Eternal Q1 results: Net profit could surge multifold due to low base and Blinkit business growth

Eternal Ltd, the parent company of Zomato and Blinkit, will announce its June quarter earnings on Wednesday, July 22, after market hours. The company could report yet another quarter of robust earnings.

According to experts, Eternal could report substantial growth in revenue and net profit during the June quarter, aided by a steady rise in the core food delivery business and rapid growth in the Blinkit business. Meanwhile, the lower base of last year could aid profitability.

The company’s revenue could be in the range of ₹17,950 to ₹18,250 crore during the first quarter of FY27, up 150% to 155% YoY, driven by higher sales in the Blinkit business. On a sequential basis, Eternal revenue could jump by 3% to 5%. The company registered revenues of ₹7,167 crore in Q1FY26 and ₹17,292 crore in the previous quarter.

Eternal net profit could see a substantial rise of 900% to 1120% YoY to range between ₹250 to ₹305 crore, while it may see a 40% to 70% rise on a sequential basis mainly due to the low base of last year. Eternal reported a net profit of ₹25 crore in Q1FY26 and ₹174 crore in the previous quarter.

During the results announcement, Eternal investors will look forward to management commentary on the overall business outlook, rising competition, and the profitability of the quick commerce business. Key metrics like gross merchandise value (GOV) of the food delivery business as well as net order value (NOV) of the Blinkit business could be tracked closely. Other key metrics like new dark store additions for the Blinkit business will also be tracked.

Ahead of the Q1 result announcement, Eternal shares closed flat, up 0.2% at ₹287. Eternal stock has gained over 8% so far this month, marking the fourth consecutive month in positive territory. However, the stock has gained just 3.07% so far this year.

Technical outlook

ETERNAL remains in a strong bullish trend, with price holding above the 20-day and 50-day EMAs. The recent consolidation near ₹283.55 appears constructive after the sharp breakout. The DMI setup remains positive, while ADX at 37.27 indicates a strong underlying trend. A sustained move above ₹290–295 can reopen the path towards ₹303.80. On the downside, ₹283.55 is the immediate support, followed by ₹264.80.

Options outlook

The open interest data for Eternal (Zomato) heading into the 28 July expiry indicates at-the-money (ATM) strike stands at 290, with both call and put options priced at ₹17.7. This suggests that the options market is pricing in an expected move of roughly ±6.2% up to the expiry. Given this implied volatility, traders looking to benefit from a potential sharp move in either direction may consider volatility-based strategies.

Options strategy for Eternal (Zomato)

For traders anticipating a rise in volatility, a long straddle could be an effective approach. This strategy involves buying an at-the-money (ATM) call and put option with the same strike price and expiry date. It generates a profit when Eternal (Zomato's) price moves significantly in either direction, exceeding the ±6.2% range.

Conversely, if you anticipate minimal price movement or volatility, a short straddle might be more suitable. This strategy involves selling both an ATM call option and an ATM put option with the same strike price and expiry. It generates profits if Eternal (Zomato's) price remains relatively stable within a ±6.2% range.

For a directional view, traders can monitor the range of ₹283 and ₹303. A bull put spread involves selling a put option at a higher strike and buying another at a lower strike. In contrast, a bear call spread involves selling a call at a lower strike and buying one at a higher strike.

Disclaimer:

Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. We do not recommend any particular stock, securities, or trading strategies. The securities quoted are exemplary and not recommendatory. The stock names mentioned in this article are purely to show how to do an analysis.