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Eternal shares jump 3% after Q1 results. Jefferies, CLSA and 4 other brokerages weigh in

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Eternal shares jump 3% after Q1 results. Jefferies, CLSA and 4 other brokerages weigh in
Shares of food delivery giant Eternal rose 3% to Rs 291 on the BSE on Thursday after it reported a consolidated profit of Rs 87 crore for the first quarter of FY27, marking an 11% decline from Rs 98 crore posted in the same period last year. The net profit is attributable to the owners of the parent company.

The company’s revenue from operations came in at Rs 20,211 crore, a massive 182% jump from Rs 7,167 crore reported in the corresponding quarter of the previous financial year, Eternal said in a regulatory filing.

On a sequential basis, net profit declined 47% from Rs 174 crore posted in the previous quarter. Revenue from operations, on the other hand, rose 17% from Rs 17,292 crore, according to the company’s exchange filing.

Eternal shares: Buy, sell or hold?

JPMorgan maintained its Overweight rating on Eternal with a target price of Rs 390 (38% upside), calling the quarter strong but broadly in line with expectations, with growth accelerating across quick commerce, food delivery and District.CLSA retained its High Conviction Outperform rating on Eternal with a target price of Rs 506 (79% upside), saying the company’s Q1FY27 results reinforced its view of strong execution. Both quick commerce and food delivery posted faster growth, while profitability improved despite elevated competition.

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Blinkit reported faster NOV growth along with greater confidence in profitability and cash generation. Zomato‘s growth accelerated to its fastest pace in six quarters, with limited impact from emerging no-commission platforms. Meanwhile, newer businesses such as District and Bistro continued to expand the ecosystem and drive customer engagement.
Jefferies maintained its Buy rating on Eternal with a target price of Rs 415, saying the first quarter reinforced the importance of quality growth over simply chasing market share. Food delivery growth accelerated alongside better-than-expected profitability, while quick commerce performance remained strong despite falling short of optimistic forecasts. The key takeaway for the brokerage was management’s growing confidence that competitive intensity in quick commerce has become more predictable and that value-led food delivery is unsustainable.
Blinkit does not favour a short-term discounting strategy, and management indicated it is comfortable with the broader market growing faster as a result.
Nomura retained its Buy rating on Eternal with a target price of Rs 350, implying a 24% upside, citing improving quick commerce profitability despite intense competition. Blinkit added 200 stores during the quarter, taking its total store count to 2,443. Management expects margins to continue improving, with competitive intensity having peaked in Q1FY27 and becoming more predictable.

Eternal now expects Blinkit’s steady-state EBITDA margin to reach 6% of NOV, compared with its earlier estimate of 5-6%, driven by efficiencies from larger stores and warehouses, deeper assortments, and better working capital management. The company expects net working capital days to decline from 18 to 12 in the steady state. Nomura forecasts 57-74% year-on-year NOV growth and adjusted EBITDA margins of 0.9-2% in FY27-28F.

Also read:
Will Blinkit growth sustain amid competition? 5 things to know from Eternal’s shareholder letter

Motilal Oswal maintained its positive view on Eternal with a target price of Rs 400, implying a 41% upside. Management guided towards the higher end of its long-term margin range, with a reported EBIT margin of around 4% and an adjusted EBITDA margin of around 6%, compared with its earlier guidance range of 5-6%.

This came despite the recent increase in take rates not yet translating into contribution margin gains, which management attributed to minimum wage hikes across several states and the opening of larger stores. With the business model now established and competition becoming more predictable, management expects structurally higher margins going forward.

Motilal Oswal noted that continued elevated competition could affect near-term gains but viewed the guidance upgrade positively. The brokerage said management’s long-term target of 60% NOV growth and an EBITDA target of USD 1 billion by FY29 appear increasingly achievable, with its estimates continuing to factor in this long-term trajectory.

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Emkay retained its Buy rating on Eternal and raised its target price by 8.1% to Rs 400 from Rs 370 after the company’s Q1FY27 results exceeded expectations. Emkay expects competitive intensity to remain elevated during the upcoming festive season but said Blinkit has demonstrated its ability to retain market share while maintaining profitability. The brokerage raised its FY27E and FY28E quick commerce NOV estimates by 5.4% and 8%, respectively, citing strong growth momentum. It retained its positive view based on Eternal’s strong execution in quick commerce, steady food delivery momentum, and adequate cash reserves.

Read more:Eternal Q1 Results: Cons PAT skyrockets 268% YoY to Rs 92 crore; revenue zooms 182%

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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Business

FareShare North East ‘devastated’ by Middlesbrough break-in

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Rachel, a woman with straight shoulder-length blonde hair wearing a graduation cap. She has a nose stud, and wears light pink lipstick.

A charity distributing food to the most needy said it had been “devastated” after thieves smashed their way into its warehouse, leaving tonnes of supplies ruined.

They broke into the Teesside base of FareShare North East on Tuesday and cut the power to the charity’s walk-in freezer and chiller units, meaning perishables like milk and meat had to be thrown out.

The charity said it lost 16 tonnes of food – the equivalent of 7,000 meals.

Middlesbrough hub manager Natasha Flanagan said it was “heartbreaking”, adding: “We’ve got a really great team of volunteers and staff and we try our best every day to get food out to people that need it.”

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FareShare North East redistributes food donated by supermarkets from its warehouses in Newcastle and Middlesbrough to more than 200 community groups, including food banks.

The charity has been in Middlesbrough since 2023 and moved to its new base on Skippers Lane about four months ago.

Flanagan uncovered the damage when she arrived for work.

She said: “Lockers were ransacked, the staff drawers in the main warehouse were ransacked, and then I’ve seen the chiller doors were left open and the freezer door which has caused significant damage to food.

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“Honestly it’s heartbreaking and we do really good things here.”

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How Christopher O’Reilly Palm Beach Built a Career Exploring the Bahamas by Yacht

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How Christopher O’Reilly Palm Beach Built a Career Exploring the Bahamas by Yacht

Christopher O’Reilly Palm Beach has spent much of his career navigating some of the Caribbean’s most beautiful waters. Raised in Greenwich, Connecticut, he grew up sailing on Long Island Sound and developed an early appreciation for life on the water. What began as a childhood passion eventually became a career operating motor yachts throughout South Florida and the Bahamas.

After attending Brunswick School and Fairfield University, O’Reilly began working in the Marine Department at Riverside Yacht Club. He later earned his Merchant Mariner Credential and entered the yachting industry full-time, advancing from mate to captain aboard motor yachts up to 126 feet in length.

Much of his career has centered on captaining yachts throughout the Bahamas. Operating from Nassau, he guided guests to some of the country’s most sought-after destinations, including Harbour Island, known locally as Briland, Spanish Wells, Rose Island, and the Exumas.

Trips often included snorkeling at Thunderball Grotto, exploring the Exuma Cays Land and Sea Park, visiting Rocky Dundas Cave, stopping at Danger Reef, and taking guests to Big Major Cay to see the famous swimming pigs.

In 2019, O’Reilly was featured by Select Yachts after being named captain of the motor yacht Lady Sharon Gale. The recognition reflected years of experience managing vessels, planning voyages, and creating memorable experiences for guests throughout the Bahamas.

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Today, he continues to share his knowledge of Bahamas yachting, navigation, and destination planning while remaining closely connected to the boating lifestyle he has built his career around.

What first inspired you to work on the water?

Growing up in Greenwich, Connecticut, I spent a lot of time sailing on Long Island Sound. I enjoyed hockey growing up, but the water always pulled me in. I liked the freedom of it and the fact that every day felt different.

Once I started spending time around marinas and yacht crews, I realized there was an entire industry built around boating and travel. That opened my eyes to what was possible.

What attracted you to captaining yachts in the Bahamas?

The Bahamas offers something different every day. You can leave Nassau in the morning and be anchored off a quiet cay a few hours later. Every island has its own character.

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I enjoyed helping guests experience places they might never have discovered on their own. A lot of people arrive with a few destinations in mind, but by the end of the trip, they have new favorites.

What were some of the most popular routes you captained?

Harbour Island and Spanish Wells were always requested. Guests loved the atmosphere and the boating culture around those areas.

The Exumas were another favorite because of the variety. One day, we might be snorkeling at Thunderball Grotto. The next day, we could explore the Exuma Cays Land and Sea Park or head to Big Major Cay.

Rose Island was popular for shorter day trips from Nassau. Guests could spend the day swimming, relaxing on the beach, and enjoying jet skis without committing to a longer voyage.

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What makes the Exumas so special?

The diversity.

You have remote anchorages, incredible snorkeling, marine parks, sandbars, caves, and wildlife all within a relatively small area. The water itself is unlike almost anywhere else.

I remember guests arriving with high expectations because they had seen photos online. Almost every time, they would say the water looked even better in person.

What destination surprised guests the most?

Rocky Dundas Cave.

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Many guests had never heard of it before arriving. Once they swam inside and saw the limestone formations, it became one of the most talked-about parts of the trip.

Thunderball Grotto was another location that always impressed people. The combination of the cave structure and marine life creates a very unique experience.

What do people misunderstand about yacht travel in the Bahamas?

Many people think it is all about luxury.

What makes it memorable is access. A yacht allows you to experience places that are difficult to reach any other way. You can anchor near an empty beach, explore a remote cay, or spend the afternoon in an area with very few people around.

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That flexibility changes the entire experience.

What happens behind the scenes to make those trips successful?

Planning.

You are constantly monitoring weather, tides, navigation routes, fuel consumption, and timing. Guests see the destinations. The crew is thinking about everything that needs to happen to get there safely and efficiently.

A smooth trip usually reflects extensive preparation before the yacht ever leaves the dock.

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What skills matter most for a yacht captain?

Situational awareness is a big one.

You need to understand conditions, anticipate changes, and make good decisions before problems develop.

Communication is also important. Guests want to enjoy themselves. The crew needs to stay coordinated. Clear communication helps everything run smoothly.

What advice would you give someone interested in a career in yachting?

Spend time around the industry.

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Visit marinas. Talk to captains and crew members. Learn how boats operate. The best education often comes from being around experienced people and paying attention.

Yachting offers opportunities to travel, learn, and build practical skills. It rewards people who are willing to work hard and stay adaptable.

What does success mean to you today?

Creating great experiences for people and doing things right.

Some of the most rewarding moments came when guests finished a trip and immediately started talking about when they wanted to come back.

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When people leave with memories they will talk about for years, that feels like success.

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At Close of Business podcast July 23 2026

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At Close of Business podcast July 23 2026

Tom Zaunmayr speaks with Mark Beyer about DevelopmentWA’s residential land developments in the Pilbara.

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Goosehead Insurance, Inc. (GSHD) Q2 2026 Earnings Call Transcript

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript