Eternal Shares Fall 4% After Q2 Profit Decline, But Brokerages Remain Bullish

Shares of Eternal dropped over 4% to INR 333.75 during the intraday trading session on the BSE today, a day after the foodtech giant reported a 63% YoY decline in its consolidated net profit in Q2 FY26.

Zomato and Blinkit parent Eternal posted a net profit of INR 65 Cr during the quarter as against INR 176 Cr in Q2 FY25. On a sequential basis, the company’s profit rose 160% from INR 25 Cr.

Meanwhile, revenue jumped 183% to INR 13,590 Cr in Q2 FY26 from INR 4,799 Cr in the year-ago quarter. On a QoQ basis, operating revenue grew 90% from INR 7,167 Cr.

At 11:35 IST, the stock was trading 2.3% lower at INR 340.50 on the BSE. Eternal’s market capitalisation stood at INR 3.28 Lakh Cr (about $37Bn) and more than 4.4 Cr shares had exchanged hands.

Yesterday, the company also said that its wholly owned subsidiaries Blink Commerce Private Ltd (BCPL) and Blinkit Foods Ltd (BFL) have entered into a business transfer agreement wherein the quick food service business operated under the brand ‘Bistro by Blinkit’ will be transferred from BCPL to BFL for internal restructuring purpose.

Brokerages Positive On Eternal

Despite the YoY decline in its profit, Eternal’s sequential profit increase and top line expansion reflected steady growth. The company’s consolidated adjusted EBITDA declined 32% YoY to INR 224 Cr but rose 30% from INR 172 Cr in Q1 FY26.

On a consolidated level, Eternal’s B2C NOV (net order value) grew 57% YoY and 15% QoQ to INR 23,164 Cr.

Meanwhile, its quick commerce arm Blinkit’s adjusted revenue zoomed 756% to INR 9,891 Cr in Q2 FY26 from INR 1,156 Cr in the same period last year. While the exponential increase was due to Blinkit’s transition to an inventory-led model, where sales now include the full value of goods sold rather than just marketplace commissions, its adjusted EBITDA loss declined 4% sequentially to INR 156 Cr.

Following the results, brokerages HSBC and CLSA maintained an ‘Outperform’ rating on the company, while Morgan Stanley maintained an ‘Overweight’ rating.

Other brokerages like Goldman Sachs, Emkay, Nuvama, Nomura and Elara maintained a ‘Buy’ rating for the company.

Notably, Emkay raised the target price (TP) to INR 430 from INR 330 earlier. Nuvama also raised the TP to INR 400 from INR 320, while Goldman gave a new target price of INR 390 against INR 360 earlier.

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