Shares of Eternal will be in focus heading into trade after reporting its third-quarter earnings for the financial year ending March 2026. The company also confirmed Deepinder Goyal will step down as Group CEO and will be replaced by BlinkIt's top boss, Albinder Dhindsa.
As far as Eternal's Q3 results are concerned, the company's net profit nearly doubled in the third quarter of the current financial year, even as it missed street expectations. Margin improvement came from supply chain cost efficiencies, a favourable shift towards long tail categories and operating leverage, the company said.
In light of these developments, a slew of brokerages offered their perspective on Eternal, with Jefferies notably citing that the change in management will not impact the company's near-term execution. They also noted BlinkIt breaking even as well as an improvement in the food delivery business.
Consolidated net profit jumped to Rs 102 crore in the October-December period, compared to Rs 59 crore in the corresponding quarter last year, according to a stock exchange filing. Analysts' consensus estimates compiled by Bloomberg projected Rs 115 crore.
Eternal Q3 Results (Consolidated, YoY)
- Revenue Rs 16,315 crore vs Rs 5405 crore (Bloomberg estimate: Rs 16,224 crore)
- Ebitda Rs 368 crore vs Rs 162 crore (Estimate: Rs 333 crore)
- Margin at 2.3% vs 3% (Estimate: 2.1%)
- Profit at Rs 102 crore vs Rs 59 crore (Estimate: Rs 115 crore)
ALSO READ: Deepinder Goyal Steps Down As Eternal Group CEO, Albinder Dhindsa To Succeed
Eternal
Macquarie on Eternal
Maintain Underperform with TP of Rs 200
Blinkit optics improved with a contribution margin uplift
Adjusted EBITDA at breakeven due to accounting shift
After finance costs, Blinkit remains loss-making
Management tempered near-term growth and margin outlook
Cited irrational competitive dynamics
UBS on Eternal
Maintain Buy with TP of Rs 375
Blinkit breaks even; food delivery growth improves
Strong Q3 numbers; guidance broadly constructive
Competitive intensity remains a key watch factor
Jefferies on Eternal
Maintain Buy with TP of Rs 480
Blinkit delivered positive EBITDA near peak competition
Higher AOV, mix improvement and move to 1P aided performance
Past investments are paying off
Management change not expected to impact near-term execution
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