The stock jumped as much as 15% to hit an all-time high of Rs 311.6 on the BSE, before paring gains to trade 8.8% higher at Rs 295.10 by late morning. The sharp rally came as investors cheered a blowout June-quarter performance by Blinkit, Eternal’s quick-commerce vertical, alongside management commentary that analysts said marked a clear departure from earlier caution.
Investor enthusiasm was driven by Blinkit’s meteoric growth, which now surpasses Zomato in terms of net order value (NOV). The upbeat Q1 results led to a raft of upward target revisions. Jefferies led the charge, upgrading the stock to ‘Buy’ and raising its target price to Rs 400, the most bullish call on the Street, while admitting it had previously overestimated the competitive threat.
While the June quarter itself was mixed, Jefferies noted that “management commentary was significantly positive, especially on quick commerce, a departure from earlier quarters.”
Emkay Global said Blinkit “registered strong 1Q results, with Blinkit reporting 140% YoY GOV growth and 50bps QoQ improvement in adjusted EBITDA margin.” The brokerage raised its target price by 14% to Rs 330 from Rs 290, retaining a ‘Buy’ rating.
JM Financial also praised the company’s new tone. “Eternal once again surprised us positively on Blinkit. This time though, the surprise was more on management commentary than the reported numbers, as it was quite a contrast to the cautious tone post 4QFY25 results,” it wrote.
Analysts were particularly struck by Eternal’s strategic pivot. “Over the next 2-3 quarters, Eternal is set to gradually make a transition in the quick commerce (QCom) business, from its current marketplace model to an inventory ownership model; this will drive ~100bps margin expansion, albeit requiring net working capital of ~18 days,” according to Emkay.
Profit path in sight, but not everyone is convinced
Nomura forecasted a medium-term path to profitability, saying it expects “Blinkit to break-even at adjusted EBITDA level in 4Q FY26F,” while adding that “Blinkit management expects lower absolute growth in adj EBITDA in coming quarters as it continues to rationalize marketing spends.”
However, some analysts urged caution. Macquarie stuck to its bearish view, maintaining an ‘Underperform’ rating with a target price of Rs 150. “Despite yet to be proven steady-state economics and rising competition, the current share price implies $15bn value for Blinkit,” the broekrage warned. “Remain guarded on both Quick Commerce economics and what’s priced in Eternal shares.”
Market cap milestone
With Tuesday’s rally, Eternal’s market capitalisation temporarily touched Rs 3 lakh crore, placing it ahead of several marquee names on the Nifty 50. These include Wipro, Tata Motors, JSW Steel, Nestle India, Coal India, Bajaj Auto, Asian Paints, Eicher Motors, Tech Mahindra and Cipla.
Shares of Eternal have risen 33% over the past 12 months and are up 7% so far in 2025.
Also read | Eternal share price target goes up to Rs 400! What brokerages said after Q1 results
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
