Key Takeaways
- Eternal posts 17% revenue growth with strong Blinkit performance
- Blinkit drives order growth and rapid network expansion
- Brokerages retain Buy ratings with a higher target price outlook
Eternal shares gained nearly 1% following the release of its Q1FY27 results, with the company reporting strong growth across its quick commerce and food delivery businesses. The quarterly performance has brought renewed attention to the stock, supported by updated brokerage outlooks.
Strong Revenue Growth Across Segments
Eternal Shares reported total revenue of ₹20,210 crore for the quarter, marking a 17% increase on a sequential basis. Earnings before interest, taxes, depreciation, and amortisation stood at ₹590 crore, compared to ₹120 crore in the same period last year. Profit after tax for the quarter was ₹90 crore.
The food delivery segment continued to show steady growth. Revenue from food delivery reached ₹3,100 crore, reflecting a 37% increase year on year. Monthly transacting users in this segment stood at 27.2 million, up 19% compared to the previous year.
These numbers indicate consistent demand growth in food delivery, supported by an expanding user base. The segment remains a key contributor to the company’s overall revenue mix.
Blinkit Drives Expansion And Order Growth
Blinkit, the company’s quick commerce business, remained the primary growth driver during the quarter. Revenue from Blinkit increased 18% on a sequential basis, while gross order value rose 86% year on year to ₹17,130 crore.
The platform recorded 331 million orders during the quarter, reflecting an 87% increase compared to the previous year. Monthly transacting users for Blinkit reached 31.8 million, highlighting continued customer adoption.
The company also expanded its physical network by adding 200 new stores, taking the total store count to 2,443 by the end of June. This expansion supports higher order volumes and improved delivery efficiency.
Investment in infrastructure remained elevated, with continued spending on warehouses and store expansion. These investments are aimed at supporting future growth and improving operational efficiency.
Brokerage Outlook And Future Metrics
Brokerage firms have maintained positive views on the stock following the Q1 results. One domestic brokerage retained a Buy rating with a target price of ₹400, indicating a potential upside of around 41%. Another global brokerage also maintained a Buy rating and increased its target price to ₹350, implying an upside of about 23%.
Analysts highlighted that competition in quick commerce reached peak intensity during the quarter but has now become more stable and predictable. The company expects aggressive discount-driven strategies in the sector to moderate over time.
Eternal Shares has also revised its long-term margin outlook. It now expects earnings before interest, taxes, depreciation, and amortisation margin to reach 6% of net order value, compared to earlier expectations of 5% to 6%.
Future growth is expected to be supported by improvements in operational efficiency, including larger store formats, better inventory management, and reduced working capital requirements. Strong growth in Blinkit’s net order value is projected over the next 2 financial years.
However, analysts note that key variables to monitor include the pace of profitability improvement in quick commerce and sustained growth in the food delivery segment.
For Indian entrepreneurs and business owners, the results highlight the rapid expansion of quick commerce and the importance of scale, logistics, and user growth in driving digital platform businesses.
Check out Business Viewpoint Magazine for the latest updates in business, technology, and innovation.
