Shares of Eternal rallied 7.5 per cent in early trade on Thursday following 72.88 per cent jump in consolidated net profit for the quarter ended December 2025 at ₹102 crore. However, it has erased early gains in the afternoon trading session.
At 12.40 pm, the stock traded at 278.50 (down 2 per cent), fluctuating between the day’s low and high of ₹276.05-305 against the previous close of ₹288.05.
Brokerages broadly struck an optimistic tone on the stock, highlighting improving fundamentals in delivery and the strategic importance of quick commerce for Eternal’s long-term growth.
Global brokerage CLSA retained high conviction outperform rating on the stock at an increased target price of ₹506 from ₹483 earlier. The brokerage increased earnings estimate for FY26-28 by 5-15 per cent.
Jefferies, Nomura and HSBC have maintained buy ratings at 480, 380 and 350 target prices respectively.
Nuvama Institutional Equities said Eternal delivered a “quarter full of surprises”, as revenue beat consensus estimates. Nuvama pointed out that both Blinkit and Hyperpure achieved adjusted EBITDA breakeven much earlier than anticipated, which prompted the brokerage to sharply upgrade its FY26 earnings forecast by 41 per cent and FY27 by 2.3 per cent.
It maintained its buy rating on the stock and raised target price to ₹430 from ₹400 as it rolled forward estimates to FY28. The brokerage also noted that founder Deepinder will continue to handle all CEO responsibilities, albeit without formally holding the title.
Elara Capital also reiterated its buy call at a target price of ₹415, saying Q3 headline growth came in marginally ahead of expectations on the back of stronger food delivery and quick commerce performance. It added that intensifying competition through free deliveries and price discounts did not materially impact operating metrics, while Blinkit’s execution stood out.
The brokerage said store expansion remains on track, with the company targeting 3,000 locations by March 2027, though it cautioned that any gig-worker related fees above its estimates could pose a risk once regulatory clarity emerges.
HDFC Securities maintained its add rating on the stock at arget price of ₹340 per share, valuing the food delivery business at 45 times March 2028 EV/EBITDA and Blinkit at 1.5 times March 2028 net order value.
Motilal Oswal also reiterated a positive stance, describing Eternal’s food delivery business as stable while calling Blinkit a “generational opportunity” to participate in the disruption of retail, grocery and e-commerce. However, the brokerage said it has cut its FY27 and FY28 estimates by about 15 per cent to account for heightened competition, continued dark store expansion, and higher branding and marketing spends in quick commerce.
Despite this, Motilal Oswal expects Eternal to deliver PAT margins of 1.6 per cent in FY27 and 2 per cent in FY28.
Motilal Oswal maintained its buy call on the stock and set a target price of ₹360 per share, implying an upside of about 27 per cent from current levels.
The sharp move in the stock on Thursday reflects growing investor confidence that Eternal can balance growth and profitability, particularly as Blinkit scales up while the core food delivery business shows signs of stabilisation and recovery.