Synopsis : Eternal Ltd shares soared nearly 15% to a record high after reporting a 70% YoY revenue surge in Q1 FY26, driven by Blinkit’s rapid growth. Despite a sharp dip in profits, investors cheered the company’s aggressive quick-commerce expansion.
Shares of Eternal Ltd (formerly Zomato) rallied sharply on Tuesday, July 22, hitting the upper circuit at ?298.30 and extending gains to a record high of ?311.60 on the BSE, marking a 14.9% jump intraday. The surge came after Eternal reported a robust 70% year-on-year rise in revenue for Q1 FY26 to ?7,167 crore, driven primarily by the strong performance of its quick commerce arm, Blinkit.
Despite the revenue growth, the company’s net profit plunged 90% to ?25 crore from ?253 crore a year earlier, due to continued investments and subsidies to scale Blinkit. For the first time, Blinkit’s gross order value (GOV) and net order value (NOV) surpassed Zomato’s core food delivery segment, with GOV at ?11,821 crore and NOV at ?9,230 crore, outpacing food delivery’s GOV of ?10,769 crore and NOV of ?8,967 crore. Blinkit’s revenue jumped 155% YoY to ?2,400 crore, while it added 243 new dark stores in the quarter, taking the total to 1,544.
The market reacted positively to Eternal’s strategic pivot, viewing Blinkit as its new growth engine. Monthly transacting users surged 62% to 16.9 million, highlighting strong customer adoption of quick commerce.
Brokerages gave mixed reactions: Jefferies upgraded Eternal to 'Buy' with a target of ?400, while CLSA and Bernstein maintained bullish stances with targets in the ?320–?385 range. Macquarie, however, retained an 'Underperform' rating with a target of ?150, flagging intense competition in the quick-commerce segment.
Despite near-term profitability pressures, investors are optimistic that Eternal’s aggressive Blinkit expansion will drive long-term value, with management indicating margin recovery as dark stores mature and scale sustainably.
Disclaimer : This article is for informational purposes only and does not constitute investment advice. Please consult a qualified advisor before making investment decisions.
