Analysts remain bullish on Eternal despite a 90% profit drop, citing strong revenue growth, rising e-commerce demand, Blinkit’s leadership in quick commerce, a promising 1P model shift, store expansion plans, and optimistic broker targets indicating future profitability and market potential.
India’s e-commerce market is valued at $136.43 billion in 2025 and is the world’s second-largest by shopper base. With over 270 million online shoppers, the sector is projected to grow at a compound annual growth rate (CAGR) of over 19%. This expansion is fueled by rising internet use and digital payment adoption.
With a market capitalization of Rs 2.87 Lakh crore, the shares of Eternal Ltd were trading at Rs 298.30 per share, increasing around 10 percent as compared to the previous closing price of Rs 271.20 apiece.
Analyst Recommendation
Jefferies, one of the well-known brokerages in globally, initiated a ‘Buy’ recommendation on this e-retail stock with a target price of Rs 400 apiece, indicating a potential upside of 47 percent from the previous closing price of Rs 271 per share.
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Rational
Eternal posted strong Q1 revenue growth, with Blinkit surpassing Zomato’s food delivery at Rs 2,400 crore. Consolidated revenue rose 70% YoY to Rs 7,167 crore. However, net profit plunged 90% to Rs 25 crore, and EBITDA dropped 35% to Rs 115 crore, indicating significant margin pressure despite top-line strength.
The company delivered a mixed Q1, but management’s upbeat outlook, especially on quick commerce, signals a shift from previous cautious tones. Strong overall growth, easing competition, and improved margin prospects boost confidence. While food delivery growth slowed, a rebound is expected. The first-party (1P) model also offers further upside, though short-term margins are likely to stay stable.
Management remains optimistic on profitability, expecting margin gains as newly opened stores mature and competitive intensity stabilizes. Blinkit’s shift from a third-party to first-party model is projected to add 1% margin to NOV over the next few quarters. The company also plans aggressive expansion, targeting 2,000 dark stores by December 2025 and 3,000 thereafter.
Eternal reported total Q1 revenue of Rs 7,167 crore, with quick commerce leading at Rs 2,400 crore, followed by Hyperpure supplies at Rs 2,295 crore and food delivery at Rs 2,261 crore. The “Going Out” segment contributed Rs 207 crore, while residual segments added Rs 4 crore, highlighting strong momentum across core verticals, especially quick commerce and B2B supplies.
Additionally, other brokerages remain bullish on Eternal. Nuvama raised its target price to Rs. 320 while maintaining a ‘Buy’ rating. CLSA continues with its ‘High Conviction Outperform’ call and a target of Rs. 385. Bernstein also reiterated its ‘Outperform’ rating, revising the target price upward to Rs. 320, reflecting strong confidence in future growth.
Written by Abhishek Singh
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