Image Source : The Economic Times
Eternal Ltd (formerly Zomato) surged 14 percent on July 22, extending its postQ1 rally and touching a fivemonth high of Rs 276.80. The stock’s momentum defies a sharp 90 percent yearonyear drop in net profit, signaling investor confidence in its quick commerce pivot.
Key Highlights:
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Q1 FY26 net profit fell to Rs 25 crore from Rs 253 crore YoY
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Revenue jumped 70 percent YoY to Rs 7,167 crore, led by Blinkit’s explosive growth
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Blinkit’s Net Order Value rose 127 percent YoY; 243 new stores added
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Adjusted EBITDA declined 42 percent YoY to Rs 172 crore due to expansion costs
Strategic Shifts:
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Blinkit transitioned to an inventoryled model to improve margins
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Food delivery margins held steady at 5 percent despite seasonal pressure
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“Goingout” segment gained traction, now a Rs 8,000 crore annualized business
Investor Sentiment:
Despite profitability pressures, Eternal’s Rs 18,857 crore cash balance and aggressive growth strategy continue to attract bullish bets.
Source: Business Today, Financial Express
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