Eternal Ltd., the parent company behind popular food delivery platform Zomato and quick commerce service Blinkit, is gearing up to reveal its March quarter financial performance on Tuesday, April 28. Market analysts are anticipating a strong showing, with projections pointing to a significant surge in both sales and profitability.
Robust Profit and Sales Growth Expected
Brokerage firms are largely forecasting a substantial increase in Eternal Ltd.'s financial metrics. Expectations include a year-on-year (YoY) rise in sales of up to 210% and a net profit jump that could reach an impressive 430% for the fourth quarter of the fiscal year 2026.
Zomato's Performance Outlook
ICICI Securities, a prominent brokerage, predicts Zomato's Gross Order Value (GOV) to grow by 20% YoY in Q4. Net Order Value (NOV) is expected to increase by 17.2%. The firm estimates an adjusted EBITDA of Rs 530 crore for Zomato, with an adjusted EBITDA margin of 4.5% as a percentage of GOV.
Blinkit's Rapid Expansion Fuels Growth
Blinkit, Eternal's quick commerce arm, is also expected to be a key growth driver. ICICI Securities projects Blinkit's GOV to soar by 106.1% YoY and NOV by 100.50% YoY. Adjusted EBITDA for Blinkit is estimated at Rs 44.30 crore, with a margin of 0.2% of GOV. Overall, ICICI Securities anticipates consolidated adjusted revenue growth of 208% YoY, leading to a consolidated Profit After Tax (PAT) of Rs 120 crore.
Brokerage-Specific Forecasts and Target Prices
Kotak Institutional Equities, another major brokerage, expects Eternal's food delivery Gross Merchandise Value (GMV) to grow by 20% YoY. For Blinkit, Kotak projects a 99% YoY growth in Net Merchandise Value (NMV), largely driven by an aggressive expansion in dark store count. Kotak anticipates a total of 2,200 Blinkit stores, implying 173 new additions in Q4 alone.
- Kotak models a 30 basis points quarter-on-quarter (QoQ) expansion in contribution margin and 20 basis points QoQ expansion in EBITDA margin for the food delivery business, reaching 8.8% and 4.6% respectively.
- This margin expansion is partly attributed to an increase in platform fees implemented late in the quarter.
- For Blinkit, Kotak expects flat contribution and EBITDA margins QoQ, as operating leverage from older stores may be offset by competitive pricing actions.
- Kotak forecasts an adjusted profit of Rs 67.80 crore, a 73.80% YoY increase, with revenue rising 200% YoY to Rs 17,498 crore.
MOFSL (Motilal Oswal Financial Services) presents an even more optimistic outlook, estimating Eternal's profit at Rs 207.50 crore, marking a 432% YoY increase. The brokerage projects revenue at Rs 16,400 crore, up 180.60% YoY.
Analyst Target Prices for Eternal Ltd.
Several brokerages have issued target prices for Eternal Ltd. stock:
- MOFSL: Rs 330
- BNP Paribas: Rs 380 (recently updated from Rs 420)
- Nirmal Bang: Rs 334
- JM Financial: Maintains 'Buy' rating with a target price of Rs 400
Investors will be closely watching the official results announcement for confirmation of these robust growth figures.