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Eternal Share Price Soars After Q1 Results; Brokerages See Up to 75% Upside, Raise Target Prices

Posted on 23rd Jul 2026 11:48 am by rohit kumar

While the broader stock market traded in the red on July 23, shares of Eternal Ltd (formerly Zomato) bucked the trend and emerged among the top gainers on the Nifty 50.

 

The stock climbed nearly 3% to ₹293 after the company announced its Q1 FY2026-27 results, with investors taking comfort from positive commentary by leading brokerage firms.

 

Despite quarterly profit coming in below market expectations, analysts remained optimistic, citing strong execution in the company's food delivery and quick commerce businesses.

 

Why Did Eternal Shares Rise?

 

Brokerages focused less on the earnings miss and more on the company's long-term growth drivers.

 

According to analysts, the key positives include:

 

Strong growth in the food delivery business

Continued expansion of Blinkit's quick commerce operations

Improving profitability at Blinkit

Management's confidence that competitive intensity remains manageable

Healthy long-term growth outlook

 

These factors helped boost investor confidence despite softer quarterly profit.

 

Eternal Q1 Results: What Impressed Analysts?

 

Although Eternal's net profit missed estimates, brokerages highlighted the company's improving operational performance.

 

Analysts believe the company's investment strategy in quick commerce is beginning to deliver results, while the food delivery segment continues to generate steady growth.

 

Management also reassured investors that competition remains under control, easing concerns over pricing pressure.

 

Brokerages Remain Bullish on Eternal

 

Following the Q1 results, several global brokerage firms reiterated positive ratings and raised confidence in the stock.

 

CLSA

Rating: High Conviction Outperform

Target Price: ₹506

Potential Upside: Around 75%

 

CLSA remains the most bullish brokerage, expecting significant upside from current levels.

 

JPMorgan

Rating: Overweight

Target Price: ₹390

Potential Upside: Around 35%

 

The brokerage continues to see strong long-term growth prospects.

 

Jefferies

Rating: Buy

Target Price: ₹415

Potential Upside: Around 43%

 

Jefferies remains optimistic about Eternal's execution across business segments.

 

Nomura

Rating: Buy

Target Price: ₹350

Potential Upside: Around 21%

 

Nomura expects sustained growth in the company's core businesses.

 

HSBC

Rating: Buy

Target Price: ₹340

Potential Upside: Around 17%

 

HSBC believes improving operating metrics support the company's long-term valuation.

 

Blinkit Continues to Be a Key Growth Driver

 

Brokerages believe Blinkit remains one of Eternal's biggest long-term opportunities.

 

Key positives include:

 

Better profitability

Higher order volumes

Expanding dark store network

Improving operational efficiency

 

The quick commerce business is increasingly becoming an important contributor to the company's future earnings.

 

Why Investors Are Optimistic

 

Market participants remain positive because of:

 

Strong food delivery growth

Improving Blinkit margins

Healthy revenue momentum

Stable competitive environment

Positive management commentary

Bullish brokerage target prices

 

These factors outweighed concerns over the quarterly earnings miss.

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