Eternal shares jumped as much as 5 per cent in early trade on the NSE on Wednesday following its March quarter results, supported by a sharp rise in profitability and continued optimism around its growth businesses. The stock was trading at ₹254.22 at 9:47 am, after hitting a high of ₹265.40 compared to the previous close of ₹253.07.

The company, which owns Zomato and Blinkit, reported a jump in consolidated net profit to ₹174 crore in the March quarter from ₹39 crore a year ago. Consolidated revenue from operations rose 196 per cent y-o-y to ₹17,292 crore from ₹5,833 crore in the corresponding period last year, reflecting strong traction across segments.

Global brokerage Morgan Stanley maintained an overweight rating and marginally raised its target price to ₹347 from ₹345, highlighting that the focus remains on profitable growth.

It noted that macroeconomic impact has been negligible so far, while management expects quick commerce net order value to grow at over 60 per cent CAGR y-o-y, with an adjusted EBITDA outlook of $1 billion by FY29.

The brokerage added that while near-term market reaction to Q4 may be mixed, underlying metrics remain strong and the quick commerce growth outlook should support estimates.

Investec maintained a buy rating with a target price of ₹375, stating that visibility on future growth is improving. It highlighted continued strength in food delivery and quick commerce, while noting that District and Hyperpure businesses remain steady, supported by a healthy cash surplus.

However, it flagged potential near-term volatility due to rising competitive intensity, even as execution remains strong.

UBS also maintained a buy rating with a target price of ₹310, describing the Q4FY26 performance as steady. It noted that food delivery growth is gradually approaching the 20 per cent mark, while quick commerce growth has moderated slightly but continues to see improving profitability despite competition. The brokerage said the company has laid out solid medium-term growth aspirations.

In contrast, Macquarie maintained an underperform rating with a target price of ₹200, citing concerns around moderating sequential growth despite optimistic guidance. It flagged downside risks to throughput improvements and expects dark store expansion to slow.

The brokerage also warned that elevated competitive intensity could pressure unit economics at the micro-market level and cautioned against extrapolating success in select markets across the country.

Among domestic brokerages, HDFC Securities said food delivery recovery continued, with net order value growing 18.8 per cent y-o-y to ₹97.6 billion, supported by improved affordability initiatives.

Margins remained largely stable q-o-q at 5.5 per cent, as operating efficiencies offset a shift towards lower-value orders. The brokerage expects food delivery growth to trend towards its long-term expectation of over 20 per cent y-o-y, with margins sustaining in the 5–6 per cent range.

Blinkit’s net order value growth moderated on a q-o-q basis due to seasonal factors, though it still recorded over 95 per cent y-o-y growth. Profitability improved, with adjusted EBITDA margins turning positive and supported by resilient unit economics despite heightened competition.

Consolidated adjusted EBITDA rose 160 per cent y-o-y, leading the brokerage to revise its estimates upward and maintain a buy rating with a target price of ₹340.

Motilal Oswal said the food delivery business remains stable, while Blinkit represents a significant long-term opportunity in the disruption of retail, grocery and ecommerce.

It expects quick commerce growth to normalise but with improving unit economics and a clearer path to profitability, including a $1 billion EBITDA target by FY29.

The brokerage projects gradual margin expansion driven by operating leverage and store maturity, reiterating a buy rating with a target price of ₹340, implying meaningful upside from current levels.

Published on April 29, 2026