Eternal share price fell as much as 0.40% on NSE in Thursday’s trading session despite the company reported strong set of numbers during the April-June quarter results FY27.
Eternal shares opened in green at ₹289.85 apiece today, as compared to previous close of ₹294.40 on Wednesday. However, the stock pared gains in early morning session to touch an intraday low of ₹283.20 on 23 July.
Eternal Q1 results 2026
Zomato’s parent company, on Wednesday, July 22, reported a 268% year-on-year (YoY) rise in consolidated net profit to ₹92 crore for the April-June quarter of FY2026-27 (Q1FY27). However, on a sequential basis, the company’s profit declined 47.1% from the previous quarter.
For comparison, Eternal had posted a net profit of ₹25 crore in the corresponding quarter last year and ₹174 crore in the January-March quarter (Q4FY26).
The company’s consolidated revenue from operations surged 182% YoY and 16.9% quarter-on-quarter (QoQ) to ₹20,211 crore. The sharp increase was primarily driven by the transition to the 1P model in its quick commerce business, under which revenue now reflects the full value of goods sold, unlike Q1FY26, when it mainly comprised marketplace commission.
Eternal had reported revenue of ₹7,167 crore in Q1FY26 and ₹17,292 crore in Q4FY26.
The food delivery segment reported a robust 33% year-on-year increase in adjusted revenue to ₹3,537 crore. Its Net Order Value (NOV) also registered strong double-digit growth of 20% YoY, reaching ₹10,769 crore. Meanwhile, adjusted EBITDA for the segment rose by ₹155 crore to ₹606 crore during the quarter.
The quick commerce business delivered strong growth, with NOV surging 86% YoY to ₹17,132 crore. Adjusted revenue soared 553% to ₹15,664 crore, while adjusted EBITDA improved by ₹264 crore to ₹102 crore.
In the going-out business, adjusted revenue climbed 54% year-on-year, although adjusted EBITDA remained in the red at a loss of ₹65 crore. However, NOV grew a healthy 60% YoY to ₹3,218 crore.
The Hyperpure segment posted a 55% YoY decline in adjusted revenue to ₹1,034 crore. Despite the revenue drop, adjusted EBITDA turned positive, improving by ₹24 crore from a year ago to ₹6 crore for the quarter.
Eternal share price – Should you buy or sell after Q1 results 2026?
Brokerage firm Motilal Oswal has reiterated its ‘buy’ rating with a target price of ₹400 per share, seeing an upside potential of up to 41%.
“We continue to factor in management’s long-term growth trajectory of 60%+ NOV growth and USD1b EBITDA by FY29, led by gradual margin expansion through store maturity and operating leverage. We expect Eternal to report PAT margins of 2.2%/3.0% in FY27/28E. Our TP of INR400 implies a 41% upside from the current price. We reiterate our BUY rating,” the brokerage firm said.
Meanwhile, brokerage firm JM Financial has also maintained a ‘buy’ rating on the Eternal stock; however, it has lowered the target price from ₹440 to ₹400. Remaining bullish on the stock, the brokerage firm sees an upside potential of up to 40.8%.
“We broadly maintain our FD NOV estimates over FY27–29E, while increasing Adjusted EBITDA by ~2–3% driven by better-than-expected margin in Q1. We continue to value Eternal at 65x Jun’28E EPS and revise our TP to INR 400. Eternal remains our preferred pick in the listed Internet space given its superior execution, leadership across hyperlocal commerce and long runway for profitable growth. Reiterate BUY,” the firm said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
