Eternal Stock Extends Rally, Gains 8% in Two Days After Q2 Results

Eternal’s Q2 Momentum Puts Growth Spending in Focus

A sharp two-day advance follows strong operating growth, while the company’s expansion plans keep investment and margins in focus.

The rally follows a strong quarter, but growth requires investment

Eternal, the parent of Zomato and Blinkit, extended its advance after Q2 results. Its shares rose 3.4% to ₹327.80 in Monday intraday trade on the BSE, taking the two-session gain to 8%. At 1:57 p.m., the stock was up 3% at ₹325.75, while the Sensex had gained 0.50%. Eternal had reached a 52-week high of ₹344.75 on September 23, 2026.

The operating figures point to growth across several businesses, but the expansion is not cost-free. Axis Securities expects EBITDA margins to remain broadly flattish over the next one to two years as Eternal prioritises market expansion and growth in absolute adjusted EBITDA. That makes the quality and durability of customer and order growth important alongside headline expansion.

Blinkit leads the expansion story

Blinkit’s net order value (NOV) rose 79.3% year on year and 22.2% quarter on quarter to ₹20,940 crore in Q2FY27. The platform recorded 399 million orders and 37 million monthly customers. NOV per store per day increased 17% year on year to ₹9 lakh, compared with a steady-state target of ₹11 lakh.

Management raised its store target to more than 3,500 by March 2027, from 3,000, and set a goal of 5,000 by March 2028. Most additions are planned in smaller cities and newer categories. The company says these stores reach 1,000 daily orders at a pace similar to metro stores, with average order values at 85–90% of metro levels and similar customer retention. Blended capex is ₹2.5 crore per store. Axis Securities said the FY29 target of $1 billion in EBITDA remains unchanged.

The targets set a high bar for execution. Store openings need to translate into sustained order activity and stronger store economics; the reported gap between current NOV per store per day and the steady-state target is one measure investors may track.

Food delivery and other platforms add breadth

Food delivery NOV grew 21.5% year on year to ₹11,445 crore. Adjusted EBITDA was ₹627 crore, equal to a 5.5% margin versus 5.6% in Q1, while monthly transacting customers increased 16% to 28 million. Management’s focus on absolute EBITDA growth, rather than near-term margin expansion, frames how investors should read these figures.

District’s NOV rose 58% to ₹3,259 crore. Management remains confident in its FY30 targets of ₹28,000 crore in NOV and ₹1,400 crore in adjusted EBITDA. Hyperpure’s revenue grew 22.7% to ₹1,154 crore, serving 85,000 restaurants. These businesses broaden Eternal’s activity beyond food delivery and quick commerce, although the supplied figures do not establish how much each contributes to overall earnings.

AI plans remain an early-stage bet

Eternal is developing enterprise AI tools, including Nugget, and has introduced Dark.ai, a privacy-focused assistant intended to improve employee productivity and automate internal workflows. Built using fine-tuned open-weight models on Eternal’s infrastructure, Dark.ai is aimed at power users and is expected to launch globally in 2026. Management has described it as high-risk and is prepared to discontinue it if it does not gain traction.

The company is also changing the Zomato app’s AI chatbot, though users currently prefer visual browsing to conversational ordering. Axis Securities said the next 12 months should provide more clarity on Nugget and other AI initiatives. For now, the potential opportunity should be weighed against uncertain adoption and the possibility of higher hardware and computing costs.

Key Highlights

• Eternal gained 8% over two trading days following its Q2FY27 performance.
• Blinkit NOV rose 79.3% year on year to ₹20,940 crore, with 37 million monthly customers.
• Management raised Blinkit’s store target to more than 3,500 by March 2027 and 5,000 by March 2028.
• Food delivery NOV increased 21.5% to ₹11,445 crore, while adjusted EBITDA margin was 5.5%.
• Axis Securities recommends Buy with a ₹365 target, citing long-term growth potential alongside near-term investment needs.

Investor Note: The rally and brokerage target do not remove the execution risks around store expansion, margins or adoption of new AI products. Investors may weigh those uncertainties against operating growth across Eternal’s platforms and assess whether expansion delivers the targeted improvement in absolute earnings.