ETERNAL LIMITED (ETERNAL)
Large CapConsumer stocks · Large cap · NSE
Eternal (formerly Zomato) operates India's leading food delivery (Zomato), quick commerce (Blinkit), and going-out (District) platforms. It leverages a physical moat and AI to serve over 100M customers, supporting 1M+ delivery partners, 400k+ restaurants, and 100k+ supply chain workers.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 2/4 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Excellent · 100/100Rev +182% YoY · PAT +268% YoY · margin expansion · +17% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹20,211 Cr | +182.0% | +16.9% |
| EBITDA | ₹594 Cr | +416.5% | +22.2% |
| Operating margin | 2.9% | +130 bps | +10 bps |
| PAT | ₹92 Cr | +268.0% | -47.1% |
| PAT margin | 0.5% | +11 bps | -55 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
ETERNAL's Q4FY26 consolidated Adjusted Revenue surged 186% YoY (64% LFL YoY) to INR 17,680 crore, with Adjusted EBITDA up 160% YoY to INR 429 crore. Quick commerce NOV grew 95.4% YoY, while food delivery NOV accelerated to 18.8% YoY.
ETERNAL's Q4FY26 results demonstrate strong growth across segments, particularly quick commerce, and accelerating food delivery. The 1P model shift inflates reported revenue, but LFL growth is robust. Improving profitability and strategic market expansion efforts support the long-term thesis.
Quick Commerce Assortment Expansion
Expanding SKU depth (e.g., 80k SKUs in Delhi NCR vs 50k+ in next 7 cities) drives retention, wallet share, and NAOV.
Quick Commerce Geographic Expansion
Incremental growth from cities beyond top eight, where pin code coverage is <30%; early experience in these markets has been encouraging.
Food Delivery Addressable Market Expansion
Lowered minimum order value for free delivery (INR 99 for Gold) and targeted budget-conscious customers with curated assortment.
Going-out Platform Unification
District app unifies restaurant booking, movie/concert tickets, arena reservations, and local retail, boosting engagement and retention.
Quick Commerce Stores
216 net new stores added in Q4FY26, bringing total to 2,243 stores.
Agroforestry Saplings
Targeting distribution of 2.5 million additional saplings to be planted across 10,000 acres of land in FY27.
Food Delivery Demand Signals
App opens have been trending higher over the last few quarters, signaling improving demand independent of interventions.
Distinct Category Use Cases
Quick commerce impact on food delivery growth has plateaued, suggesting the two categories have largely settled into distinct use cases.
Constructive Competition in QC
Good competition aids market expansion as multiple players invest in infrastructure, acquire customers, and build category awareness.
AI for Market Expansion
AI reduces friction for customers, delivery partners, and restaurant partners to participate, expanding the addressable market.
Quick Commerce Competition
Aggressive discounting by competitors is leading to poor-quality growth centered around select low-margin SKUs.
Financial Market Volatility
Uncertain macro environment led to lower bond prices, causing negative marked-to-market movements in debt securities.
GST Show Cause Notices
Received SCNs and orders from GST authorities regarding GST on delivery charges; ultimate outcome uncertain, though company believes it has a strong case.
Non-linear Margin Expansion
The path of Blinkit's margin expansion may not be linear given the multiple moving parts, despite confidence in reaching targets.
AI Disruption Threat
Some wonder if AI chat interfaces will become the new front door for commerce, shifting demand away from apps like ours.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY is essential for seasonal businesses like quick commerce (Q4 weakest) and going-out (lumpy). QoQ reflects sequential momentum in food delivery's acceleration and quick commerce's store additions and margin improvement. LFL YoY is key due to the 1P model shift.
Food delivery NOV growth
18.8% YoY (-0.9% QoQ), accelerating for the third quarter in a row.
Food delivery Adjusted EBITDA margin
Improved to 5.5% (as a % of NOV) with absolute Adjusted EBITDA of INR 532 crore.
Quick commerce NOV growth
Remains strong at 95.4% YoY (8.2% QoQ).
Quick commerce store count
2,243 stores as at the end of Q4FY26, with 216 net new stores added in the quarter.
Blinkit NOV Growth Target
Expects >60% NOV CAGR over the next three years, translating to the business growing to >4x its current scale.
Consolidated Adjusted EBITDA Target
Expects to reach $1 billion of Adjusted EBITDA, hopefully by FY29, driven by accelerating foundation.
Food Delivery NOV Growth Outlook
Expects growth to continue trending toward the long-term expectation of 20%+ YoY NOV growth.
District NOV & Adjusted EBITDA Target
Guided toward $3 billion in NOV and $150 million in Adjusted EBITDA by FY30, implying approximately 30%+ YoY NOV growth.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Blinkit NOV Growth | 95.4% YoY (8.2% QoQ) | Sustained growth towards >60% CAGR over next three years and a strong QoQ bounceback in Q1FY27. |
| Food Delivery NOV Growth | 18.8% YoY | Continued acceleration towards the long-term expectation of 20%+ YoY growth. |
| Blinkit Adjusted EBITDA Margin | 0.3% of NOV (INR 37 crore) | Progress towards the 5-6% steady-state Adjusted EBITDA margin guidance. |
| Consolidated Adjusted EBITDA | INR 429 crore | Trajectory towards the $1 billion Adjusted EBITDA target by FY29. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
We don't expect net working capital to be beyond 18 days.
"we don't expect net working capital to be beyond those 18 days"
Our confidence on margins going to 5% to 6% of NOV remains high in the long term.
"our confidence on margins going to 5% to 6% of NOV remains high"
Outcome check: OPM moved from 2.0% to average 3.0% (+1.0 pp).
We now expect the losses in the going-out business to come down sequentially from here towards breakeven in the next four to six quarters.
"we now expect the losses to come down sequentially from here towards breakeven in the next four to six quarters"
Outcome check: OPM moved from 2.0% to average 3.0% (+1.0 pp).
The ROCE outcome should still be north of 40%.
"the ROCE outcome should still be north of 40%"
Trend score and candlestick chart
57NeutralSMA20 +8.4% / mo · MACD −
Technical chart
ETERNALdaily · 1Y · AUTO+34.4%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 57. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~7.8% over last month) — short-term momentum positive.
- RSI(14) at 57 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 12% off 52W high · 52% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 20.6% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +2.2%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 25 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 25 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 7/9.
- Growth contributes 13/25 to the score.
- Balance sheet contributes 5/15 to the score.
Main drags
- Fair-value margin of safety is negative at -1907.5%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Quality is weaker at 0/20; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Management has 50% delivered/partly-delivered outcomes on 2 checked claims, with 1 adverse claim outcome. It ranks around the 59th percentile of the scored universe and 64th percentile within Consumer. Main check: financial discipline is weak at 40/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: ROCE is low at 2.5%.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Consumer: 64th pctile, median 66 · Large: 35th pctile, median 73
49 documents have extracted text, but claim history is not strong enough yet.
2/4 claims checked · 1 contradicted/failed claim
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.4%.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸3/4 latest quarters had positive YoY PAT growth.
Trust risks
- ▸ROCE is low at 2.5%.
- ▸ROE is low at 0.4%.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
- ▸Profit margin is 2.5%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 719.00
- P/B
- 10.06
- EV/EBITDA
- 89.89
- Market Cap
- 311465.00Cr
Profitability
- ROE
- 0.38%
- ROCE
- 2.48%
- ROA
- 1.06%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 94.00%
- EPS 5Y
- 17.00%
- Revenue 3Y
- 97.00%
- EPS 3Y
- 28.00%
Balance Sheet
- Debt/Equity
- 0.15
- Interest Coverage
- 3.54×
- Altman Z
- 9.10
- Book Value
- 32.10
Cash Flow
- FCF Yield
- 0.38%
- FCF Positive Y
- 2/5
- OCF
- 632.00 Cr
- EPS TTM
- 0.46
Shareholding
- Promoter Hold
- —
- Promoter Pledge
- 0.00%
- Momentum 52W
- 71%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Consumer, ranked by similarity
Peers
Business-comparable names in Consumer, ranked by similarity
Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.