Eternal Q4FY26: Targets point to 58% upside in 2026

Why Eternal is back on the Street’s radar

Eternal, the parent of Zomato and Blinkit, reported March-quarter (Q4FY26) results that were described as largely in line by analysts, but with enough signals on execution and guidance to keep broker optimism intact. Brokerages broadly retained ‘Buy’ ratings, while tweaking price targets around near-term risks such as competition and macro uncertainty. The key takeaway from commentary cited by analysts was the company’s attempt to scale quick commerce without letting unit economics slip too far.

On targets, analysts cited a one-year range of ₹300 to ₹400 in the immediate post-results context, implying up to 57.6% upside potential based on the price levels referenced alongside that report. Separately, other brokerage notes in circulation have carried higher targets, including Jefferies at ₹480 and Goldman Sachs at ₹375, reflecting differing valuation frameworks and assumptions.

Stock performance: intraday swings and value-buying narratives

Eternal’s stock saw volatile moves on the BSE after the Q4FY26 commentary. The share price rose nearly 2% to ₹265.25 in intraday trade before paring gains to a low of ₹253. At 10:02 AM, the stock was up 1.4% at ₹257.4, compared with a 0.86% rise in the BSE Sensex.

In a separate trading-day snapshot dated March 17, the stock also featured among top gainers amid value buying after a steep correction. At 11 AM that day, Eternal shares on the BSE traded 4.4% higher at ₹231.75. That note said the stock had fallen 40% from its recent highs, which drew bargain-hunting interest.

Q4FY26 results: revenue, EBITDA and margins

Eternal reported consolidated net revenue of ₹17,200 crore in Q4FY26, up 6% quarter-on-quarter and 196.5% year-on-year. EBITDA came in at ₹490 crore, up 32.1% QoQ and 575% YoY, with an EBITDA margin of 2.8%.

The reported numbers supported the view that Blinkit and food delivery remain the central engines of growth. Analysts also highlighted Blinkit’s stated ability to balance aggressive scaling with disciplined unit economics, even as competition stays intense.

Food delivery and Blinkit: what analysts highlighted

Analysts pointed to food delivery momentum in Q4FY26 and to Blinkit’s scaling approach as key to easing long-term growth concerns. In commentary attributed to Motilal Oswal Financial Services, the brokerage said guidance on a growth rebound in Q1FY26 and expectations of over 60% CAGR over the next three years could help address fears of quick commerce saturation. The same note said demand appeared to be building across cities, with no visible monthly transacting users saturation yet.

JM Financial’s March 17 note focused on the market’s concerns around competitive intensity and leadership changes, as well as broader global macro uncertainty. The brokerage argued that the impact of new competition in food delivery was being overstated, and it kept a target price of ₹400.

What brokerages are saying: targets and rationale

Brokerages cited in the reports largely stayed positive, with target prices spread across a wide band.

• Nomura kept a ‘Buy’ rating and cut its target to ₹340 from ₹380.
• Motilal Oswal maintained a ‘Buy’ rating with a ₹340 target in one note, while another report later referenced a ₹420 target.
• ICICI Securities maintained a ‘Buy’ rating with a ₹360 target, and flagged management’s stated aim to achieve consolidated adjusted EBITDA of $1 billion by FY29.
• JM Financial maintained a ‘Buy’ rating and a ₹400 target, saying the $1 billion adjusted EBITDA goal could anchor investor expectations.

Jefferies described Eternal as an “FPI favourite” in a note dated February 2 and set a street-high target of ₹480, citing strong growth and margin improvement across quick commerce and food delivery. Goldman Sachs initiated coverage with a ‘Buy’ rating and a ₹375 target price, while also calling out the stock’s very high price-to-earnings multiple (1,460x) in its note.

Key numbers and targets at a glance

Brokerage target price table

Market impact: what’s moving sentiment

The immediate market reaction combined two forces: earnings and guidance on one side, and concerns about competition and global macro uncertainty on the other. On the bullish side, analysts pointed to Blinkit reporting positive EBITDA in a period described as peak competitive intensity in a Jefferies note, along with steady margin improvement expectations.

On the cautious side, risk factors cited include a potential slowdown in discretionary spending and “negative externalities” disrupting operations, as highlighted in the ICICI Securities view included in the report. The stock’s volatility around results day and the sharp correction referenced in the March 17 note show how quickly sentiment can swing as narratives change.

Analysis: why the guidance and goalposts matter

Two recurring “goalposts” appear to be shaping how analysts frame Eternal’s valuation. First is the scaling-versus-economics trade-off in quick commerce, where commentary stressed disciplined unit economics alongside blitz-scaling. Second is the longer-dated profitability ambition, with management’s aim of consolidated adjusted EBITDA of $1 billion by FY29 cited as a key anchor for expectations.

Broker methodologies differ widely. Jefferies outlined a valuation approach that included separate multiples for food delivery, quick commerce and the Going-Out segment to arrive at its ₹480 target. Goldman Sachs, while also positive, highlighted that the valuation remains demanding, even as it argued quick commerce penetration is still near 5% and sees a long runway.

What investors will watch next

Near-term focus is likely to stay on execution across Blinkit and food delivery, and on whether the company can maintain growth while improving margins. Investors will also track how brokerages adjust assumptions on competitive intensity, and whether near-term volatility persists.

Several notes referenced model shifts in quick commerce toward an inventory-led approach and the potential for margins to improve in the next two or three quarters, making operational updates and segment-level trends important in upcoming results.

Conclusion

Eternal’s Q4FY26 results kept the Street’s core thesis intact: strong growth from Blinkit and food delivery, alongside a sharper focus on unit economics and defined profitability milestones. Target prices cited span ₹300 to ₹480, reflecting both optimism on execution and caution on valuation and competition. The next set of quarterly disclosures and any progress updates on profitability goals are likely to remain the key checkpoints for investors.