In a surprising turn of events, Eternal Ltd (formerly Zomato) witnessed a strong rally in its stock price on July 22, even after reporting a sharp 90% year-on-year fall in net profit for the April–June quarter of FY26.

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Stock Hits All-Time High Revenue Grows Despite Profit Decline EBITDA Takes a Hit What Are Brokerages Saying?

Eternal’s Q1 net profit came in at just ₹25 crore, significantly lower than ₹253 crore in the same period last year. However, the stock defied expectations and continued its bullish momentum in Tuesday’s early session.

Stock Hits All-Time High

At around 9:40 AM, Eternal shares were trading at ₹311.25, up by 11% on the NSE. This rise follows a 7% jump in the previous session, driven by investor optimism around the company’s overall revenue growth and Blinkit’s performance.

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Revenue Grows Despite Profit Decline

While the profit figure disappointed many, Eternal’s revenue grew 70% YoY to ₹7,167 crore in Q1. This strong topline growth appears to have reassured the market.

Despite the steep fall in earnings, investors focused on the company’s growing scale and the success of its quick commerce arm, Blinkit.

Blinkit Races Ahead of Zomato

A key highlight this quarter was Blinkit outperforming Zomato’s core food delivery segment.

Blinkit posted ₹2,400 crore in revenue,
while Zomato’s food delivery business brought in ₹2,261 crore.

This marks a significant shift, showcasing the rising dominance of quick commerce in the company’s business model.

Check This: Eternal Stock Price

EBITDA Takes a Hit

On the profitability front, consolidated EBITDA fell 35% YoY to ₹115 crore, indicating higher costs or operational challenges despite strong revenue.

What Are Brokerages Saying?

Analysts expect competitive intensity to remain high, which might weigh on margins in the near term. Yet, with Blinkit’s rising contribution and overall revenue growth, Eternal seems to be entering a new phase of business transformation.

Key Takeaways:

Eternal Q1 FY26 profit plunges 90% YoY to ₹25 crore
Revenue jumps 70% YoY to ₹7,167 crore
Blinkit revenue surpasses Zomato food delivery
EBITDA down 35% YoY to ₹115 crore
Stock hits ₹311.25, up 11% intraday

Should You Buy, Sell, or Hold Eternal?

While profits took a hit, investors are clearly betting on long-term growth from Blinkit and quick commerce. If you’re already invested, it may be wise to hold and watch how the company manages profitability in upcoming quarters. New investors should evaluate carefully, given the rising valuations and ongoing competition.