Eternal: Brokerages Stay Bullish Despite Q4 FY26 Miss; What Are They Betting On?

Synopsis: Top brokerages have held firm on their bullish view of one of India’s largest consumer tech platforms after a mixed quarterly result, with target prices pointing to upside of up to 65%. 

One of India’s largest consumer tech platforms just reported its Q4 FY26 numbers, and while some segments fell short of street estimates, brokerages are not backing down. Three major research firms have maintained their ‘Buy’ rating, with one seeing as much as 60% upside from current levels.

Brokerages Stay Bullish on Eternal After Q4 FY26 Results

Nomura Cuts Target, Stays Bullish

Nomura has trimmed its target price on Eternal to Rs 340 from Rs 380, but maintained its ‘Buy’ rating, implying an upside of over 37% from the current market price. The brokerage noted that the food delivery business, measured by net order value or NOV, declined 1% on a quarter-on-quarter basis but grew 19% year-on-year in Q4 FY26, broadly in line with expectations. 

Nomura pointed out that growth over recent quarters has been driven by efforts to attract value-conscious buyers, including the free delivery offer at Rs 99 for Gold members since Q2 FY26. The brokerage believes Zomato’s medium- to longer-term target of 20% NOV growth rests on modest market share gains and continued improvement in affordability and customer offerings.

Motilal Oswal Sees Blinkit as a Generational Opportunity

Motilal Oswal has kept its estimates largely unchanged and retained its ‘Buy’ rating with a target price of Rs 340, also implying 37% upside. The brokerage described Eternal’s food delivery segment as stable, while calling Blinkit a generational opportunity to participate in the disruption of retail, grocery, and e-commerce.

While it acknowledged that quick commerce growth is moderating to around 70% in FY27, it views this as a natural normalisation with improving unit economics. The brokerage sees a clear path toward a $1 billion EBITDA milestone by FY29.

JM Financial Most Bullish, Sees 65% Upside

JM Financial has taken the most constructive stance, maintaining its ‘Buy’ rating with an unchanged target price of Rs 400, implying a 60% upside from current levels. The brokerage noted that Q4 FY26 results came in below expectations, mainly because Blinkit’s NOV growth of 8% QoQ missed its estimate of 11%. 

However, management commentary on a meaningful improvement in Q1 FY27 trends, along with medium-term guidance of over 60% NOV CAGR over the next three years, was seen as reassuring. JM Financial highlighted the $1 billion adjusted EBITDA target by FY29 as an exciting goalpost that could anchor investor expectations and drive stock performance as the company delivers on it.

Financial Highlights

Eternal Ltd (Zomato) reported a massive scale-up for the quarter ended March 2026. Revenue skyrocketed to ₹17,292 crore, marking a 196.45% YoY increase from ₹5,833 crore in March 2025, and a 5.99% QoQ rise. Net Profit witnessed a significant jump of 346.15% YoY, reaching ₹174 crore from ₹39 crore, while the Operating Profit Margin (OPM) improved to 3%.

On a yearly basis, FY 2026 was transformative, with total sales surging to ₹54,364 crore against ₹20,243 crore in FY 2025, representing a 168.56% annual growth. This trajectory is underscored by a 3-year Sales CAGR of 97% and a 3-year Profit CAGR of 33%. Despite rapid expansion, the company has successfully optimized its quick commerce and food delivery operations to drive consistent bottom-line profitability.

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