Eternal share price zooms nearly 9%, hits 52-week high

Eternal’s (formerly Zomato) stock is sizzling again. The company just posted a jaw-dropping 70 per cent jump in revenue for Q1 FY26, thanks largely to its quick commerce play, Blinkit. The market cheered, pushing the stock to a fresh 52-week high of Rs 311.60. But with profits shrinking and costs piling up, the rally comes with a side of caution.

What’s cooking

Eternal’s Q1 results were a tale of two extremes:

• Revenue came in at Rs 7,167 crore, up 70 per cent YoY, its best jump since the IPO days.
• Net profit? Just Rs 25 crore, down nearly 90 per cent from last year, weighed down by Blinkit’s aggressive expansion.
• Blinkit has officially overtaken Zomato’s core food delivery in net order value, making quick commerce the new growth engine.

Why the hype?

Three reasons why Zomato (or rather Eternal) is on investor radar:

• Blinkit blitz: From being the underdog to now driving the majority of the top line, Blinkit’s rise has been fast and furious.
• Street support: Morgan Stanley raised its target to Rs 320, saying there’s ‘limited dilution risk’ and strong margin potential.
• Category dominance: In India’s still-nascent quick commerce space, Eternal looks like a first mover with muscle.

But the flip side? Sky-high costs, thin margins, and a valuation that would make even high-growth tech stocks blush.

The bottom line

Zomato (Eternal) is evolving, from a food delivery pioneer to a serious player in quick commerce. The topline looks great. But until Blinkit stops bleeding and profit starts compounding, this high-flying stock will remain priced for perfection.

Quick stat check

Value Research Online ratings

• Overall: 2/5
• Quality: 3/10
• Growth: 5/10
• Valuation: 2/10
• Momentum: 7/10

Our opinion

Eternal, like any other stock, sees its share price move every day. But wealth isn’t built in days. It’s built over the years. That’s why long-term investing, not short-term trading, is the real recipe for financial freedom.

Even SEBI has said it: 91 per cent of traders lose money. Why? Because traders react.

So, take a long-term view, instead. Ask the right question: Can Eternal be a compounding machine over the next 10 years?

Our analysts have done the groundwork, the deep-dive, the number-crunching. Find out if Eternal makes it to Value Research Stock Advisor’s long-term recommendation list.

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