Eternal stock: Emkay lifts target as Blinkit expansion accelerates
Published on 10/30/2026 at 09:38 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSGrowth comes with execution costs
- Eternal's September-quarter revenue rose strongly, while profit remained below analyst expectations.
- Blinkit's rapid store rollout is strengthening the quick-commerce platform but may weigh on near-term earnings.
- Emkay raised its target after the results while reducing near-term EBITDA estimates.
Eternal delivered strong top-line growth in the quarter ended September 30, 2026, but its profit missed analyst expectations as the company accelerated Blinkit's expansion. The figures and brokerage assessments were reported by Fortune India on October 22, 2026.
Revenue growth outpaces profit
Revenue from operations climbed 77.6 percent year over year to INR 24,138 crore in Q2 FY27, compared with INR 13,590 crore a year earlier. Consolidated net profit rose 92.3 percent to INR 125 crore from INR 65 crore, but fell short of the average analyst estimate of INR 271 crore.
EBITDA increased to INR 752 crore from INR 239 crore, while the margin widened to 3.1 percent from 1.8 percent. Total expenses also rose 74.9 percent to INR 24,166 crore, illustrating the pressure created by a rapidly expanding operating footprint.
Blinkit sets the operating agenda
Blinkit remained the main growth engine. Its net order value rose 79.3 percent year over year to INR 20,940 crore, and the quick-commerce business added 308 stores, taking its network to 2,751 locations.
Eternal raised its store-count target to more than 3,500 by March 2027 from 3,000 previously, and to 5,000 by March 2028. Adjusted EBITDA at Blinkit improved to INR 184 crore from a loss of INR 156 crore a year earlier. The faster rollout could improve scale and unit economics, although expansion spending may keep near-term earnings under pressure.
Brokerages weigh growth against costs
Emkay Global retained its Buy rating and raised its target price by 5 percent to INR 420. At the same time, it cut its FY27 and FY28 EBITDA estimates by about 10 percent each because of the quicker store rollout. The brokerage raised its FY29 and FY30 estimates, pointing to potential benefits from greater scale and improving unit economics.
Motilal Oswal also retained a Buy rating and an INR 420 target. Eternal's next operating test is whether Blinkit's network growth can translate into stronger profitability without allowing expansion costs to absorb the benefits of scale.
Eternal Limited
- ISIN: INE758T01015
- Reporting period: Second quarter of fiscal 2027, ended September 30, 2026
- Revenue from operations: INR 24,138 crore
- Consolidated net profit: INR 125 crore
- Blinkit network: 2,751 stores
- Emkay target price: INR 420
Indian equities form the broader market context for Eternal stock; investors can follow the BSE Sensex.
More updates on the company are available under More news and analyses on Eternal stock.
