Eternal Q4FY26 results: Motilal sets ₹340 target

Why Eternal’s quarterly print mattered

Eternal Ltd. remains in focus for investors tracking India’s quick commerce and food delivery race, where scale and unit economics are moving quickly. After the March-quarter results, Motilal Oswal reiterated a BUY rating, arguing that Eternal’s leadership in quick commerce and food delivery supports a structural growth case. The brokerage also positioned Blinkit as a long-term opportunity linked to disruption in retail, grocery, and e-commerce.

The results also arrived amid a mixed stock-price backdrop. Eternal’s share price is down 20% over the last six months and about 11% since the start of the year, even as optimism around Blinkit has remained a recurring theme in brokerage commentary. On the day referenced in the report, the stock rose as much as 5% in early trading on the NSE, and at 9:47 am it was at ₹254.22 after touching an intraday high of ₹265.40.

Q4FY26: revenue up sharply, profitability improved

Eternal reported Q4FY26 net revenue of ₹172 billion, up 6% quarter-on-quarter and 196% year-on-year. Consolidated EBITDA margin improved to 2.8% for the quarter. Profit after tax (PAT) stood at ₹1.74 billion, supported by improving profitability across quick commerce operations.

Motilal Oswal noted the reported growth was above its expectation for the quarter, highlighting that the revenue trajectory continues to reflect rapid scaling. The brokerage also continued to tie its thesis to improving store economics and operating leverage, especially in quick commerce where the cost structure can shift meaningfully with maturation.

Net order value: Food delivery steady, Blinkit continues scaling

On operating metrics, food delivery net order value (NOV) came in at ₹97.6 billion, ahead of Motilal Oswal’s estimate of ₹96.4 billion. Blinkit NOV was ₹143.8 billion, up 96% year-on-year, slightly below the brokerage estimate of ₹146 billion.

In food delivery, adjusted EBITDA as a percentage of NOV improved 10 basis points sequentially to 5.5% in Q4FY26, versus Motilal Oswal’s estimate of 6.1%. The brokerage’s framing remained consistent: food delivery is stable, while Blinkit is the longer-duration growth lever.

Management commentary: growth outlook and margin path

Management remained confident of sustaining 60%+ Blinkit NOV CAGR over the next three years and outlined a long-term path toward $1 billion adjusted EBITDA by FY29. For food delivery, management expects NOV growth of 20%+ with stable 5-6% margins.

However, the commentary also acknowledged that quick commerce growth could normalise amid elevated competition. Management indicated Blinkit growth is likely to normalise near 70% in FY27, reflecting the reality of competitive intensity and the base effect after multiple years of expansion.

What earlier quarters signalled about execution

The quarterly trend across FY26 shows a fast-growing revenue base alongside improving contribution metrics in Blinkit and steady profitability in food delivery.

In Q3FY26, Eternal reported net revenue of ₹163 billion, up 20.7% quarter-on-quarter. Food delivery NOV was ₹98.4 billion and Blinkit NOV was ₹133 billion, with Blinkit posting 120% year-on-year NOV growth. Food delivery adjusted EBITDA margin (as % of NOV) was 5.4%, while Blinkit reported a contribution margin of 5.5% and adjusted EBITDA at breakeven.

In Q2FY26, net revenue was ₹135 billion, up 90% quarter-on-quarter and 183% year-on-year. Motilal Oswal attributed the high revenue growth mainly to the shift to inventory ownership in quick commerce, where revenue started including the full monetary value of goods sold under Ind AS rather than only marketplace commissions. Food delivery NOV was ₹94.2 billion, and Blinkit NOV was ₹116.7 billion, up 137% year-on-year. Blinkit’s contribution margin improved to 4.6%, while adjusted EBITDA margin was -1.3%.

Key numbers at a glance

Store expansion and new growth drivers beyond Blinkit

Motilal Oswal flagged that beyond Blinkit, key growth drivers include Hyperpure and the Going-Out segment. Hyperpure is targeting a ₹80 billion revenue run rate (₹8,000 crore), while the company continues to scale its Going-Out business.

On the physical network, Eternal plans to expand to over 3,000+ stores, indicating continued investment in quick commerce infrastructure. A separate note referenced Blinkit’s aim to achieve 3,000 stores by Q4FY26, reinforcing that store count remains central to its growth strategy and assortment depth.

Valuation and target prices: what Motilal Oswal said

In a research report dated April 28, 2026, Motilal Oswal reiterated its BUY rating with a target price of ₹340. The brokerage said its target implies a 34% upside from the then-current level.

Across other notes cited in the provided material, Motilal Oswal’s targets varied by period and assumptions. One note cited a target price of ₹360, while another mentioned ₹410, and separate commentary referenced targets of ₹400 and ₹420, alongside a revised Sep’26 target of ₹400 in one instance. The differences were presented alongside shifting near-term expectations on competition, discounting, dark-store expansion, and branding and marketing investments.

Market impact: stock move, competition, and margins to watch

The immediate market reaction highlighted the sensitivity of the stock to quarterly profitability and the Blinkit trajectory. The surge of up to 5% in early trade came after the March-quarter results, reflecting investor attention on improving profits and operating leverage.

At the same time, Motilal Oswal flagged expectations of high volatility in the short term as competition heats up. It also cautioned that competitive intensity could lead to higher discounting and lower minimum order values, which can adversely impact profitability. Against that backdrop, food delivery’s 5-6% sustainable margin range, as cited in the provided material, becomes an important anchor for consolidated profitability.

Broader consumer backdrop: live entertainment spending in India

The provided material also pointed to structural consumption growth in India beyond food and grocery. India’s concert market, estimated at ₹50-66 billion today, is projected to reach ₹120-150 billion by FY30, implying a 2 to 2.5x expansion. The drivers cited include rising incomes, deepening urban consumption, and low per-capita live entertainment spend of $12-25 annually versus developed markets.

While this data point is not specific to Eternal’s quarterly results, it supports the broader thesis that discretionary spending categories in urban India are expanding, which can influence demand across multiple app-led consumer services over time.

Conclusion

Eternal’s Q4FY26 results showed ₹172 billion net revenue, an improved consolidated EBITDA margin of 2.8%, and a PAT of ₹1.74 billion, alongside strong Blinkit NOV growth and steady food delivery margins. Motilal Oswal maintained its BUY stance, with an April 28, 2026 target price of ₹340, while also warning that quick commerce competition could keep volatility elevated. The next set of cues for investors will come from how Blinkit growth normalises in FY27, progress on store expansion toward 3,000+ stores, and whether margin expansion continues through store maturity and operating leverage.