Eternal Limited (formerly Zomato) shares touched a 10-month high of ₹331.95 on Wednesday. The move follows strong first-quarter results, with Net Order Value rising 54% to ₹31,120 crore. Investors are focusing on the profitability of its quick commerce unit, Blinkit, even as competition in the sector remains high.
Eternal Limited, formerly known as Zomato, saw its share price rise to an intra-day high of ₹331.95 on Wednesday. This marks a 10-month peak for the stock and a recovery of approximately 56% from its lows seen in March 2026. The stock movement follows the company's strong financial performance in the first quarter of the 2027 fiscal year.
The company, which has rebranded to Eternal to better reflect its multi-business structure, reported a 54% year-on-year increase in Net Order Value, which reached ₹31,120 crore. Profitability also showed improvement, with adjusted EBITDA rising to ₹555 crore, more than triple the figures from the previous year. A major driver for this growth has been the Blinkit quick commerce division, which recorded its fifth consecutive quarter of margin improvement.
Blinkit and Profitability Focus
The quick commerce sector has been the most significant contributor to the current investor interest in Eternal. Blinkit’s ability to scale while improving its unit economics has been central to the company’s recent performance. Management has raised its steady-state margin outlook for this business to 6% of Net Order Value. This target reflects a growing confidence in the company's ability to balance rapid growth with operational efficiency, despite the significant costs typically associated with running a network of dark stores and delivery fleets.
Beyond food delivery and quick commerce, the company is also expanding into other areas like Hyperpure for B2B supplies and its newer 'District' platform for going-out services. This diversification strategy is intended to reduce reliance on any single business segment.
Competitive Pressures and Risks
While the financial results have been positive, investors should remain aware of the competitive intensity in the Indian quick commerce and food delivery markets. The sector remains highly contested, with multiple players investing heavily to capture market share. This can lead to aggressive discounting, which may create volatility in profit margins.
Another key area to monitor is the execution risk inherent in a large-scale expansion. Growing the number of dark stores while maintaining quality and delivery speed requires complex logistics and consistent management. Any increase in competition or a shift in consumer spending patterns due to broader economic factors, such as inflation, could impact the company’s ability to meet its long-term targets, including the goal of reaching $1 billion in EBITDA by FY29. Moving forward, shareholders will likely track how effectively the company manages these expansion costs without sacrificing the margins it has worked to build over the last several quarters.