Zomato and Blinkit’s Parent Company Sees Continuous Share Price Growth
Eternal Ltd, the parent company of Zomato and Blinkit, has achieved a remarkable milestone as its share price soared to an all-time high of Rs 311.6 on Tuesday. This surge propelled the company’s market capitalization beyond Rs 3 lakh crore, surpassing several major players in the Nifty 50 index, including Wipro, Tata Motors, and Nestle India. The impressive performance is attributed to Blinkit’s strong quarterly results and a more optimistic outlook from management, which analysts have interpreted as a significant shift in confidence.
Eternal’s Stock Surge and Market Position
Eternal Ltd’s stock price reached unprecedented heights following the release of Blinkit’s exceptional June-quarter results. The quick-commerce division reported a net order value that surpassed Zomato’s figures, leading to a positive response from the market. Analysts reacted favorably, with many revising their target prices upwards. Jefferies, for instance, upgraded its recommendation to ‘Buy’ and set a new target of Rs 400, acknowledging earlier miscalculations regarding competition risks. Emkay Global also highlighted Blinkit’s strong performance, noting a 140% year-over-year growth in gross order value and a notable improvement in adjusted EBITDA margins. This shift in management’s communication style has caught the attention of analysts, who see it as a departure from the cautious tone observed in previous quarters.
Analysts’ Mixed Views on Profitability
While some analysts express optimism about Eternal’s future, others remain cautious. Nomura projects that Blinkit will achieve break-even at the adjusted EBITDA level by the fourth quarter of FY26, although they anticipate lower absolute growth in the coming quarters due to a rationalization of marketing expenses. Conversely, Macquarie maintains a more pessimistic outlook, keeping an ‘Underperform’ rating with a target price of Rs 150. They raise concerns about Blinkit’s valuation, which currently stands at $15 billion, citing unproven economics and increasing competition in the sector. This divergence in analyst sentiment highlights the uncertainty surrounding the company’s profitability trajectory.
Market Capitalization Milestone
Eternal’s stock surge on Tuesday briefly elevated its market capitalization to Rs 3 lakh crore, surpassing several prominent companies within the Nifty 50 index. This includes well-known names such as Wipro, Tata Motors, and Asian Paints. Over the past year, Eternal’s shares have demonstrated strong performance, recording a 33% increase, with a 7% gain noted in 2025 alone. The company’s strategic direction, particularly its planned transition from a marketplace model to an inventory ownership model in the quick commerce sector, is expected to drive margin expansion in the coming quarters. Analysts are closely monitoring this shift as it could significantly impact Eternal’s financial performance moving forward.
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