Zomato’s latest stock rally has caught the market’s attention, with investors responding swiftly to improving profitability and a notable turnaround in quick commerce. Backed by strong quarterly earnings and upbeat brokerage commentary, Eternal Ltd is firmly back in focus.
Shares of Eternal Ltd, the parent company of Zomato and Blinkit, surged more than 6% in early trade on Thursday, briefly touching Rs 301.65 on the National Stock Exchange. Although the stock later cooled to around Rs 287, it still extended Wednesday’s nearly 5% gain. Meanwhile, the rally lifted Eternal’s market capitalization to approximately Rs 2.74 lakh crore, underscoring renewed confidence in the Zomato share price outlook.
What’s Powering the Rally in Eternal (Zomato Share Price Update)
At the heart of the move is Eternal’s December-quarter performance. The company reported a 73% year-on-year jump in consolidated net profit to Rs 102 crore, broadly matching Street expectations. Revenue rose to Rs 16,315 crore, exceeding estimates and reflecting robust growth in India’s fast-expanding quick commerce segment.
Notably, EBITDA climbed to Rs 368 crore, with margins improving to 2.3%. Both Blinkit and Hyperpure achieved adjusted EBITDA profitability during the quarter, marking a critical inflection point. Blinkit, in particular, posted an adjusted EBITDA profit of Rs 4 crore after several loss-making quarters, a development many analysts see as a structural positive for Eternal Ltd stock.
That said, food delivery growth remains steady rather than explosive. Analysts note that while order volumes are recovering, the pace of normalization is gradual. Even so, the combination of disciplined costs and operating leverage has strengthened the overall investment narrative.
Brokerage Views and Target Price Revisions
Following the Q3 FY26 results, several brokerage firms reaffirmed positive ratings on Eternal Ltd. Motilal Oswal reiterated a “buy” call, setting a target price of Rs 360, which implies roughly 27% upside from current levels. The firm highlighted Eternal’s leadership in food delivery and quick commerce, while cautioning that competitive intensity could weigh on near-term margins.
CLSA went a step further, maintaining its high-conviction outperform stance with a target price of Rs 503. The brokerage cited stronger-than-expected contribution per order and a 121% year-on-year surge in Blinkit’s net order value. Jefferies and HSBC also kept their positive ratings, pointing to Blinkit reaching EBITDA break-even and faster growth in food delivery. Nomura, meanwhile, reiterated its positive view but flagged execution consistency as a key monitorable.
Leadership Transition and What Investors Are Watching Next
Alongside earnings, Eternal announced a leadership transition that drew market attention. Founder Deepinder Goyal will step down as managing director and CEO, with Blinkit CEO Albinder Dhindsa set to take over, subject to shareholder approval. Brokerages largely agree the change is unlikely to disrupt near-term performance, noting that operational control has already been centered on Blinkit.
Looking ahead, investors are closely tracking Blinkit’s profitability trajectory, food delivery growth trends, and execution under the new leadership structure. For official disclosures and filings, investors can refer to NSE India and the company’s updates on Zomato Investor Relations.
Overall, the latest results have reshaped sentiment around Eternal Ltd, positioning the Zomato share price as a key barometer for how quickly India’s quick commerce economics can scale sustainably.
