Eternal revenue surges 77 percent
Eternal Ltd. reported a 77.6% year-over-year surge in September-quarter revenue, reaching Rs 24,138 crore—exceeding the projected Rs 23,447 crore. However, net profit climbed 92.3% to Rs 125 crore, falling short of the anticipated Rs 304 crore.
Analysts expressed optimism regarding Blinkit’s expansion after the company revised its dark-store goal to over 3,500 by March 2027, up from the previous target of 3,000.
Brokerage Ratings
UBS, Jefferies, and JPMorgan kept their bullish outlook, with Jefferies and JPMorgan increasing their price targets. Meanwhile, Macquarie retained an Underperform rating, citing valuation concerns despite strong operational performance.
Blinkit’s average order value rose by 79%, while the quick commerce segment’s revenue grew 94% to Rs 19,152 crore. Food delivery revenue advanced 37% to Rs 3,396 crore, with net order value up 21%.
Financial Performance
Net profit increased 92.3% to Rs 125 crore, missing the forecast of Rs 304 crore, while EBITDA reached Rs 752 crore, below the expected Rs 776 crore.
The EBITDA margin stood at 3.1%, under the projected 3.3%, though it improved from 1.8% in the prior year. Leadership also set an ambitious target of 5,000 dark stores by March 2028, following the revised 3,500 goal for March 2027.
Jefferies affirmed a ‘Buy’ recommendation and lifted its target to Rs 430 from Rs 415, citing faster Blinkit store openings and stronger cost efficiency. JPMorgan also kept an ‘Overweight’ stance, raising its price target to Rs 420 from Rs 390.
Outlook
Investment banks anticipate accelerated store growth and quick-commerce expansion, though they will monitor the trade-offs between reinvestment, profitability, and competition. UBS expects dark-store additions to gain momentum in the near term, while JPMorgan forecasts rising margins in quick commerce despite rapid scaling.
Eternal Ltd. remains optimistic about maintaining at least 20% annual growth in food delivery while stabilizing margins over the next one to two years.
