Eternal Shares Defy Market Slump on Solid Q2 Results; Brokers Bullish

Eternal’s Strong Q2 Performance Defies Market Trends, Analysts Remain Optimistic

Eternal’s robust quarterly results highlight its resilience amid broader market challenges, positioning it as a key player in the food delivery and quick commerce sectors.

Eternal’s Q2 Financial Highlights

Eternal’s financial results for the July-September quarter (Q2FY27) revealed a remarkable 92% year-on-year increase in net profit, reaching ₹125 crore, up from ₹65 crore in the same period last year. Sequentially, this marks a 35.8% rise from ₹92 crore in Q1FY27. The surge in profit can be attributed to the strong performance of its food delivery and quick commerce segments.

Revenue for the quarter also saw substantial growth, climbing 77.6% year-on-year to ₹24,138 crore, compared to ₹13,590 crore in Q2FY26. This figure also represents a sequential increase from ₹20,211 crore in Q1FY27. Additionally, Eternal’s consolidated adjusted EBITDA soared 197% year-on-year to ₹666 crore, reflecting a 20% quarter-on-quarter increase. However, the company’s cash balance dipped to ₹16,475 crore from ₹18,288 crore in Q1FY27, primarily due to a seasonal rise in net working capital ahead of the festive season.

Blinkit’s Impressive Growth

Eternal’s quick commerce platform, Blinkit, reported a 79.3% increase in Net Order Value (NOV), reaching ₹20,940 crore compared to ₹11,679 crore in Q2FY26. Revenue from Blinkit also surged by 93.6% to ₹19,152 crore. Notably, Blinkit achieved its first-ever adjusted EBITDA profit of ₹4 crore in Q3FY26, with the latest quarter’s adjusted EBITDA coming in at ₹184 crore.

Brokerage Insights Following Q2 Results

Following the release of these results, several brokerages have expressed bullish sentiments towards Eternal. Emkay highlighted the company’s healthy performance, noting a quarter-on-quarter increase in Quick Commerce NOV growth from 19.1% to 22.2%. The brokerage maintained a Buy rating, raising its target price by 5% to ₹420, citing Eternal’s strong positioning to leverage India’s quick commerce opportunity.

Similarly, Nirmal Bang noted that both segments performed well, with food delivery maintaining a steady margin of 5.5%. The brokerage retained its Buy rating and increased its target price to ₹385, emphasizing the growth potential in Blinkit’s store acceleration and the overall positive outlook for quick commerce expansion.

Market Reaction and Future Prospects

Despite a broader market slump, Eternal’s share price increased by 1.1% to ₹314 per share on the NSE, contrasting with a 0.97% decline in the Nifty 50 index. The stock reached an intraday high of ₹316, reflecting investor confidence in the company’s growth trajectory.

As Eternal continues to expand its operations and capitalize on the growing demand for food delivery and quick commerce, analysts remain optimistic about its future performance. The company’s strategic focus on smaller cities and its innovative initiatives, such as the launch of dark.ai, position it well for sustained growth in a competitive landscape.

Key Highlights

• Eternal’s Q2FY27 net profit surged 92% YoY to ₹125 crore.
• Revenue rose 77.6% YoY to ₹24,138 crore.
• Blinkit’s NOV increased by 79.3% YoY to ₹20,940 crore.
• Brokerages maintain bullish ratings, with target prices raised for Eternal.
• Eternal’s share price defied market trends, gaining 1.1% despite broader declines.

Investor Note: Eternal’s strong Q2 results underscore its potential for growth in the competitive food delivery and quick commerce sectors. Investors should monitor the company’s expansion strategies and market dynamics as it continues to capitalize on emerging opportunities.