Eternal share price gains up to 5% after Q4 earnings; top takeaways and analysts' views

The stock was on investors' radar following the company's encouraging set of financial results for the quarter and year ended March 31, 2026.

Earnings highlights

The company on Tuesday reported a multi-fold jump in its consolidated net profit to ₹174 crore for the fourth quarter (Q4 FY26), supported by higher revenue growth.

The company had posted a net profit of ₹39 crore a year ago, according to a regulatory filing.

Eternal Founder Deepinder Goyal, in a letter to shareholders, said the company took 18 years to achieve an annual net order value (NOV) of USD 10 billion, but the doubling to USD 20 billion will take less than two years, and the company expects to "reach USD 1 billion of adjusted EBITDA, hopefully by FY '29".

Goyal also dismissed concerns that artificial intelligence chat interfaces could disrupt the company's food delivery (Zomato) and quick commerce (Blinkit) businesses, arguing that "consumer behaviour is the hardest thing in the world to change" and "nowhere close to disrupting our business".

"People who order dinner on Zomato four times a week, or groceries on Blinkit every other day, are not going to reroute those habits through a chat window. The people who are excited about experimenting with ordering food through AI assistants are a real but early segment and currently nowhere close to disrupting our business."

What the company said about the LPG shortage

The Eternal founder also said the recent LPG shortage in India had "no meaningful impact yet".

"Some restaurants in affected pockets did see temporary disruption, but platform-level throughput wasn't impacted," Goyal stated in the letter.

In the fourth quarter, Eternal's revenue from operations zoomed to ₹17,292 crore from ₹5,833 crore seen in the year-ago period.

Its total expenses surged to ₹17,406 crore from ₹6,104 crore logged in the comparable January-March quarter of the preceding financial year.

Full fiscal year show

For the full financial year 2025-26, Eternal posted a net profit of ₹366 crore. The company had recorded a net profit of ₹527 crore during the preceding financial year.

On August 27, 2024, Eternal Limited completed the acquisition of Orbgen Technologies Private Limited and Wasteland Entertainment Private Limited (WEPL), operating in the movie ticketing and events businesses, respectively, from One97 Communications Limited.

"Due to this acquisition, the results for the year ended March 31, 2026, and the year ended March 31, 2025, are not comparable to that extent," Eternal stated.

What the CEO, Albinder Singh Dhindsa, said

Albinder Singh Dhindsa, Group CEO, Eternal, stated that the growth rates for the quick commerce business are "now naturally moderating off a much larger base".

He observed that quick commerce today is still concentrated in the top 15-20 cities and in a relatively narrow set of categories. The headroom for growth on geography, assortment, and frequency is substantial.

However, Dhindsa said high competition can have an adverse impact in certain periods of time, like the one we are going through now, where aggressive discounting is leading to poor-quality growth centred around select low-margin SKUs (stock keeping units).

CFO statement

Akshant Goyal, Chief Financial Officer, Eternal, stated in the letter that the food delivery (Zomato) NOV growth of 18.8% year-on-year (YoY) continues to improve for the third quarter in a row, inching closer to its long-term expectation of over 20%.

"Quick commerce (Blinkit) NOV growth remains strong at 95.4% y-o-y (8.2% q-o-q). 216 net new stores were added in the quarter, taking the total store count to 2,243 stores as at the end of the quarter," Akshant Goyal stated.

Other details

Eternal said it is entering into an asset transfer agreement with its subsidiary Wasteland Entertainment Private Limited to transfer the technology stack of the District platform, along with its identified employees, for an aggregate consideration of over ₹24.19 crore.

WEPL, a wholly-owned subsidiary of the company, is engaged in the business of providing online/offline ticketing services for events and other activities, booking of slots for sports facilities, and other related ancillary services to event organisers.

What leading analysts said

Analysts remain constructive on Eternal following its Q4 performance, highlighting strong traction in quick commerce and improving profitability despite elevated competitive intensity.

CLSA noted that Blinkit’s net order value (NOV) surged 95% year-on-year, broadly in line with estimates, while order growth came in at 93.3% YoY—around 4% ahead of expectations.

Monthly transacting users (MTUs) jumped 98.5%, aided by lower customer acquisition costs.

Despite a 4% sequential decline in average order value (AOV), contribution margins remained flat on a quarter-on-quarter basis, largely due to seasonal factors.

CLSA said the strong growth and improving profitability reinforce confidence in Blinkit’s business model even amid heightened competition.

It also flagged continued acceleration in food delivery in NOV, driven by an expanding user base and improved affordability.

Jefferies highlighted that Eternal delivered further improvement in quick commerce profitability despite intense competition, which it termed commendable. While growth remained modest due to seasonality, management has guided for a nearly 60% CAGR over the next three years, with EBITDA margins in the 5–6% range.

Jefferies also noted that the food delivery segment remained unaffected by gas supply concerns and posted strong NOV, with a positive outlook ahead.

Additionally, the company is targeting $1 billion in consolidated EBITDA by FY29 and sees artificial intelligence as a key enabler.

Goldman Sachs has also maintained a positive stance, pointing to stronger-than-expected momentum in Blinkit. The financial services firm said Q4 trends suggest underlying NOV growth in quick commerce is closer to mid-teens sequentially, rather than high single digits, with scope for margin expansion despite competition.

It expects Blinkit’s NOV growth to accelerate to 15% quarter-on-quarter (around 80% year-on-year) by June 2027, driven by higher AOV, more operating days, and seasonal tailwinds.

EBITDA margins are also projected to turn positive at around 0.6% of NOV. In food delivery, Goldman Sachs expects 19% YoY NOV growth in Q1FY27, along with a 20 basis point sequential improvement in EBITDA margins, supported by recent platform fee hikes.