Eternal Share Price Declines 2% After Surging 7% In Early Trade: Should You Still Buy? | Republic Business Stock Update

The Eternal share price surged 7% to hit an intra-day high of Rs 304.20 in early trade on Thursday, January 22 after its Q3FY26 performance demonstrated strong execution. However, the stock went through a reversal, falling as much as 2% to hit an intra-day low of Rs 276.00 apiece.

Eternal Q3FY26 Result

Eternal, the parent company of  food delivery app Zomato and quick e-commerce platform Blinkit, registered a consolidated net profit growth of 73% year-on-year (YoY) to Rs 102 crore in the quarter ended December 2025.

The company’s revenue from operations in Q3FY26 skyrocketed 201% year-on-year (YoY) to Rs 16,315 crore, led by growth in quick commerce business. Eternal said, the like-for-like revenue growth during the quarter was 64% YoY.

Consolidated EBITDA during the December quarter registered a hike of 28% YoY to Rs 364 crore. On a sequential basis, EBITDA grew 63%.

According to an Anand Rathi brokerage note, "Eternal’s Q3FY26 performance demonstrated strong execution particularly on QC segment with Blinkit achieving adj. EBITDA profitability for the first time, while maintaining robust y/y growth (NOV up 121% y/y), despite high competition intensity. This, along with solid performance in FD (+16.6% y/y NOV growth) and Hyperpure (achieving adj. EBITDA profitability), gives enough evidence of operational discipline and effective execution of strategy across the company's business units."

Should You Buy Eternal Shares After Deepinder Goyal's Resignation?

After Deepinder Goyal resigned as MD and CEO of Eternal Group , effective February 1, Anand Rathi in a brokerage report remained bullish on Zomato's parent entity.

“We continue to maintain our positive stance on the company and retain our BUY rating with the TP of Rs 400, assuming 35x FY28e EBITDA to FD, 2.3x/1.2x EV/NOV to QC/GO and 1.2x EV/Sales to Hyperpure. Further, we don’t see any material impact of leadership changes as segmental business heads have always remained autonomous in their respective processes,” it said.

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Segmental Guidance:

(a) Food Delivery: It continues to aim ~20% y/y NOV growth over the longer-term (NOV up 14.5% y/y in 9MFY26)

(b) Quick Commerce: With ~2,027 dark stores currently operational, the company is on track to achieve ~3k stores (or even ~3.5-4k stores) by Mar-27, subject to competition intensity.

(c) Hyperpure: Over the next three years, it is optimistic of segment’s $1bn topline (~25-30% topline CAGR) with ~4-5% adj. EBITDA margin

(d) Going Out: It expects losses to reduce (~Rs 2.4bn loss in 9MFY26) and reaching breakeven over the next 4-6 quarters, with plans in-place to earn $3bn NOV  and ~5% Adj. EBITDA margin by FY30 (~Rs 66bn NOV with -ve 3.6% margin in 9MFY26).

Brokerage Outlook On Eternal Ltd

"We expect NOV/revenue to clock ~41.3/58.3% CAGR over FY26-28e. Over the same period, segment-wise, expecting FD/QC/GO to deliver 19/58.1/30% NOV growth," according to a Anand Rathi brokerage report.

On revenue front, we expect FD/QC/GO/Hyperpure to report ~19/73.2/30/15% revenue CAGR over FY26-28e. Further we expect adj. EBITDA of Rs35bn/Rs30bn/Rs6bn for FD/QC /others (hyperpure & GO) by FY28.

Risks: Competition in QC might lead to market-share loss, cost escalation, and consumption slowdown.

Risks

• Intense competition: QC business is faced with keen competition, with Zepto, Swiggy, Flipkart Minutes, BB Now and the latest entrant, Amazon.
• Profitability hit on cost escalation: With the constant rise in dark stores, GOV/dark store may take a hit, along with cost escalation, as QC operators would be eyeing areas where delivery time could be well managed. This would lead to more demand for select locations, raising rentals.
• Consumption slowdown: It could persist for longer, which may lead to a slowdown in the food delivery segment.