Eternal shares jump over 6% today, extend gains as brokerages turn bullish after robust Q3 results

Eternal Ltd (Zomato)

• Eternal Ltd shares surged over 6 percent after strong December-quarter results
• Blinkit posted adjusted EBITDA profit, boosting investor sentiment
• Founder Deepinder Goyal to step down; Blinkit CEO Dhindsa to take over

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Shares of Eternal Ltd surged more than 6 percent in early trade on Thursday to Rs 301.65, extending the rally triggered by its December-quarter results, as investors reacted positively to improving profitability and a sharp turnaround in quick commerce. The move lifted the company’s market capitalisation to about Rs 2.74 lakh crore.

Eternal stock is building on Wednesday’s nearly 5 percent gain, with buying momentum driven by upbeat brokerage commentary following the Q3 FY26 earnings announcement.

Why Eternal (Zomato) stock is rising

Eternal, which owns Zomato and Blinkit, reported a 73 percent year-on-year rise in consolidated net profit to Rs 102 crore for the December quarter, in line with estimates. Revenue jumped to Rs 16,315 crore, ahead of expectations, led by the quick commerce business. EBITDA rose to Rs 368 crore, with margins expanding to 2.3 percent, while Blinkit and Hyperpure turned adjusted EBITDA-profitable during the quarter.

The inflection at Blinkit -- which posted an adjusted EBITDA profit of Rs 4 crore after losses in recent quarters -- has emerged as the key catalyst for the stock.

Brokerages upbeat; leadership transition seen as manageable

Brokerages struck a largely bullish tone on the results, pointing to Blinkit’s profitability milestone and improving unit economics. CLSA reiterated its 'high-conviction outperform call' with a target price of Rs 503, citing stronger-than-expected contribution per order and a 121 percent year-on-year jump in Blinkit’s net order value. Jefferies and HSBC also maintained buy ratings, highlighting quick commerce EBITDA break-even and food delivery growth acceleration, while Nomura flagged execution consistency as a key monitor despite reiterating a buy call.

Alongside the earnings, Eternal announced a leadership transition, with founder Deepinder Goyal stepping down as MD & CEO and Blinkit CEO Albinder Dhindsa set to take over, subject to shareholder approval. Brokerages said the change does not materially alter the near-term investment case, noting that operational control had already been centred around Blinkit under Dhindsa’s leadership.

Investors appear to be keenly watching Blinkit’s profitability inflection and steady food delivery growth; along with execution and management transition.

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