Eternal is the parent company behind popular consumer tech platforms such as Zomato and Blinkit. After restructuring under a single corporate brand, Eternal now represents a diversified technology holding company operating across food delivery, quick commerce, and B2B services. Investors closely monitor the company due to its high-growth potential and volatile profitability trends.
Current Price Snapshot
The eternal share price has shown volatility ahead of and after the Q2 results. The stock saw a decline of around 4% following the earnings announcement as profit figures disappointed investors despite strong revenue growth. Analysts note that Eternal’s valuations remain elevated, factoring in long-term profitability expectations from Blinkit and Hyperpure divisions.
Q2 Results: What the Numbers Say
Eternal declared its Q2 FY26 results, and here are the major highlights:
- Net profit declined about 63% year-on-year to ₹65 crore compared to ₹176 crore last year.
- Revenue from operations surged nearly 183% year-on-year to ₹13,590 crore.
- Operating margins contracted as marketing and expansion expenses rose sharply.
- Blinkit continued to grow rapidly, with orders up nearly 30% quarter-on-quarter.
- The Hyperpure segment improved sequentially but remains in the investment phase.
Management attributed the profit drop to planned spending on growth and infrastructure, noting that the company remains focused on scaling its logistics and quick-commerce network while driving efficiency improvements in the second half of FY26.
Dividend, Bonus & Buyback
Despite the large revenue jump, Eternal did not announce any dividend, bonus, or buyback during this quarter. The company has chosen to reinvest profits into expanding its quick-commerce and logistics operations rather than distributing cash to shareholders. This approach aligns with its long-term growth-oriented capital strategy.
Corporate Events & Strategic Moves
Eternal’s board also approved the creation of a not-for-profit subsidiary, the Eternal Foundation, which will handle CSR initiatives and social impact projects. Additionally, the company reaffirmed its focus on Blinkit’s path to profitability and continued investments in technology and delivery infrastructure.
Stock Price Reaction & Outlook
The eternal share price fell around 4% immediately after the Q2 results announcement, reflecting investor concern about the sharp profit decline. However, analysts suggest that the correction might be short-lived given strong revenue momentum and improved order frequency across verticals.
Market sentiment remains cautiously optimistic. If Eternal delivers sustained margin recovery and better cost discipline in the coming quarters, the stock could stabilize and regain upward momentum. For now, investors are watching closely for signals of profitability improvement in Blinkit and the core Zomato platform.
Is Eternal a Multibagger Stock?
Whether Eternal can become a multibagger stock will depend on its ability to translate high revenue growth into consistent profits. The company has a robust ecosystem, strong brand recall, and presence in two rapidly growing industries — food delivery and quick commerce. However, given current market valuations, the stock’s upside potential depends on execution, cost control, and long-term margin expansion.
Disclaimer
This article is for informational purposes only and should not be considered investment advice. Investors are encouraged to perform their own analysis or consult a qualified financial adviser before investing. Past performance is not a guarantee of future results, and market conditions can change rapidly.
Frequently Asked Questions (FAQs)
Q1: What were the key highlights of Eternal’s Q2 results?
Eternal reported a 63% YoY drop in profit to ₹65 crore but saw a 183% jump in revenue to ₹13,590 crore. The decline in profit was mainly due to higher marketing and expansion costs.
Q2: Did Eternal announce any dividend for Q2 FY26?
No, Eternal did not declare any dividend, bonus, or buyback in this quarter. The company plans to reinvest its earnings into growth and operational expansion.
Q3: How has the eternal share price reacted to the Q2 results?
The share price fell by about 4% after the results were announced. Analysts attribute this to profit compression despite robust revenue growth, though long-term sentiment remains positive.
