San Francisco Frontiers - Brokerages See Eternal Extending Food Delivery and Quick-Commerce Gains

Brokerage forecasts point to further market-share gains for Eternal in food delivery and quick commerce during the second quarter of the 2027 financial year.

Eternal Q2FY27 preview: Brokerages expect Eternal to continue gaining market share in food delivery and quick commerce in Q2FY27, with improving margins, growth in order value and Blinkit’s store expansion supporting performance. Brokerage View on Eternal Q2FY27 preview HDFC Securities HDFC Securities anticipates Eternal to continue gaining market share across food delivery (FD) and quick commerce (QC), with Zomato’s adjusted revenue projected at ₹3,490 crore, up 22 per cent year-on-year. For Blinkit, the brokerage anticipates net order value (NOV) and adjusted revenue to grow 17.1 per cent and 17.8 per cent, respectively. On profitability, HDFC Securities anticipates food delivery margins to improve by 30 basis points and 10 basis points quarter-on-quarter across the metrics tracked. Blinkit’s adjusted Ebitdam is projected to improve by 30 basis points, supported by greater dark-store efficiencies. The brokerage also anticipates Blinkit to add 250 stores during the quarter, while monitoring monthly transacting user (MTU) growth across food delivery and quick commerce, along with competitive intensity. Kotak Institutional Equities Kotak Institutional Equities anticipates Eternal’s revenue to rise 17.4 per cent quarter-on-quarter to ₹23,729.3 crore in Q2FY27. Ebitda is projected to surge 257.4 per cent year-on-year to ₹854.2 crore, while the Ebitda margin is projected to expand to 3.6 per cent, up 184 basis points year-on-year and 66 basis points sequentially. Adjusted profit after tax is estimated to jump 351.1 per cent year-on-year to ₹293.2 crore, supported by improved operating performance. The brokerage anticipates Eternal to post 20 per cent y-o-y growth in food delivery NOV and 75 per cent y-o-y growth in Blinkit NOV. The 75 per cent y-o-y and 19 per cent q-o-q NOV growth in Blinkit is set to be driven by rapid store addition (the brokerage models a period-ending store count of 2,693, implying 250 new dark store additions in 2QFY27), scale-up of existing stores and possible market-share gain. Eternal share price The company's counter came under pressure on Monday. At 01:50 PM, Eternal’s share price was trading 0.88 per cent lower at ₹322.45 per share on NSE. In comparison, Nifty 50 was down 1.21 per cent at 22,867. In intraday trade, the stock fell 1.2 per cent to touch the day's low at ₹321.60 per share. Eternal shares have fallen 0.15 per cent over the past week, compared with a 2.25 per cent gain in the Nifty 50. Over the past month, the stock has declined 1.33 per cent, while the benchmark has fallen 2.05 per cent. nevertheless, Eternal has delivered stronger returns over the longer term. The stock has gained 13.64 per cent year-to-date, while the Nifty 50 has declined 12.54 per cent. Over three years, Eternal has risen 188.85 per cent, compared with the index’s 16.52 per cent gain. Over five years, the stock has gained 132.77 per cent, against a 24.15 per cent rise in the Nifty 50.

I.Rodriguez--SFF