Analysts project Eternal will see strong revenue growth in its food delivery business and improved profitability for its Blinkit division in the second quarter. The company is expected to reach 2,700 dark stores as it scales its quick commerce footprint. Investors are monitoring these performance trends amid recent fluctuations in the share price.
Brokerage houses are projecting a period of operational growth for Eternal ahead of its second-quarter results for fiscal year 2027. Analysts are pointing toward a combination of revenue expansion in its core food delivery business and improved efficiency within its quick commerce segment, Blinkit.
Financial forecasts from HDFC Securities suggest the food delivery vertical could reach revenue of approximately ₹3,490 crore for the quarter, marking a 22 percent increase compared to the same period last year. Simultaneously, the quick commerce division remains a key focus for growth, with expectations of a significant infrastructure expansion. Reports indicate the addition of 250 new dark stores during the quarter, which would push the total network count to nearly 2,700 locations. This aggressive expansion strategy aims to capture market share while leveraging scale to improve efficiency.
Profitability metrics are also expected to show notable improvement. Projections from Kotak Institutional Equities point to a substantial rise in EBITDA, estimated at ₹854.2 crore, representing a 257.4 percent increase on a year-on-year basis. The anticipated EBITDA margin is set to reach 3.6 percent, reflecting a sequential expansion of 66 basis points. Analysts attribute this potential bottom-line improvement to more effective store management and operating performance across the network.
For investors, the contrast between recent stock performance and long-term trends remains a point of interest. Despite the positive brokerage outlook for the coming quarter, the shares have recently faced pressure in line with broader market corrections. While the stock has seen a marginal decline of around 1.33 percent over the last month, its performance over the medium term tells a different story. The stock has posted a year-to-date gain of over 13 percent, and looking back over the last three years, the equity has appreciated by nearly 189 percent. This long-term growth is often viewed as a reflection of institutional confidence in the company's evolving business model.
Looking ahead, the actual impact on the stock will depend on whether the company can meet these operational and financial targets. Investors will likely track the actual speed of store additions, the sustainability of margin improvements as the scale increases, and the company's ability to maintain high service levels during this rapid expansion. The competitive intensity in the quick commerce sector is also a factor, as maintaining profitability while managing rapid growth in store count remains a significant operational challenge for players in this space. The next key update to monitor will be the official quarterly financial release and management's commentary on demand trends for the upcoming festive season.