Synopsis:- With MTU penetration already above 50%, growth may mature, though market share gains continue amid rising competition. Target price of ₹350 implies 48% upside. Quick commerce dominates at 75%, while NOV surged 121% YoY, indicating strong momentum despite near-term pressures.
The Indian consumer services sector remains a key growth engine, contributing around 56–58% of GDP through private consumption and services‑driven demand in FY 2026. Spending patterns show quarterly consumer expenditure exceeding ₹30 trillion, underpinned by rising incomes, urban premiumisation, and a gradual recovery in rural demand.
With a market capitalization of Rs 2,27,941.28 crore, the shares of Eternal Ltd closed at Rs 236.20 per share, decreased around 1.69 percent as compared to the previous closing price of Rs 240.25 apiece.
TAM Growth Concerns
As per the brokerage, concerns around Blinkit’s total addressable market appear overstated from a valuation perspective. However, with MTU (monthly transacting users) penetration already exceeding 50% of the TAM, growth could gradually mature over the next one to two years, indicating a possible slowdown in user addition despite a strong existing base.
Goldman Sachs expects Blinkit to continue gaining market share from Swiggy, although recent growth may have been impacted by rising competition. Increased intensity from both new entrants and existing players has created near-term pressure on expansion and overall performance.
Despite this, the brokerage does not believe competition will significantly restrict margin expansion. It highlighted that the December 2025 quarter already showed early signs of improvement. With multiple operational levers in place, the company is seen as capable of managing cost pressures while sustaining profitability going forward.
Meanwhile, growth visibility remains intact, with expectations of low double-digit sequential NOV growth in Q4FY26. This is likely to be supported by mid-teen increases in order volumes, although slightly lower than the 14% growth recorded in Q3, reflecting a more normalized but still steady expansion trajectory.
Goldman Sachs has set a target price of ₹350, implying a 48% upside. The call reflects strong confidence in growth prospects, supported by improving fundamentals and long-term expansion potential.
Revenue Segmentation
The revenue breakdown shows Quick Commerce dominating with Rs 12,256 crore, accounting for 75.12% of total revenue. India’s food ordering and delivery contributes Rs 2,676 crore (16.40%), while Hyperpure supplies add Rs 1,070 crore (6.56%). Smaller segments like Going Out ( Rs 300 crore, 1.84%) and others ( Rs 13 crore, 0.08%) have a limited impact.
The company made a key profitability milestone in Q3FY26, with quick commerce and Hyperpure turning adjusted EBITDA positive. Quick commerce NOV grew 121% YoY, despite GST and seasonality headwinds. Food delivery growth accelerated to 16.6% YoY, delivering a record 5.4% adjusted EBITDA margin. While district losses increased due to category investments, management expects sequential improvement toward breakeven over the next 4–6 quarters.
Eternal Ltd is a consumer-focused digital platform company with a growing presence in quick commerce and online delivery services. Through its platforms, it caters to everyday consumer needs with speed and convenience. The company is expanding its reach across urban markets, supported by technology, logistics, and evolving customer preferences.
Written by Abhishek Singh
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