Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by strategic shifts and market expansion, despite manageable margin pressures.
Basis of our Recommendation
Eternal Limited is experiencing robust growth across its business segments, particularly in quick commerce and food delivery, driven by strategic shifts and market expansion. The company is optimistic about significant revenue increases, with a focus on enhancing operational efficiency through AI integration. However, it faces challenges from competitive pressures and margin constraints due to rising costs and aggressive discounting.
Why We Like This Stock
- Transition to a 1P model in quick commerce boosting revenue
- Expected doubling of annual Net Order Value to $20 billion within two years
- Strong growth potential in Blinkit with over 60% CAGR projected
Things To Watch Out For
- High competition leading to aggressive discounting
- Margin pressures from increased costs and regulatory challenges
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 12,114 | 20,243 | 54,364 | 92,354 | 128,986 |
| Profit Before Tax (Cr.) | 163 | 557 | 615 | 2,387 | 3,823 |
| PBT Margin | 1.3% | 2.8% | 1.1% | 2.6% | 3.0% |
| Net Profit (Cr.) | 162 | 372 | 296 | 1,790 | 2,867 |
| EPS | 0.2 | 0.4 | 0.3 | 1.9 | 3.1 |
Company Overview
Show Company Profile
Eternal Limited, together with its subsidiaries, provides e-commerce platform services to restaurant partners, quick commerce merchants, delivery partners, theatres, and event organizers in India and internationally. It operates through India Food Ordering and Delivery, Hyperpure Supplies (B2B Business), Quick Commerce, and Going Out segments. The company offers a B2C technology platform under the Zomato brand that facilitates listing and online ordering of food items by connecting end users, restaurant partners, and independent delivery partners, as well as food rescue, food on train, food expense management solution for corporates streamlining reimbursement process, scheduled orders, and group ordering services; and B2B supplies solutions under the Hyperpure brand that supplies value added food ingredients and kitchen products to restaurants and other B2B buyers, as well as 4PL warehousing and supply chain services. It also provides quick commerce services under the Blinkit brand that provides on-demand delivery of products across various categories, such as daily essentials, electronics, beauty and personal care, home decor and appliances, toys and games, general merchandise, music instruments, gym essentials, and apparel, as well as warehousing and ancillary services to the sellers on the marketplace; and entertainment services, including dining-out, movies, sports, and live event ticketing through its District app, as well as event organizing, production, and management. In addition, the company offers payment aggregator and gateway, financing and investment, trading, advertisement, and subscriptions services; and operates internet portals. The company has a strategic collaboration with OpenAI for AI deployments across its applications, partner platforms and internal systems. The company was formerly known as Zomato Limited and changed its name to Eternal Limited in March 2025. Eternal Limited was founded in 2008 and is headquartered in Gurugram, India.