Eternal Q2 Preview: Brokerages Forecast Market Share Gains and Steady Margins

Eternal’s Q2 Performance Expected to Showcase Market Share Gains and Margin Improvements

As brokerages project significant growth for Eternal in the upcoming quarter, investors are keenly watching the food delivery and quick commerce sectors for signs of sustained profitability.

Brokerage Insights on Eternal’s Q2FY27

Brokerages are optimistic about Eternal’s performance in Q2FY27, anticipating continued market share gains in both food delivery and quick commerce segments. HDFC Securities projects a 22% year-on-year increase in Zomato’s adjusted revenue, estimating it to reach ₹3,490 crore. For Blinkit, the growth in net order value (NOV) and adjusted revenue is expected to be 17.1% and 17.8%, respectively, indicating a robust performance driven by operational efficiencies and strategic store expansions.

Profitability and Margin Expectations

HDFC Securities also highlights that food delivery margins are expected to improve by 30 basis points quarter-on-quarter. Blinkit’s adjusted EBITDA margin is projected to rise by the same margin, supported by enhanced efficiencies in dark-store operations. The addition of 250 new stores during the quarter is anticipated to bolster Blinkit’s market presence, further driving user engagement and transaction volumes.

Revenue Growth Projections

Kotak Institutional Equities shares a similarly bullish outlook, forecasting a 17.4% quarter-on-quarter revenue increase for Eternal, reaching ₹23,729.3 crore. The brokerage anticipates a staggering 257.4% year-on-year surge in EBITDA to ₹854.2 crore, with EBITDA margins expanding to 3.6%. This growth is expected to be underpinned by a 20% year-on-year increase in food delivery NOV and a remarkable 75% growth in Blinkit NOV, driven by aggressive store expansion and operational scaling.

Market Reaction and Stock Performance

Despite the positive outlook, Eternal’s share price faced pressure recently, trading 0.88% lower at ₹322.45 per share. This decline comes amidst a broader market downturn, with the Nifty 50 index also experiencing a drop of 1.21%. Over the past week, Eternal’s shares have decreased by 0.15%, contrasting with a 2.25% gain in the Nifty 50. However, the stock has shown resilience over a longer timeframe, gaining 13.64% year-to-date, significantly outperforming the Nifty 50’s decline of 12.54%.

Key Highlights

• Eternal expected to gain market share in food delivery and quick commerce.
• Zomato’s adjusted revenue projected at ₹3,490 crore, up 22% year-on-year.
• Blinkit’s NOV to grow by 75% year-on-year, supported by store expansion.
• EBITDA margins expected to improve across segments, indicating operational efficiency.
• Despite recent stock price pressure, Eternal has delivered strong long-term returns.

Investor Note: Investors should monitor Eternal’s upcoming quarterly results closely, as strong performance metrics could enhance investor confidence and potentially drive stock recovery, especially in light of its historical outperformance against the Nifty 50.