{"id":41814,"date":"2025-07-22T11:35:23","date_gmt":"2025-07-22T11:35:23","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/07\/22\/why-eternals-share-price-is-rising-despite-a-90-drop-in-q1-net-profit\/"},"modified":"2025-07-22T11:35:23","modified_gmt":"2025-07-22T11:35:23","slug":"why-eternals-share-price-is-rising-despite-a-90-drop-in-q1-net-profit","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/07\/22\/why-eternals-share-price-is-rising-despite-a-90-drop-in-q1-net-profit\/","title":{"rendered":"Why Eternal\u2019s share price is rising despite a 90% drop in Q1 net profit"},"content":{"rendered":"
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Eternal (formerly Zomato) caught the Dalal Street off guard as its share price kept climbing despite a whopping 90% drop in Q1 net profit.<\/p>\n

At the time of publication, Eternal’s share price is trading at Rs 299.75, 10.32% up from its previous close and very close to its 52-week high of Rs 311.25.<\/p>\n

The company posted a sharp 90% drop in net profit <\/a>for Q1 FY26 at Rs 25 crore versus Rs 253 crore a year ago, but the stock didn\u2019t flinch.<\/p>\n

Instead, it powered to record highs, as investors looked past the bottom line and doubled down on the broader growth narrative.<\/p>\n

Why Eternal’s share price is climbing?<\/h2>\n

What really stole the spotlight was revenue.<\/p>\n

The company\u2019s topline jumped 70% year-on-year to Rs 7,167 crore, thanks largely to Blinkit.<\/p>\n

The quick commerce arm more than tripled its revenue to Rs 2,400 crore this quarter, officially overtaking the traditional food delivery business for the first time.<\/p>\n

The rise of Blinkit is starting to reshape Eternal\u2019s identity. Once known primarily for food delivery, the company is now leaning heavily into quick commerce, and investors are paying attention.<\/p>\n

Blinkit\u2019s rapid growth, with its annual order value climbing to $10 billion, has turned it into Eternal\u2019s main engine of expansion.<\/p>\n

That momentum seems to be outweighing concerns about falling profits, as the market shifts focus from short-term earnings to the company\u2019s longer-term play in India\u2019s evolving digital consumer landscape.<\/p>\n

What’s behind net profit drop?<\/h2>\n

Eternal\u2019s sharp drop in profits is largely the result of its ongoing push to expand Blinkit and move into new areas like ticketing and events.<\/p>\n

These bets are expensive, with upfront spending on logistics, tech, and marketing continuing to drag down net margins.<\/p>\n

Even so, there are early signs that the company\u2019s investments are starting to pay off.<\/p>\n

Margins in the core food delivery business improved to 5.0% from 3.9% a year ago, and Blinkit also managed to trim its losses while boosting efficiency, a promising trend as it scales up.<\/p>\n

What analysts say?<\/h2>\n

Jefferies and Bernstein have turned more optimistic on Eternal, bumping up their ratings and price targets after Blinkit\u2019s latest numbers blew past expectations.<\/p>\n

The quick commerce arm\u2019s blistering pace of growth caught the Street\u2019s attention, with analysts calling it the company\u2019s clear engine of momentum.<\/p>\n

But the verdict isn\u2019t unanimous. A few brokerages flagged continued pressure on margins and questioned whether the current valuation leaves enough room for upside.<\/p>\n

Still, most are staying constructive. As of Tuesday, 28 of the 32 analysts tracking the stock maintained a \u2018Buy\u2019 rating, signaling that, for now, the market is willing to back Blinkit\u2019s scale-up story, even if profitability takes a back seat.<\/p>\n

Eternal CEO Deepinder Goyal struck an assured tone<\/a> after the earnings release, making it clear the company isn’t chasing short-term profit at the expense of long-term growth.<\/p>\n

He framed Blinkit\u2019s rapid expansion and its shift to an inventory-led model not as a cost burden, but as a strategic move to cement leadership in a space that’s still taking shape.<\/p>\n

The post Why Eternal’s share price is rising despite a 90% drop in Q1 net profit<\/a> appeared first on Invezz<\/a><\/p>\n

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Eternal (formerly Zomato) caught the Dalal Street off guard as its share price kept climbing despite a whopping 90% drop in Q1 net profit. At the time of publication, Eternal’s share price is trading at Rs 299.75, 10.32% up from its previous close and very close to its 52-week high of Rs 311.25. The company <\/p>\n","protected":false},"author":1,"featured_media":41815,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-41814","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/41814","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=41814"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/41814\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/41815"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=41814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=41814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=41814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}