Eternal’s profit falls, but shares rise
Why?
Hey there,
It’s Monday, and while most of us are slowly crawling back into our weekly routine, the stock market seems to have had a strong cup of espresso.
Let’s talk about Eternal (formerly Zomato), the stock that surprised everyone this morning.
Despite a 90% drop in net profit YoY, Eternal’s shares jumped over 7% intraday and closed up 5% on the BSE.
Confused? Same.
But here's what really happened👇
📌 Blinkit stole the limelight
Eternal’s quick commerce arm, Blinkit, had a blockbuster quarter.
For the first time ever, Blinkit’s net order value (NOV) exceeded that of food delivery, marking a major shift in the company's core engine.
Blinkit added 243 new stores this quarter, taking the total to 1,544, with plans to hit 2,000 by December 2025.
NOV grew 127% YoY, thanks to a 123% jump in monthly transacting customers.
They even added 0.4 million sq. ft. of warehouse space to keep pace.
Meanwhile, Eternal's overall B2C businesses are now running at an annualized $10 billion NOV. Half of that is driven by Blinkit alone.
And even the profits aren’t that pretty.
Net profit crashed to ₹25 crore from ₹253 crore a year ago.
EBITDA dropped 42% YoY to ₹172 crore.
But… food delivery margins did improve (from 3.9% to 5%).
📌 So, why the sudden stock surge?
Investors chose growth over profitability, for now.
They’re betting big on future scalability, category leadership, and Eternal’s ability to capture more market share. The quick commerce wave is real, and Blinkit’s momentum might just be too strong to ignore.
Harshal Dasani from INVasset calls this a “clear indicator of long-term potential,” citing massive YoY revenue growth in Hyperpure (90%) and quick commerce (153%).
Even on the technical charts, Eternal is holding strong above the ₹242 breakout level, with analysts expecting a near-term move toward ₹286.
So, let’s wrap up with a thought for the day:
"Sometimes, what looks like a failure on the surface is just a loud distraction from a quiet revolution underneath."
Keep building, keep learning.
See you tomorrow!
