BoFA Q1 FY27: Meesho, Eternal top AI internet bets

What Bank of America is flagging for Q1 FY27

Bank of America (BoFA) expects Indian internet stocks to report a stable first quarter of fiscal 2026-27, with healthy growth and margins, despite a Middle East conflict-driven fuel price hike. The brokerage’s note, dated June 26, 2026, positions Meesho and Eternal as the most interesting “new-age internet” bets. BoFA’s central argument is that the market has already priced in the easy AI-led cost savings across many companies. It believes the next leg of upside will come from platforms that can use AI to create new revenue streams. Against that backdrop, Meesho is seen as capable of positively surprising on growth and margins, while Eternal is expected to show strong sequential growth and improved margins.

Fuel price risk and why it matters to internet platforms

BoFA’s Q1 preview explicitly factors in the risk of higher fuel costs linked to geopolitical tensions in the Middle East. For internet businesses that depend on logistics and delivery density, fuel is a meaningful operating cost line. The brokerage still expects “healthy growth and margins” for the sector in Q1 FY27, indicating that it does not see the fuel headwind derailing quarter-on-quarter performance across the board. But the note also differentiates among names based on near-term margin sensitivity. That differentiation is most visible in its view on Delhivery.

Meesho: growth and margins seen surprising positively

BoFA expects Meesho to “positively surprise” on both growth and margins in Q1 FY27. Within the preview, Meesho is expected to deliver 33% growth in net merchandise value (NMV). The note also says advertising revenue will continue to improve. While the report does not provide target prices or explicit upside numbers for Meesho in the article text, it frames Meesho as the best positioned for “good AI surprises.” The AI angle, as cited, is not only about automation but about expanding the addressable market and improving monetisation levers.

Vaani: Meesho’s voice AI assistant as a distribution lever

BoFA highlights Meesho’s voice AI shopping assistant, Vaani, as the key product driver behind its “AI surprise” thesis. The report links Vaani’s potential to adoption in Tier-3, Tier-4 and Tier-5 cities, where voice-led usage can be easier than typing for many users. The brokerage’s view is that such a feature can accelerate user growth and widen Meesho’s total addressable market (TAM). In BoFA’s framing, this is a direct route to incremental transactions, rather than only back-end savings. The emphasis, therefore, is on revenue expansion potential through customer acquisition and engagement.

Eternal: sequential momentum despite quick commerce competition

In food delivery platforms, BoFA estimates Eternal will report net order value growth of 17% quarter on quarter. This projection comes “despite high competition in Quick Commerce,” and is attributed mainly to store additions and normal seasonality. BoFA also expects Eternal to post strong sequential growth and improved margins. In the article text, Eternal is described as the parent company of Zomato and Blinkit, and is positioned as BoFA’s other top pick alongside Meesho.

Eternal’s AI monetisation: advertising built on premium demand

BoFA’s growth idea for Eternal is AI-driven advertising. The brokerage links this to Eternal’s access to premium users and relationships with D2C and FMCG brands. The thesis is that the platform’s knowledge of purchasing behaviour among higher-spending users can improve ad targeting and conversions. Better targeting can support stronger ad inventory monetisation, enabling the platform to charge more for advertising. In BoFA’s framing, that creates “brand-new income,” which is the key distinction from cost-led AI narratives that may already be reflected in valuations.

Ratings snapshot mentioned in the note

BoFA’s preview states it is maintaining a Buy rating on MakeMyTrip, Eternal, Delhivery and Paytm. The same coverage also mentions that Delhivery “may see temporary margin pressure,” contrasting with the more constructive tone on Meesho and Eternal. The article text adds an important qualifier: BoFA’s report did not publicly share target prices, ratings, or exact upside numbers for Meesho or Eternal within the article. This makes the note more thematic in how it frames the AI opportunity set, rather than a valuation-led call in the public excerpt.

BNP Paribas enters the picture: targets and implied upside

Separately, BNP Paribas analysts said Eternal and Swiggy shares look attractive after a steep correction in stock prices. BNP Paribas projected “up to 83% upside” in shares of Eternal and Swiggy and reiterated an “Outperform” rating on both companies. It set a target price of ₹420 for Eternal and ₹490 for Swiggy, implying potential upside of about 83% and 62.5%, respectively, from Monday’s closing price. BNP Paribas also addressed two investor concerns cited in the report: a “China-style valuation derating” and “AI-led disintermediation of food delivery platforms.” The brokerage said these concerns appear stretched and may not affect the two quick commerce platforms as much as feared.

Key numbers and brokerage views at a glance

Market moves referenced for Eternal

The text also notes specific trading levels for Eternal in separate market context. As of February 17, 2026, Eternal’s share price was cited in the range of ₹278.95 to ₹286.60. Another update says Eternal shares jumped more than 6% to trade at ₹307.45 on Tuesday, described as the highest level seen by the stock since November 21. These price points are presented as context around sentiment and recent price action, rather than as part of BoFA’s June 26 Q1 preview.

Why the AI framing is changing for internet stocks

Across the excerpts, the common thread is a shift from AI-as-efficiency to AI-as-monetisation. BoFA argues the “easy AI savings” are already in the price for many companies, and the market is likely to reward platforms that turn AI into incremental revenue. Meesho’s Vaani is framed as a demand and user acquisition lever, while Eternal’s AI-led advertising is framed as a pricing and monetisation lever. BNP Paribas, meanwhile, focuses more on post-correction valuation opportunity and pushes back on concerns around AI disintermediation for food delivery platforms. Taken together, the reports show brokerages splitting the debate into two tracks: quarter-to-quarter execution and longer-term monetisation pathways.

Conclusion

BoFA’s Q1 FY27 preview expects stable results for Indian internet stocks despite fuel-price risks linked to the Middle East conflict, while identifying Meesho and Eternal as standout AI-led monetisation candidates. The near-term datapoints to watch in the public preview are Meesho’s expected 33% NMV growth and Eternal’s estimated 17% QoQ net order value growth. BNP Paribas adds a separate, target-led view with an Outperform stance and a ₹420 target for Eternal, alongside a ₹490 target for Swiggy. Future updates are likely to hinge on Q1 FY27 prints and how management teams discuss AI-driven monetisation, particularly in advertising and user growth initiatives.