Eternal shares jump 3% after Q1 results. Jefferies, CLSA and 4 other brokerages weigh in

Published 23 July 2026 · finance

Shares of food delivery giant Eternal rose 3% to Rs 291 on the BSE on Thursday after it reported a consolidated profit of Rs 87

Shares of food delivery giant Eternal rose 3% to Rs 291 on the BSE on Thursday after it reported a consolidated profit of Rs 87 crore for the first quarter of FY27, marking an 11% decline from Rs 98 crore posted in the same period last year. The net profit is attributable to the owners of the parent company.The company’s revenue from operations came in at Rs 20,211 crore, a massive 182% jump from Rs 7,167 crore reported in the corresponding quarter of the previous financial year, Eternal said in a regulatory filing.On a sequential basis, net profit declined 47% from Rs 174 crore posted in the previous quarter. Revenue from operations, on the other hand, rose 17% from Rs 17,292 crore, according to the company’s exchange filing.Eternal shares: Buy, sell or hold?JPMorgan maintained its Overweight rating on Eternal with a target price of Rs 390 (38% upside), calling the quarter strong but broadly in line with expectations, with growth accelerating across quick commerce, food delivery and District.CLSA retained its High Conviction Outperform rating on Eternal with a target price of Rs 506 (79% upside), saying the company's Q1FY27 results reinforced its view of strong execution.

Both quick commerce and food delivery posted faster growth, while profitability improved despite elevated competition.Blinkit reported faster NOV growth along with greater confidence in profitability and cash generation. Zomato's growth accelerated to its fastest pace in six quarters, with limited impact from emerging no-commission platforms. Meanwhile, newer businesses such as District and Bistro continued to expand the ecosystem and drive customer engagement.Jefferies maintained its Buy rating on Eternal with a target price of Rs 415, saying the first quarter reinforced the importance of quality growth over simply chasing market share. Food delivery growth accelerated alongside better-than-expected profitability, while quick commerce performance remained strong despite falling short of optimistic forecasts. The key takeaway for the brokerage was management's growing confidence that competitive intensity in quick commerce has become more predictable and that value-led food delivery is unsustainable.Blinkit does not favour a short-term discounting strategy, and management indicated it is comfortable with the broader market growing faster as a result.Nomura retained its Buy rating on Eternal with a target price of Rs 350, implying a 24% upside, citing improving quick commerce profitability despite intense competition. Blinkit added 200 stores during the quarter, taking its total store count to 2,443.