New Delhi: Eternal Ltd, the parent company of Zomato and Blinkit, has received mixed brokerage assessments following its September-quarter results for the second quarter of financial year 2026-27 (Q2 FY27). Analysts remain optimistic about Blinkit’s expansion and improving operating economics, but concerns over profitability, food delivery margins and the company’s valuation continue to shape their outlook.
Eternal reported a 77.6% year-on-year increase in consolidated revenue to ₹24,138 crore for the quarter ended September 2026. Net profit rose 92.3% to ₹125 crore from ₹65 crore in the corresponding period last year. However, the profit figure fell short of market expectations, highlighting the impact of investment and operating costs on the company’s bottom line.
Brokerages including UBS, Jefferies and JPMorgan retained positive ratings on the stock, with Jefferies and JPMorgan raising their target prices. Macquarie maintained a cautious stance, citing valuation concerns despite the company’s operating progress.
Eternal Q2 FY27 results: Key numbers
Eternal’s latest results showed strong growth in revenue and its key operating businesses, although profitability did not meet analysts’ estimates.
- Consolidated revenue: ₹24,138 crore, up 77.6% year-on-year.
- Net profit: ₹125 crore, up 92.3% from ₹65 crore a year earlier.
- EBITDA: ₹752 crore, compared with ₹239 crore in the year-ago quarter.
- EBITDA margin: 3.1%, compared with 1.8% a year earlier.
- Blinkit net order value growth: 79% year-on-year.
- Food delivery net order value growth: 21% year-on-year.
Revenue exceeded the estimated ₹23,447 crore, but net profit was below the expected ₹304 crore. EBITDA also missed the estimate of ₹776 crore, while the 3.1% margin came in below the projected 3.3%.
The results underline the contrast between Eternal’s rapid business expansion and the challenge of converting that growth into higher profits.
Blinkit expansion remains the central growth driver
Blinkit continued to be a major contributor to Eternal’s growth during the quarter. Revenue from the quick-commerce business increased 94% year-on-year to ₹19,152 crore, while net order value grew 79%.
The company has also raised its dark-store expansion target. Management now aims to operate more than 3,500 stores by March 2027, compared with its earlier target of 3,000. It plans to expand the network to around 5,000 stores by March 2028.
The expansion is intended to strengthen Blinkit’s reach, improve delivery coverage and increase order volumes in existing and newer markets. Greater scale could help improve operating efficiency as stores mature.
However, opening new dark stores requires investment and can weigh on margins during the initial months. The key question for investors is whether improvements in established locations can offset the costs of expansion.
UBS maintains Buy rating with ₹390 target
UBS retained its Buy rating on Eternal and set a target price of ₹390 per share.
The brokerage highlighted Blinkit’s better-than-expected quick-commerce performance and the company’s decision to raise its store expansion target. It also noted that management appeared confident about the competitive environment in quick commerce.
At the same time, UBS flagged signs of flattening margins in food delivery. Its assessment reflects the balance between Blinkit’s growth prospects and the need to maintain profitability across Eternal’s businesses.
Jefferies raises target price to ₹430
Jefferies maintained its Buy recommendation and increased its target price to ₹430 from ₹415.
The brokerage cited faster Blinkit store expansion alongside improving operating economics. It also expects food delivery growth to remain above 20% and sees potential for the District business to develop further.
Jefferies identified Dark.ai, Eternal’s planned artificial intelligence initiative, as another development to monitor, while acknowledging uncertainty over its eventual outcome.
The revised target reflects the brokerage’s positive assessment of Eternal’s growth strategy, though execution and the financial returns from its investments remain important considerations.
JPMorgan raises target price to ₹420
JPMorgan retained its Overweight rating and raised its target price to ₹420 from ₹390.
The brokerage said quick-commerce growth remained strong despite competition, while food delivery faced a trade-off between expansion and margins.
JPMorgan expects Blinkit’s margins to improve even as the company accelerates its store rollout. It also expects Eternal to sustain food delivery growth of at least 20% year-on-year, with margins remaining broadly flat over the next one to two years as the company continues investing in growth.
Macquarie remains cautious with ₹225 target
Macquarie maintained its Underperform rating on Eternal with a target price of ₹225 per share.
The brokerage acknowledged the company’s execution and the higher store expansion target, but expressed concern that the stock’s valuation already reflects much of the anticipated progress.
Macquarie also pointed to the moderation in adjusted EBITDA margins amid continued reinvestment. Its position illustrates the difference between expectations for business growth and the price investors are willing to pay for that growth.
Food delivery margins and competition remain key risks
While Blinkit is attracting considerable investor attention, Eternal’s food delivery business remains an important part of the overall financial picture.
Food delivery revenue increased 37% year-on-year to ₹3,396 crore, while net order value rose 21%. The segment continues to face the challenge of expanding its customer base and order volumes without putting excessive pressure on profitability.
Competition in quick commerce is another factor investors will monitor. Rivals continue to compete for customers through delivery promises, product availability, pricing and promotional offers. Eternal must maintain its market position while ensuring that store expansion translates into sustainable returns.
The company’s ability to balance customer acquisition, operational efficiency and margins will be central to its performance in coming quarters.
Eternal share price outlook: What investors should know
The target prices published by the four brokerages show a range of views on Eternal’s valuation and growth prospects.
| Brokerage | Recommendation | Target price |
|---|---|---|
| Jefferies | Buy | ₹430 |
| JPMorgan | Overweight | ₹420 |
| UBS | Buy | ₹390 |
| Macquarie | Underperform | ₹225 |
These targets reflect individual analysts’ assumptions and are not guaranteed future share prices. The potential upside or downside from any target depends on the market price used for comparison, which can change throughout the trading session.
Eternal’s next phase will depend on Blinkit’s expansion, the profitability of mature stores, food delivery margins and the returns generated by investments across its business segments. Investors will also need to weigh the company’s growth opportunities against competition and valuation risks.
The Q2 results reinforce the company’s strong revenue momentum, but the earnings shortfall shows why sustained growth and improved profitability will both matter in assessing its future performance.