Eternal shares surge 4% after strong Q1 show; analysts predict key tailwinds for FY27

Online food delivery and quick commerce platform parent Eternal shares surged 4% during the market hours on Thursday, July 23, as investors focused on the company’s strong financial performance in Q1 results, while analysts predict growth tailwinds for the fiscal year 2026-27.

Shares of Eternal surged 4.1% to its intraday high of ₹296.15 on Thursday’s market, compared to ₹284.40 at the previous stock market close, according to NSE data. The company announced its earnings report ahead of the closing bell on July 22.

At 12:44 pm on Thursday, Eternal shares were trading 1.5% higher at ₹288.80 on the stock exchange.

Eternal’s management commentary estimated that the company is expected to deliver quick commerce steady-state margins at the upper end of the 5% to 6% range, as the firm aims to deepen its presence in next-tier cities in India.

Experts predict that improving margins, operating leverage, quick commerce business growth, and expansion plans, among other key factors to power Eternal’s financial performance in the financial year 2026-27.

Here’s what analysts say

Analysts from CLSA said that Eternal’s Zomato business growth accelerated to its fastest pace in six quarters, with limited impact from emerging no-commission platforms, while newer businesses continue to expand the firm.

“1QFY27 reinforces the view on its strong execution, with both quick commerce (QC) & food delivery seeing growth acceleration and it delivering better profitability despite elevated competition,” said the experts.

Experts from leading US-based investment firm, Morgan Stanley, said that Eternal is expected to continue delivering steady momentum in its food delivery and quick commerce net order value (NOV), as discounts are “unlikely to threaten or disrupt” the operations.

Overall, analysts have agreed that the company’s management commentary on competition highlights greater confidence that Eternal is positioned to differentiate itself from its peers in its industry.

“April to June quarter strength reinforces confidence in FY27 estimates as competition seems stable now,” said HSBC analysts, predicting compounding potential in the future based on improving margins and operating leverage of the firm.

How did Eternal perform in June quarter results?

Eternal posted a 268% surge in its consolidated net profit after tax (PAT) to ₹92 crore in the April to June quarter results for the financial year 2026-27, in comparison with ₹25 crore profit in the same period a year ago.

As per the NSE filings, the company’s revenue from core operations advanced 182% to ₹20,211 crore in the first quarter, compared to ₹7,167 crore in the same quarter of the previous year.

On the EBITDA margins front, Eternal recorded a 125 basis point expansion to 2.94% in the June quarter, from 1.69% in the same period a year earlier. At an operational level, the earnings before interest, tax, depreciation and amortisation recorded a multi-fold growth to ₹594 crore, from ₹115 crore a year ago.

(Data collected from the company's NSE filings on July 22)

Eternal share price history

Eternal shares have delivered more than 133% returns to their investors in the last five years, and over 266% gains on their investment in the last three years, according to NSE data.

However, the company stock has lost 3% in the past one-year period, as per the exchange data.

On a year-to-date (YTD) basis, Eternal share price has risen 3.5% and has risen over 13% in the last one-month period. In the last five trading sessions, the company stock has gained 2.5% on the Indian stock market.

The company’s market capitalisation (m-cap) was at over ₹2.78 lakh crore as of the trading session on Thursday, July 23, 2026.