Shares of Eternal Ltd are in focus after the company the company delivered a strong set of fourth quarter results on Tuesday. The company posted an over fourfold jump in consolidated net profit in the fourth quarter of fiscal 2025-26. The bottomline came in at Rs 174 crore, compared to Rs 39 crore. Eternal also reported a steady operational performance in fourth quarter, with strong growth in quick commerce and food delivery businesses, alongside improving profitability metrics across segments.
Eternal shares are trading volatile, after reaching a high of 4.04% at open. They're currently trading 1.98% higher at around Rs 258 apiece.
Eternal Q4 Highlights (Consolidated, YoY)
- Revenue up 196.5% to Rs 17,292 crore versus Rs 5,833 crore (Estimate: Rs 18,099 crore)
- Ebitda up 575% to Rs 486 crore versus Rs 72 crore (Estimate: Rs 431 crore)
- Margin at 2.8% versus 1.2% (Estimate: 2.4%)
- Net profit up 346% to Rs 174 crore versus Rs 39 crore (Estimate: Rs 126 crore)
Brokerages have maintained a constructive stance on Eternal, with the exception of one Underperform rating from Macquarie. Citi maintained a Buy rating, but trimmed its target to Rs 360, whereas Morgan Stanley is more upbeat, with an Overweight rating and a hike in the target price to Rs 347. Investec also stays positive with a Buy rating, and a Rs 375 target. UBS echoes the sentiment with another Buy call, and a Rs 310 target price.
Only Macquarie remains cautious with an Underperform rating and a Rs 200 target, warning of slowing expansion, and elevated competitive intensity.
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