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Informist, Monday, Jul. 20, 2026

 

By Avishek Rakshit

 

KOLKATA – A strong uptick in Eternal Ltd.'s quick-commerce grocery delivery business under the Blinkit brand and optimal growth in the food delivery business, primarily on account of dark store additions, are expected to help the company report strong revenue and profit growth in the June quarter. Increasing net order value is also expected to boost the top line, according to brokerages tracking the company.

 

Eternal is expected to report a consolidated net profit of a little over INR 3 billion and consolidated revenues of over INR 197 billion for the June quarter, according to the average of estimates from nine brokerages. Its projected performance in the June quarter is not comparable to the year-ago period due to a change in business model in its quick-commerce grocery deliveries. Eternal now follows an inventory-led grocery delivery model from being an aggregator, which led to substantial changes in its profit and revenue calculations. 

 

A like-to-like comparison, however, can be made on a sequential basis as Eternal implemented the change in its business model three quarters ago. On a quarter-on-quarter basis, Eternal's net profit is expected to increase over 75% and revenue is likely to go up over 14%. Eternal, earlier known as Zomato, will declare its results for the June quarter Tuesday. 

 

For the June quarter, the highest net profit estimate is slightly over INR 4 billion from Motilal Oswal Financial Services Ltd. and the lowest is INR 2.37 billion from Bank of America Global Research. The highest estimate for revenue of nearly INR 208 billion is from Kotak Securities Ltd. and the lowest estimate is of nearly INR 183 billion from Axis Securities Ltd. 

 

Kotak Securities expects Eternal to report an 18% on-year growth in its net order value for food deliveries and a whopping 88% on-year growth in the quick-commerce grocery delivery business in the June quarter. In the March quarter, most of the consumer goods companies said quick-commerce has emerged as a strong growth driver of online sales. Several consumer goods companies are even launching new products first, or exclusively, on online platforms such as Blinkit. This trend of strong consumer demand for quick product deliveries is the key factor driving sales for companies such as Eternal. 

 

Although Eternal has not provided the number of stores added, some brokerages, including Kotak, expect the company added 225 new dark stores in the June quarter, taking the total store count to 2,468 as on Jun. 30. 

 

Brokerages said while a strong summer season led to an increase in demand for summer products such as ice-cream, sunscreen, and others, delivered by Blinkit, consumers also favoured the comfort of staying indoors and ordering groceries online, which drove sales for Eternal. The Indian Premiere League season, which saw Blinkit put out several promotional offers and discounts, also drove the sales. 

 

Eternal is expected to report a consolidated earnings before interest, tax, depreciation, and amortisation of INR 6.58 billion in the June quarter, according to an average of estimates from seven brokerages. The highest EBITDA estimate of INR 7.09 billion is from JM Financial Institutional Securities Pvt. Ltd. and the lowest EBITDA estimate of INR 5.78 billion is from Bank of America Global Research.

 

Kotak expects Eternal's EBITDA margins may contract on year owing to higher delivery costs during the June quarter.

 

Of the 11 research reports on the company available with Informist, 10 have a "buy" recommendation on the stock at an average target price of INR 376.40 and one brokerage has a "sell" recommendation. 

 

Monday, its shares closed marginally higher at INR 286.95 on the National Stock Exchange. The shares are up over 14% since the company announced its March quarter earnings in April. 

 

The following are the Apr-Jun earnings estimates, in INR billion, for Eternal from nine brokerages in descending order of the net profit estimate:

 

Broker	Net Sales	Net Profit	EBITDA
Motilal Oswal Financial Services Ltd	188.66	4.07	6.86
Nirmal Bang Equities Pvt Ltd	207.42	3.53	6.77
Axis Securities Ltd	182.68	3.29
JM Financial Institutional Securities Pvt Ltd	198.38	3.19	7.09
Nuvama Wealth Management Ltd	202.16	2.96	6.82
Kotak Securities Ltd	207.61	2.82	6.48
Anand Rathi Share and Stock Brokers Ltd	195.36	2.71
Elara Securities (India) Pvt Ltd	197.21	2.54	6.24
Bank of America global research	199.60	2.37	5.78
Average	197.56	3.05	6.58

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Himanshi Gupta

 

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