maintained its Buy rating on Eternal while lowering its target price to Rs 340 from Rs 380, implying a potential upside of 34.5% from current levels. The brokerage said the key drivers of future growth remain a wider product assortment, continued geographic expansion and improving demand density as the business matures. Nomura has reduced its net order value (NOV) growth estimates for FY27 and FY28 by 15%.
The brokerage added that Eternal is targeting $1 billion in adjusted EBITDA from its consumer businesses, including food delivery, quick commerce and District, by FY29E. While this guidance is lower than Nomura’s earlier estimates and Bloomberg consensus, the firm believes disciplined execution and a strong focus on profitability could help the company achieve the goal. A key risk to its positive view remains lower profitability in quick commerce for a longer-than-expected period.
Bernstein has maintained its Outperform rating on Eternal while lowering its target price to Rs 350. The brokerage said quick commerce growth remains strong, with Blinkit net order value rising around 95% YoY.
Bernstein further said quick commerce growth is being driven by expansion beyond metro cities and a higher share of non-grocery categories. However, it expects near-term volatility to continue amid elevated competition.
Motilal Oswal has maintained its Buy rating on Eternal with a target price of Rs 340. The brokerage said Eternal’s food delivery business remains stable, while Blinkit presents a long-term opportunity to benefit from disruption across sectors such as retail, grocery and ecommerce.
It noted that while quick commerce growth is expected to moderate to around 70% in FY27, this should be seen as a normalisation phase rather than a slowdown. Motilal Oswal believes improving unit economics and a clearer path to profitability, including management’s $1 billion EBITDA target by FY29, support the long-term outlook. It also expects margins to expand gradually, driven by store maturity and operating leverage. Eternal is projected to deliver a profit after tax margin of 2.4% in FY27E and 3.0% in FY28E.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)