Eternal shares 15% rally to hit new high; mcap hit Rs 3 lakh cr mark to pip BEL

Shares of Eternal, the parent company of food delivery giant Zomato, surged 15 per cent during the trading session on Tuesday after the company reported a blockbuster performance in the June 2025 quarter. The quick commerce (QC) player has surged more than 21 per cent in the last two sessions to hit new highs as it pipped Bharat Electronics in terms of market capitalization.
 

Eternal shares on a new high

Shares of Eternal surged 14.85 per cent to scale all new record highs at Rs 311.60 on Tuesday with its total market capitalization standing slightly above Rs 3 lakh crore mark. The stock was seen around Rs 257 on Monday and has soared more than 21 per cent in the last two trading sessions. It is up 65 per cent from its 52-week low at Rs 189.60 hit in April 2025.
 

Eternal pips BEL in mcap

As Eternal added nearly Rs 52,000 crore in the last two sessions to scale Rs 3 lakh crore mcap, it raced past companies like Bharat Electronics (BEL), paving its way in the top-25 most valued companies in India. It is already ahead of companies like Wipro, Power Grid and Avenue SuperMarts. It is lagging the likes of Adani Enterprises and ONGC in terms of mcap.
 

What triggered this rally?

Eternal reported robust financial results for the first quarter of FY26. The company posted a 67 per cent year-on-year (YoY) and 22 per cent sequential (QoQ) growth in adjusted consolidated revenue, reaching Rs 7,563 crore in Q1. Quick commerce emerged as the standout performer, with net order value (NOV) rising 127 per cent YoY year and 25 per cent QoQ to Rs 9,203 crore.

It is the first time when quick commerce NOV has surpassed that of food delivery. Eternal added 243 new dark stores during the quarter, bringing the total to 1,544, even as it began moderating expansion to focus on operational efficiency. Profitability metrics also showed signs of recovery. Margins improved from -2.4 per cent of NOV in the previous quarter to -1.8 per cent.

Eternal posted a 90.12 per cent YoY drop in its June 2025 quarter (Q1FY26) consolidated net profit at Rs 25 crore as against Rs 253 crore in the year-ago period. However, this was offset by topline growth as its revenue from operations improved significantly by 70.40 per cent to Rs 7,167 crore driven by the rapid rise of its quick commerce vertical Blinkit.
 

Brokerage views & target prices

Eternal once again surprised us positively on Blinkit. This time though, the surprise was more on management commentary than the reported numbers, as it was quite a contrast to the cautious tone post 4QFY25 results, said JM Financial. It has a ‘buy’ rating on the stock with a target price of Rs 320 on the stock.

Other domestic brokerages including Elara Capital, Motilal Oswal and  Nuvama Institutional Equities have maintained their ‘buy’ stance on the stock with target prices of Rs 340, Rs 330 and Rs 320 apiece, respectively. Nirmal Bang, which recently initiated coverage on the stock, has a target price of Rs 321 on the stock.

Global brokerage firms also gave Eternal a thumbs-up after its Q1 earnings. Analysts from Jefferies have upgraded the stock to ‘buy’ with a target price of Rs 400 on the stock, while CLSA maintained its ‘outperform’ stance with a target price of Rs 385 apiece.