Home / Business and Economy / Eternal Surges on Robust Q4 Results: Profit Soars 346%
Eternal Surges on Robust Q4 Results: Profit Soars 346%
29 Apr
Summary
- Net profit surged 346% year-on-year to ₹174 crore in Q4 FY26.
- Blinkit reported a positive EBITDA of ₹37 crore, a significant improvement.
- Brokerages maintain 'Buy' ratings with target prices ranging up to ₹380.
Eternal's stock saw a notable surge in early trade on Wednesday, reacting positively to the company's fourth-quarter financial results for FY26. The company reported a substantial 346% year-on-year increase in net profit, reaching ₹174 crore for the March quarter.
This profit jump was primarily fueled by strong growth in Blinkit's net order value (NOV) and enhanced operating leverage. Blinkit's NOV climbed an impressive 95% year-on-year to ₹14,386 crore, with the quick commerce service achieving a positive adjusted EBITDA of ₹37 crore, a turnaround from the previous year.
The food delivery business, under the Zomato brand, also contributed positively, with revenue growing 33% to ₹2,737 crore and NOV increasing by 19% year-on-year. The company anticipates its food delivery segment to continue growing at over 20% annually, with stable margins.
Looking ahead, Blinkit's NOV growth is projected to exceed a 60% CAGR over the next three years. Despite increased competition, analysts remain optimistic. Nuvama Institutional Equities maintained a 'Buy' rating, setting a price target of ₹380, while Motilal Oswal Financial Services reiterated a 'Buy' with a ₹340 target, highlighting Blinkit as a significant opportunity.
Equirus Securities also maintained a 'Long' call, adjusting its target price to ₹370 for September 2027. These assessments reflect confidence in Eternal's diversified business model and its potential for sustained profitability and market disruption.
