Eternal Ltd: Goldman Buy call with Rs 350 target for FY27

What Goldman Sachs is saying on Eternal

Goldman Sachs has initiated coverage on Eternal Ltd, the parent company of Zomato and Blinkit, with a Buy rating. The brokerage set a target price of Rs 350, implying an upside of about 37% from the levels referenced in its note. Goldman’s stance is linked to expectations of strong performance in food delivery and quick commerce in the first quarter of FY27.

The report flags quick commerce as the key driver, with Blinkit at the centre of the growth narrative. Goldman also expects operating metrics to improve alongside growth, which it believes could support a higher valuation if the company meets its internal targets.

Q1FY27 growth expectations: Blinkit and food delivery

Goldman expects Blinkit’s net order value (NOV) to rise 85% year-on-year in Q1FY27. The brokerage also forecasts an operating margin improvement of 30 basis points quarter-on-quarter for Blinkit. These two data points together signal that Goldman is modelling growth without assuming margin pressure in the same period.

For the food delivery segment, the brokerage expects order value growth of 20% year-on-year. The note frames food delivery as a steady contributor, while quick commerce remains the faster-growing business line in the near term.

Management guidance vs Goldman estimates

Goldman highlighted that Eternal’s internal guidance for Blinkit implies a three-year compounded annual growth rate (CAGR) of over 60%. Goldman’s own estimate, as cited, is 45% over the same period. The gap matters because it creates a scenario where execution closer to management’s guidance could lead to the stock being re-rated by the market.

Goldman’s commentary also reflects a view that sentiment may not fully reflect the pace of execution in quick commerce, especially if the operating margin trajectory continues to improve.

Multiple Goldman target prices across notes

Across the text provided, Goldman Sachs appears in several separate brokerage updates on Eternal. One snapshot shows Goldman at Buy with a target price of Rs 350 and an implied upside of +37.17%, with a date of 27-06-2026. Another update cited a maintained Buy rating with a revised target price of Rs 340, implying upside of 31.6% from the level referenced in that note.

Separately, other Goldman commentary cited a revised 12-month target price of Rs 375 (from Rs 390 earlier), implying 33% upside from current levels, and noted it disagreed with the extent of bearishness priced into the stock. These references underline that targets have moved across reports, while the Buy stance has been retained.

What consensus estimates and analyst coverage show

The consensus rating for Eternal is stated as “Buy”, based on 32 analysts. The average 12-month price target from these analysts is 346.19 INR. The range of estimates is wide, with a high estimate of 505 INR and a low estimate of 190 INR.

The data also points to a potential upside of +35.68% based on the analysts’ average target. While these figures do not guarantee performance, they frame where the broader sell-side expectations are clustered.

Other broker views: Morgan Stanley, Nomura, Nirmal Bang

Morgan Stanley maintained an Overweight rating on Eternal with a target of Rs 347, up slightly from Rs 345, implying 34.4% upside from current levels mentioned in its report. It pointed to strong execution in quick commerce and said Blinkit’s operating profit before depreciation (OPD) grew 15% quarter-on-quarter. Morgan Stanley also cited management’s expectation of over 60% CAGR in NOV over the next three years.

Nomura Equities maintained a Buy rating but cut its target to Rs 380 from Rs 430 earlier. Nirmal Bang maintained a Buy rating with a target price of Rs 334, implying around 30% upside from current levels.

Stock moves highlighted in the reports

Eternal shares surged over 4% after strong Q4 FY26 results, with commentary pointing to explosive growth in Blinkit and steady gains in Zomato’s food delivery business. The company reported a 346% year-on-year jump in net profit, while revenue nearly tripled, highlighting operating leverage.

In another trading reference, the stock rose 1% or Rs 2.79 to close at Rs 258.28 on the NSE on Tuesday (April 29). Elsewhere, after Goldman’s endorsement in a separate update, Eternal shares were up 1.5% at Rs 287.80 on the BSE in morning trade.

A further update said the stock climbed 3.3% to an intraday high of Rs 292.90 on the NSE after Goldman reiterated its Buy view. Another note mentioned a 17% decline over the past three months, alongside an all-time high of Rs 343.95 and a 21% year-to-date gain in a different period referenced.

Key numbers at a glance

Market impact and what investors are watching

The common thread across brokerage notes is that quick commerce execution is central to the investment case, even as reports acknowledge rising competition in the segment. Goldman’s view, as cited, includes the belief that concerns around a near-term slowdown and margin pressure may be overstated in the market.

Investors are likely to track whether Blinkit can sustain high NOV growth while still expanding margins, especially with Goldman modelling a sequential margin improvement. Another watchpoint is whether food delivery growth holds around the 20% level referenced, because it supports consolidated scale and cash generation.

Why this matters for Eternal’s valuation debate

Goldman’s comparison between management’s Blinkit CAGR guidance of over 60% and its own estimate of 45% frames the upside case as execution-driven. If results track closer to management guidance, Goldman suggests the stock could be re-rated, a point echoed in the broader set of bullish ratings.

Some Goldman commentary in the text also points to expectations of EBITDA growth of 50%+ year-on-year at least until FY30E, and an expectation that USD 1 billion EBITDA by FY29 is achievable. These claims, along with analyst targets clustered in the mid-Rs 300s, keep attention on quarterly updates that validate the growth and margin trajectory.

Conclusion

Goldman Sachs’ Buy call on Eternal with a Rs 350 target is anchored in expectations of strong Q1FY27 momentum across Blinkit and food delivery, alongside signs of improving unit economics. With multiple brokerages maintaining positive ratings and targets around current levels, upcoming quarterly disclosures will be the main checkpoint for growth, margin, and competitive intensity.