Eternal Q2 results: Revenue expected to rise upto 50% YoY, Key focus on Blinkit’s growth and profitability

Eternal Ltd, the parent company of Zomato and Blinkit, will announce its quarterly earnings on Thursday, October 16, after market hours. The company is expected to report mixed quarterly earnings.

Experts believe that Eternal could report revenue of between ₹6,750 crore and ₹7,220 crore during the September quarter, representing an increase of 41–50% year on year. However, revenue could see a marginal drop compared to the previous quarter. The company registered revenues of ₹4,799 crore in Q2 FY25 and ₹7,167 crore in the June quarter.

Eternal's net profit could decline by 58–61% year on year to ₹68–73 crore, while it may rise by 172–190% sequentially. Eternal reported a net profit of ₹176 crore in Q2 FY25, compared to ₹25 crore in the previous quarter. Experts believe that the company's improved profitability during the quarter is likely to be driven by the rapid addition of stores to the Blinkit business and the change to an inventory-led model.

During the results announcement, Eternal investors will be closely watching key operating metrics, particularly the gross order value (GOV) of its food delivery business, which is expected to show double-digit growth. The Blinkit segment is also expected to report a significant increase in GOV, reflecting its ongoing success in the quick commerce sector.

Investors will also pay close attention to management’s commentary on the profitability of the quick commerce business, the competitive landscape and the company's growth outlook for the coming quarters.

Ahead of the Q2 result announcement, Eternal shares are trading over 1.1% higher at ₹358 on Thursday, October 16. It is among the top NIFTY50 performers so far this year, with YTD return of over 27%, outperforming the benchmark NIFTY50 index, which delivered 6.9% during the same period.

Technical view

Eternal is showing strong upward momentum, with the stock trading near record highs following a sustained breakout above the previous resistance zone of ₹280–₹300. It is forming higher highs and higher lows, supported by the 21-week EMA (₹304) and the 50-week EMA (₹271), both of which continue to slope upwards, a clear sign of strength.

However, as the stock approaches uncharted territory around ₹350–360, profit- booking or sideways consolidation cannot be ruled out. Staying above ₹340 would maintain the current momentum, while a dip towards ₹300–₹310 could be a healthy retracement.

Options build-up

Options strategy for Zomato

If you expect volatility to increase, 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 Zomato's (Eternal) price moves significantly in either direction, exceeding the ±5.8% 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 Zomato's (Eternal) price remains relatively stable within a ±5.8% range.

For those with a directional bias, spreads offer a more targeted approach. With a support zone of ₹340, traders with a bullish view might consider a bull put spread, while those expecting a downside break can look for a bear call spread.