Eternal (NSE: ETERNAL) Shares Jump 4% After Strong Q1 Results as Analysts Turn Bullish on FY27

Eternal shares jumped as much as 4.5% on July 23, 2026, hitting an intraday high of ₹296.15. The Zomato and Blinkit parent posted Q1 FY27 revenue of ₹20,211 crore, up 182% year-on-year. Consolidated net profit climbed 268% to ₹92 crore, though it fell 47% sequentially. Blinkit turned EBITDA-positive for the first time, swinging from a ₹162 crore loss to a ₹102 crore profit. Brokerages responded with a wave of bullish price target upgrades following the results.

Eternal Results Show Blinkit as the New Growth Engine

Eternal’s (ETERNAL.NS) Q1 FY27 numbers confirm a major shift in its business mix this year. Blinkit generated ₹15,664 crore in revenue, now 77.5% of total operating revenue. That’s a massive jump from just ₹2,400 crore in the same quarter last year.

• Food delivery revenue rose 37% year-on-year to ₹3,100 crore.
• District, the going-out segment, grew 54% to ₹318 crore.
• Hyperpure’s B2B supply revenue reached ₹1,034 crore for the quarter.

Adjusted EBITDA climbed 223% year-on-year to a record ₹555 crore, while profit before tax rose to ₹272 crore from ₹88 crore. Eternal’s diversified model is clearly leaning harder on quick commerce for growth.

Why Eternal Shares Fell Before They Jumped

Eternal shares actually closed down 0.77% at ₹284.40 on results day, July 22, 2026. Net profit of ₹92 crore missed Street estimates of roughly ₹258 crore, triggering initial disappointment. Higher tax expenses drove much of the sequential profit decline from ₹174 crore in Q4 FY26.

Sentiment reversed the next trading session sharply, though, once brokerages digested the underlying detail. Shares later pared gains to trade 3.5% higher at ₹293.35 by 11:30 AM IST on July 23. That move valued Eternal at approximately ₹2.83 lakh crore, or roughly $29.3 billion.

Brokerages Issue a Wave of Bullish Calls

At least 27 brokerages issued ‘Buy‘ or equivalent ratings on Eternal following the Q1 FY27 results. Price targets now range from ₹350 to a Street-high ₹506, implying up to 75% upside.

• CLSA set the highest target at ₹506, citing improving Zomato and Blinkit profitability.
• Jefferies maintained Buy with a ₹415 target, citing quality growth over discounting.
• JPMorgan kept its Overweight rating with a ₹390 target on strong segment growth.

Nomura raised its target to ₹350 from ₹340, while Citi lifted its target to ₹385 from ₹360. Motilal Oswal, Axis Capital, JM Financial, Emkay Global, and Elara Securities each set targets between ₹400 and ₹405.

What Drove the Bullish Analyst Shift

Analysts specifically flagged tighter inventory control at Blinkit as a key margin driver this quarter. That discipline lowered net working capital requirements while improving scale benefits and supply chain efficiency.

Eternal Q1 FY27 Revenue Jumps to Rs 20,211 Crore, Net Profit Reaches Rs 92 Crore

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— Ascendants (@AscendantsDotIn) July 23, 2026

ICICI Securities highlighted 20% year-on-year net order value growth in food delivery as a positive surprise. Management reiterated its long-term target of 60% NOV growth alongside $1 billion in EBITDA by FY29. Nomura called that target “increasingly achievable” given the current trajectory across Eternal’s segments.

How Eternal Compares to Sector Peers

Eternal’s rally stands out against a mixed session for other consumer internet stocks in India. Swiggy, its closest quick-commerce and food delivery rival, traded lower by 2.36% the same day. Nykaa (FSN E-Commerce Ventures) and Paytm-parent One97 Communications also posted declines during Wednesday’s session. Eternal’s outperformance reflects investor confidence that its profitability path is now clearer than peers’.

The Bottom Line

Eternal’s 4% rally shows how quickly sentiment can shift once analysts look past headline profit misses. Blinkit’s turn to EBITDA profitability is the real story behind this quarter’s results, not the tax-driven net profit dip. With 27 brokerages now bullish and targets stretching to ₹506, the Street clearly backs management’s FY29 profitability roadmap. Investors should watch whether Blinkit can sustain margin gains as competition in quick commerce remains intense.

Disclaimer:

The content shared by Meyka AI PTY LTD is for research and informational purposes only. Meyka is not a financial advisory service, and the information provided should not be treated as investment or trading advice.