CHENNAI: Shares of Eternal Ltd (formerly Zomato) surged sharply on Tuesday, July 22, hitting the upper circuit limit of ₹298.30 in early trade, marking a 10% gain. The rally extended further during the session, with the stock climbing as much as 14.9% to reach a record high of ₹311.60 on the BSE.
The company's strong revenue performance and its quick commerce subsidiary Blinkit’s rapid growth have reshaped investor perceptions, reinforcing the company’s transition from a food delivery player to a broader quick-commerce leader.
The sharp rise in share price came after the company reported a robust 70% year-on-year increase in revenue for the first quarter of FY26, reaching ₹7,167 crore. The revenue growth was largely driven by the strong performance of Blinkit.
Despite the revenue surge, the company’s net profit dropped significantly by 90% to ₹25 crore from ₹253 crore a year earlier. The decline was attributed to continued investments and subsidy expenses aimed at expanding the Blinkit business.
Blinkit’s net order value (NOV) and gross order value (GOV) in the first quarter (FY26) surpassed that of Zomato’s core food delivery operations for the first time. During the quarter, Blinkit recorded a GOV of ₹11,821 crore and an NOV of ₹9,230 crore, compared to food delivery’s GOV of ₹10,769 crore and NOV of ₹8,967 crore. Blinkit also reported a 155% jump in revenue to ₹2,400 crore and added 243 new dark stores, taking the total to 1,544.
The market responded positively to this strategic shift, viewing Blinkit as a key growth driver. The company reported a 62% increase in monthly transacting users to 16.9 million, underlining strong customer adoption of its quick-commerce services.
Market analysts had mixed reactions on the stock. Their target price for the Eternal to ranges from Rs 150 to Rs 400, being bullish on shifting business dynamics to bearish citing strong competition in the quick-commerce segment.
However, the investor sentiment remained upbeat driven by Eternal’s aggressive expansion and growing dominance in the fast-evolving quick-commerce space. The company has indicated that margin recovery is expected as Blinkit’s dark stores mature and reach breakeven.