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Shares of foodtech major Eternal today surged as much as 14.8% to INR 311.60, touching a fresh 52-week high.
The rally followed yesterday’s surge in Zomato’s stock, driven by higher revenue posted by the company in Q1 FY26 despite missing profit expectations.
As of 11:11 AM, the stock pared some gains and was trading 8.6% higher at INR 294.55.
At this level, the company’s market capitalisation stood at INR 2,85,602.13 Cr, with a trading volume of 14.8 Cr shares. The stock’s upper price band of INR 311.85 was near today’s intraday high.
Just a day earlier, Zomato parent Eternal reported a consolidated net profit of INR 25 Cr for the first quarter of FY26, marking a decline of over 90% year on year YoY and 36% quarter on quarter QoQ, as the company continued to invest heavily in its quick commerce arm, Blinkit.
However, during the same quarter, Eternal’s operating revenue surged over 70% YoY and 23% QoQ to INR 7,167 Cr.
The stock rally also coincided with positive commentary from brokerage firms UBS, Citi, and Bernstein, who cited an improving outlook for Blinkit.
It is worth noting that in Q1 FY26, Eternal’s quick commerce arm Blinkit overtook the company’s food delivery segment in revenue contribution. Blinkit’s operating revenue surged 155% YoY to INR 2,400 Cr, while its losses remained flat at INR 42 Cr during the quarter, compared to a profit of INR 43 Cr in Q1 FY25. On top of this, Eternal announced plans to establish a new wholly owned subsidiary, Blinkit Foods Limited.
Despite acknowledging that Eternal’s consolidated adjusted EBITDA missed estimates by over 25%, both UBS and Citi maintained a bullish stance, issuing Buy calls and raising their target prices. UBS maintained its target at INR 315, while Citi raised its target to INR 320 from INR 290.
Eternal’s shares have delivered a stellar performance this year, giving a 39.36% return to investors on a year-to-date basis, far surpassing the Sensex’s return of just 4.67% during the same period.
The post Eternal Shares Touch Fresh 52-Week High After Q1 Show appeared first on Inc42 Media.
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