Eternal Q4 results: Revenue and profit may surge over 200% YoY driven by Blinkit growth; key focus on profitability

Eternal, the parent company of Zomato and Blinkit, will announce its March quarter earnings on Tuesday, April 28 after market hours. The company is expected to report another robust quarterly earnings.

Experts believe that Eternal could report substantial growth in revenue and net profit during the March quarter, aided by a steady rise in its core food delivery business and the rapid growth of its Blinkit business.

The company’s revenue could be in the range of ₹17,650 to ₹17,950 crore during the fourth quarter, up 202% to 208% YoY driven by higher sales in the Blinkit business. On a sequential basis, Eternal revenue could jump by 8% to 10%. The company registered revenues of ₹5,833 crore in Q4FY25 and ₹16,315 crore in the previous quarter.

Eternal net profit could see a double-digit rise of 220% to 255% YoY to range between ₹125 to ₹140 crore, while it may see 22% to 37% rise on a sequential basis. Eternal reported a net profit of ₹39 crore in Q4FY25 and ₹102 crore in the previous quarter.

During the earnings announcement, Eternal investors will look forward to management commentary on overall business outlook, rising competition and quick commerce business profitability. Key metrics like gross merchandise value (GMV) for the food delivery business which is likely to see double-digit growth. Meanwhile, the net order value of the Blinkit business could see a substantial rise of 90 to 100% YoY and 9 to 11% sequentially. Other key metrics, like new dark store additions for the Blinkit business, will also be closely tracked.

Ahead of the Q4 result announcement, Eternal shares are trading 1.8% lower at ₹250 apiece on NSE. So far this year, Eternal shares are down over 8%.

Technical outlook

Eternal remains in a broader downtrend, but the recent price action suggests a short-term recovery from the ₹213 low, with the stock forming higher lows over the past few weeks. It is currently trading near the ₹260–₹265 zone, which is a key resistance area aligned with the 200-day EMA and prior supply levels, and the price is showing signs of stalling here.

On the downside, immediate support is seen around ₹244, which coincides with the 20-day EMA and a recent breakout level, while ₹213 continues to act as a strong base. Overall, the setup points to a neutral-to-mildly bullish bias in the short term.

Options outlook

The open interest data for Eternal (Zomato) heading into the 26 May expiry indicates at-the-money (ATM) strike stands at 255, with both call and put options priced at ₹27. This suggests that the options market is pricing in an expected move of roughly ±10.7% 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 ±10.7% 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 ±10.7% range.

For a directional view, traders can monitor the range of ₹265 and ₹244. 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. The information is only for educational purposes. We do not recommend any particular stock, securities or strategies for trading. The securities mentioned in this article are purely illustrative and not recommendations. Investors are advised to do their own research before investing.