$ETERNAL

Eternal Ltd, the parent company of Zomato, is likely to remain in focus on Thursday after reporting a mixed set of results for the June quarter. While revenue exceeded Street expectations, net profit came in well below estimates. Despite the earnings miss, several brokerages maintained a bullish outlook, citing strong execution in the food delivery and quick commerce businesses, along with improving profitability at Blinkit. Shares of Eternal rose 0.8% to close at ₹284.40 on Wednesday following the earnings announcement. The stock has gained nearly 2% so far in 2026, outperforming the Nifty 50, which has declined 8.2% over the same period. The company currently has a market capitalisation of more than ₹2.79 lakh crore. For the first quarter of FY27, Eternal reported a consolidated net profit of ₹92 crore, significantly below the CNBC-TV18 poll estimate of ₹335 crore. Profit declined 47% sequentially but was more than three times higher than the corresponding period last year. Consolidated revenue came in at ₹20,211 crore, ahead of the CNBC-TV18 poll estimate of ₹19,850 crore. Revenue increased 17% quarter-on-quarter and more than doubled compared with the year-ago period. Following the results, analysts reaffirmed their Overweight rating on the stock with a target price of ₹390. They described the quarter as strong, driven by accelerating growth across Blinkit, the food delivery business, and District. The brokerage noted that Blinkit's growth rebounded while profitability improved despite a competitive environment. It also highlighted management's decision to raise Blinkit's long-term EBITDA margin target to 6% of NOV, alongside its view that competitive intensity in the quick commerce segment is approaching its peak.