Buy Eternal; target of Rs 330: Motilal Oswal

Motilal Oswal's research report on Eternal

Eternal reported 1QFY26 revenue of INR72b, up 70% YoY, above our estimated growth of 62% YoY. Growth was led by Blinkit as its gross order value (GOV) increased 26% QoQ/140% YoY. The food delivery business delivered 16% YoY growth in GOV. The company expects that in FY26, net order value (NOV) growth in food delivery is unlikely to exceed 20% but should remain above 15%, with momentum building toward 20% YoY growth in FY27. PAT came in at INR250m (est. INR2.7b), down 90% YoY. For 1QFY26, revenue grew 70%, whereas adj. EBITDA declined 42% YoY. For 2QFY26, we expect revenue/adj. EBITDA to grow 66%/15% YoY. Our TP of INR330 implies a 21% upside from the current price. We reiterate our BUY rating on the stock, supported by Eternal’s market leadership in both quick commerce and food delivery, and the long-term potential of Blinkit as a generational opportunity in retail, grocery, and e-commerce disruption.

Outlook

Additionally, we ascribe a combined value of ~USD1b to Hyperpure, Going-out, and other residual businesses. We reiterate our BUY rating with a TP of INR330, implying 21% potential upside.

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Eternal - 22072025 - moti