Eternal shares jumped over 7% in early trade on Thursday after the company reported a stronger-than-expected performance for the December quarter.
The stock rose as much as 7.33% to Rs. 304.20 on the BSE before easing from the day’s high. Investor sentiment improved due to sharp revenue growth and faster profitability in the quick commerce segment.
The company posted a consolidated net profit of Rs. 102 crore in Q3FY26, marking a 73% year-on-year increase. Revenue from operations surged 201% YoY to Rs 16,315 crore, supported by scale-up in quick commerce. On a like-for-like basis, revenue grew 64% YoY.
Consolidated EBITDA for the quarter rose 28% YoY to Rs. 364 crore and increased 63% sequentially. It reflects the operating leverage across businesses.
Eternal’s food delivery business, monitored through Zomato, continued to show stable growth. Adjusted revenue from the segment increased 26% YoY to Rs. 2,413 crore. Net order value rose 17%, while gross order value grew 21%. Adjusted EBITDA also climbed 26% YoY to Rs. 531 crore, with margins reaching a record 5.4% of NOV.
The bigger surprise came from quick commerce arm Blinkit reporting 121% YoY growth in net order value, while like-for-like NOV growth stood at 130%. The segment turned adjusted EBITDA-positive for the first time quarterly, posting a profit of Rs. 4 crore.
Also Read: Deepinder Goyal Exits Eternal CEO Role, Blinkit’s Albinder Takes Over
Earlier on Wednesday, Eternal announced that Deepinder Goyal will step down as MD and CEO effective February 1.
Nuvama Institutional Equities maintained a ‘Buy’ rating and raised its target price to Rs. 430, citing early breakeven at Blinkit and Hyperpure. Motilal Oswal Financial Services has reiterated its suggestion for a ‘Buy’ but had to lower the target to Rs. 360 after having seen increased competition and investment needs. At 9:25 am, Eternal shares traded 2.45% higher at Rs. 290.35 on the BSE.