Jefferies described Eternal as an “FPI favourite”, citing strong growth and steady margin improvement across both quick commerce and food delivery. “The stock is trading 25% off its peak, offering an improving risk-reward profile,” Jefferies analyst Mahesh Nandurkar said in a note dated February 2.
Jefferies has set a street-high target price of Rs 480 per share on Eternal shares, underlining its bullish stance on the company’s quick commerce opportunity. The brokerage estimates an upside of 75% from current levels.
“In our base case, we expect a 16% CAGR in food delivery revenue over FY25–28,” Jefferies said. It expects unit economics to improve steadily with scale, driven by operating leverage, cost efficiencies and a rising willingness to pay for convenience.
Jefferies values Eternal’s food delivery business at 40x March 2028E adjusted EBITDA, quick commerce at 2.5x March 2028E revenues, and the Going-Out segment at 1.5x gross order value (GOV) to arrive at its Rs 480 price target.
The brokerage flagged two key positives. First, Blinkit reported positive EBITDA despite peak competitive intensity, reflecting strong execution aided by higher average order values, improved mix, a shift to the 1P model and benefits from past investments. Second, Deepinder Goyal stepping down as CEO and handing over the role to Albinder Dhindsa was highlighted as a governance milestone, though Jefferies said there would be no near-term operational impact, with both continuing their existing responsibilities.
Eternal Q3 snapshot
Eternal’s consolidated net profit jumped 73% YoY to Rs 102 crore from Rs 59 crore in Q3FY25, while the bottom line rose 57% sequentially.Adjusted EBITDA increased 28% YoY to Rs 364 crore and surged 63% QoQ from Rs 224 crore in Q2FY26. B2C NOV grew 55% YoY and 11% QoQ to Rs 25,732 crore, crossing Rs 1 lakh crore on an annualised basis.
Revenue from operations surged 202% YoY to Rs 16,315 crore in Q3FY26, compared with Rs 5,405 crore a year ago, and rose 20% quarter-on-quarter.
Food delivery NOV growth continued to recover, rising 17% YoY and 4.5% QoQ in Q3FY26, marking the second straight quarter of acceleration after bottoming at 13.1% YoY growth in Q1FY26.
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