Eternal hits 2025 peak as shares jump 12% on robust Q1 growth

Consumertech platform Eternal's shares rose 12% on the NSE, touching their highest level since the begining of the year after the company reported a 70% year-on-year growth in quarterly revenue, driven largely by strong growth in the quick commerce segment.

Shares of the company opened 8% higher at Rs 293 and later climbed as much as 12% to Rs 299 apiece.

The Deepinder Goyal-led company saw its quick commerce business surpass its core food delivery segment in both revenue and Gross Order Value (GOV), signaling a broader consumer shift and a potential strategic pivot within the company.

"Quick commerce surprised, with NOV soaring 127% YoY, ahead of expectations. Margins shall improve ahead due to the transition to an inventory-led model (1% as % of NOV) coupled with maturation of recently added dark stores and operating leverage," stated Nuvama Institutional Equities in a brokerage report dated July 21.

Blinkit reported a GOV of Rs 11,821 crore, marking a 140% year-over-year increase, compared to Rs 10,769 crore from Zomato’s food delivery business. Just a year ago, food delivery still represented the larger share of the company’s transaction volume.

This growth has been driven by significant capital expenditures on aggresive store expansion, supply chain investments, and customer acquistion efforts. Blinkit reported loss of Rs 42 crore, compared to a profit of Rs 43 crore in the same quarter last year. However, its bottom line improved on a sequential basis, from a loss of Rs 82 crore in March.

"​We believe the benefits of inventory-led model will start accruing immediately post implementation, and therefore remain confident that Blinkit will turn Adj. EBITDA break-even by 3QFY26 itself," shared JM Financial Institutional Securities, (JMFISL).

Blinkit’s monthly transacting users reached 16.9 million, more than doubling over the previous year. During the quarter, the platform added 243 new stores, taking its total store count to 1,544. It now aims to expand further, with a target of 3,000 stores.

"Notably, <5% of growth in quick commerce was from new markets, implying market share gain in mature markets despite competition. A bottoming out of growth in food delivery and robust execution in quick commerce augur well," stated a report by Elara Capital.

The report added that it values both food delivery and Blinkit at about $16 billion, raising the valution after Blinkit's plans to transition from 3P to 1P model, added Nuvama.

On a consolidated level, the comany reported operating revenue of Rs 7,167 crore with a 90% drop in its net profit to Rs 25 crore.

Nuvama Insitutional equities also raised the stock's target price to Rs 320 from Rs 290 while maintaining its 'Buy' rating. While, Elara Capital also raised its traget price to Rs 340 from Rs 300 with a BUY rating.