Eternal Share Price jumps 3% After Q1 FY27 Results; Should You Buy, Sell or Hold the Stock?

Eternal share price traded higher on Thursday after the food delivery and quick commerce company reported a strong set of June-quarter earnings, driven by robust growth in Blinkit and steady momentum in its food delivery business.

The stock opened at ₹289.85 on the NSE against the previous close of ₹294.40 and climbed to an intraday high of ₹294.25 as investors reacted to the quarterly performance. At the time of writing, the stock was trading around ₹284.

The gains came after Eternal, the parent company of Zomato and Blinkit, posted a sharp rise in revenue for the April-June quarter, helped largely by Blinkit's transition to the inventory-led (1P) model. The change means the company now recognises the full value of goods sold as revenue instead of recording only marketplace commissions.

For Q1 FY27, consolidated net profit stood at ₹92 crore, compared with ₹25 crore in the corresponding quarter last year, translating into a 268% year-on-year increase. Sequentially, however, profit fell from ₹174 crore reported in the March quarter.

Revenue from operations rose to ₹20,211 crore from ₹7,167 crore a year earlier and ₹17,292 crore in the preceding quarter, reflecting continued expansion across the company's core businesses.

Blinkit continued to lead growth during the quarter. Net order value increased 86% year-on-year to ₹17,132 crore, while adjusted revenue jumped 553% to ₹15,664 crore following the shift to the 1P model. Adjusted EBITDA improved by ₹264 crore to ₹102 crore.

The food delivery business also delivered another steady quarter. Adjusted revenue rose 33% year-on-year to ₹3,537 crore, while net order value grew 20% to ₹10,769 crore. Adjusted EBITDA improved by ₹155 crore to ₹606 crore, with margins continuing to expand.

The going-out business maintained healthy momentum, with adjusted revenue rising 54% year-on-year and net order value increasing 60% to ₹3,218 crore. The segment, however, remained loss-making at the EBITDA level, reporting a loss of ₹65 crore.

Hyperpure reported adjusted revenue of ₹1,034 crore, down 55% from a year ago. Even so, the business turned EBITDA positive, reporting adjusted EBITDA of ₹6 crore after improving by ₹24 crore.

Eternal Q1 FY27 Results: Should You Buy, Sell or Hold?

Kotak Neo Research has maintained its Buy rating on Eternal and raised its fair value to ₹395 from ₹385 after rolling forward its sum-of-the-parts valuation to September 2027. Based on the current market price of around ₹284, the revised target implies an upside of nearly 39%.

The research house said Blinkit's performance was broadly in line with expectations, with net order value growing 19% sequentially and 86% year-on-year. The business also delivered a 34-basis-point sequential improvement in EBITDA margin.

Food delivery, meanwhile, outperformed expectations. Net order value rose 20% from a year earlier, while EBITDA margin reached 5.6% of net order value, the highest reported by the business so far.

Kotak also highlighted Blinkit's continued focus on infrastructure expansion and profitable growth. The company added 200 dark stores during the quarter, taking its network to 2,443 locations, while monthly transacting users continued to increase. According to the research house, Blinkit continues to see strong growth momentum, with improving visibility on profitability over the medium term.

Kotak Neo Research expects food delivery gross order value to grow at a compound annual rate of 19% between FY26 and FY29, while Blinkit's gross order value is projected to expand at a 44% CAGR over the same period. Overall revenue is estimated to grow at a 49% CAGR.

The firm has retained its EBITDA estimates for Eternal's core businesses but has marginally lowered its FY27 and FY28 earnings per share estimates to factor in higher tax assumptions.

While competition in the quick commerce space remains intense, it continues to maintain a positive view on Eternal, citing sustained growth across Blinkit and food delivery, expanding infrastructure and improving earnings visibility.

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