The shares of Eternal, parent company of Zomato, surged to hit its day high of Rs 239.50 per share, i.e, 8.83 percent up from its day low of Rs 220.05 per share. With a market capitalisation of Rs 2,27,314 crores, the shares of Eternal Ltd is currently trading at Rs 236, down by 22.7 percent from its 52-week high of Rs 305 per share. In the last one year, the stock has given a positive return of approximately 2 1 percent.
Financial Highlights
The company announced its financial results yesterday, and the market reacted to it. It reported a consolidated revenue of Rs 20,243 crores in FY25, up by 67 percent from its FY24 revenue of Rs 12,114 crores. It increased by 63.75 percent YoY from 3,562 crores in Q4 FY24 to 5,833 crores in Q4 FY25. Additionally, on a QoQ basis, it rose by 7.9 percent from 5,405 crores in Q3 FY25 to 5,833 crores in Q4 FY25.
It posted a net profit of Rs 527 crores in FY25, up by 50 percent, from its FY24 net profit of Rs 351 crores. It declined by 78 percent YoY from 175 crores in Q4 FY24 to only 39 crores in Q4 FY25. Additionally, on a QoQ basis, it declined by 34 percent from 59 crores in Q3 FY25 to 39 crores in Q4 FY25.
The decline was mainly due to increased investments in the expansion of their quick commerce store network. Additionally, its gross order value (GOV) for food delivery increased by 16% compared to the previous year. It saw a massive change of 134% in its quick commerce segment as compared to its previous year.
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Brokerage Comments
Jefferies has maintained its HOLD rating with a marginal decrease to Rs 250 from Rs 255 earlier, signaling an upside potential of 6.5 percent. It added that since the management provided a guarded estimate on its Quick Commerce business, citing growing competitive intensity, which is expected to increase even more. Accordingly, Jeferries lowered its estimates for adjusted EBITDA in its Quick Commerce division, Eternal, by 5% to 15%.
Nomura also lowered its price target to Rs 280 from Rs 290 per share, citing the lower profitability of Blinkit, signaling an upside potential of 23 percent. Motilal Oswal has maintained its BUY call with a target price of Rs 260 per share, signaling an upside potential of 10.8 percent. It stated that it’s optimistic on Zomato’s dominance in the quick commerce segment and also in the company’s long-term potential of Blinkit as a generational opportunity in retail, grocery, and e-commerce disruption.
Written by Satyajeet Mukherjee
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