Synopsis: Jefferies maintains a Buy on Eternal Limited, citing leadership continuity, strong execution at Blinkit, and long-term quick-commerce growth, despite near-term volatility, competition, and investor concerns after Q3 results.
This Large-cap Stock, engaged in operating e-commerce platforms for food delivery via Zomato, quick commerce through Blinkit, B2B supplies with Hyperpure, and going-out services like dining and events, jumped 4 percent after Jefferies gave a target of Rs. 480, which has an upside potential of 89.31 percent.
With a market capitalization of Rs. 2,54,190.24 crores, the share of Eternal Limited has reached an intraday high of Rs. 263.70 per equity share, rising nearly 4 percent from its previous day’s close price of Rs. 253.55. Since then, the stock has retreated and is currently trading at Rs. 263.40 per equity share.
What is the News?
Jefferies, a prominent brokerage firm, has recommended a “Buy” call on Eternal Limited with a target price of Rs. 480 per share, indicating an upside potential of 89.31 percent from its previous day’s close price of Rs. 253.55.
Jefferies has maintained a Buy rating on Eternal despite the stock falling around 10 percent after Q3 results. The decline was driven largely by investor concerns around the timing of a leadership change during a high-growth phase. There were also worries about the return of unvested ESOPs and uncertainty around break-even timelines, especially amid intense competition in quick commerce.
Founder Deepinder Goyal clarified that the leadership transition was voluntary and influenced by Indian market sensitivities, even though he could have continued in the role. While such changes often raise short-term concerns, Jefferies believes the move does not weaken the company’s long-term strategy or operational focus.
Importantly, Deepinder’s continued role as Vice Chairman and the elevation of Albinder Dhindsa strengthen execution at Blinkit. Jefferies sees this leadership continuity, combined with strong execution capability, as supportive of long-term growth, justifying confidence in the target price despite near-term volatility.
Revenue Segment of Q3 FY26:
Eternal Limited derives the majority of its revenue from the quick commerce segment, which contributed Rs. 12,256 crore, accounting for about 75.1 percent of total revenue. India food ordering and delivery generated Rs. 2,676 crore (16.4 percent), while Hyperpure supplies added Rs. 1,070 crore (6.6 percent).
The Going Out segment contributed Rs. 300 crore (1.8 percent), and other residual segments added a marginal Rs. 13 crore (0.1 percent), highlighting quick commerce as the key growth driver.
Company Overview:
Eternal Limited, formerly Zomato, is an Indian technology company headquartered in Gurugram, Haryana. It powers India’s changing lifestyles through an integrated e-commerce ecosystem, connecting users with food delivery via Zomato, quick commerce through Blinkit, B2B restaurant supplies with Hyperpure, and going-out experiences like dining, movies, and events via District.
Founded in 2008 by Deepinder Goyal as a restaurant discovery platform, the company has steadily evolved through strategic expansions and acquisitions. Today, it serves users across hundreds of cities, combining technology, logistics, and commerce to cater to changing consumer lifestyles.
Coming into financial highlights, Eternal Limited’s revenue has increased from Rs. 5,405 crore in Q3 FY25 to Rs. 16,315 crore in Q3 FY26, which has grown by 201.85 percent. The net profit has also grown by 72.88 percent from Rs. 59 crore in Q3 FY25 to Rs. 102 crore in Q3 FY26.
Eternal Limited’s revenue has grown at a CAGR of 69.03 percent over the last three years. In terms of return ratios, the company’s ROCE and ROE stand at 2.66 percent and 1.71 percent, respectively. Eternal Limited has an earnings per share (EPS) of Rs. 0.24, and its debt-to-equity ratio is 0.11x.
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