Eternal Shares Hit As Blinkit Breaks Zomato Value: Buy, Sell, or Hold?

Shares of Eternal Limited, formerly Zomato, jumped to their all-time high this week-something that was not expected as the company announced a dismal 90% year-on-year drop in net profit for Q1 FY26. The unexpected rally was from its fast-growing quick-commerce arm, Blinkit, which has now officially outscored Zomato in terms of revenues from its core food delivery business. Eternal Shares Hit As Blinkit Breaks Zomato Value: Buy, Sell, or Hold?

Eternal Shares Hit As Blinkit Breaks Zomato:

With ₹2,400 crore of revenues, Blinkit has outstripped Zomato’s ₹2,261 crore ones, and can boast on a 127% YoY increase in net order value, as it hints at consumer behaviour shifts. Overall revenues for Eternal surged 70% YoY to ₹7,167 crore, while profits fell to a net figure of ₹25 crore from ₹253 crore last year.

Blinkit’s defining moment

Even though profits are falling, investor sentiment has been positive because of Blinkit’s aggressive expansion and the positive management commentary. The addition of 243 new dark stores took the number total to 1,544 and says that quick commerce now forms nearly half the $10 billion annualized net order value for Eternal. Thus, the moment is transformative for the company’s evolution from food delivery to becoming a dominant player in quick commerce.

Investors’ Dilemma – Buy, Sell, or Hold?

Brokerages are divided. Jefferies, CLSA, and Bernstein quoting Blinkit’s momentum and margin recovery have upgraded their ratings and target prices. On the other hand, Macquarie take a cautious approach and warn about prolonged losses and cutthroat competition.

What will investors do now? Buy, if he believes in Blinkit’s long-term potential, and Eternal’s ability to scale profitably. Hold, that’s just a smart way to play short-term swings for those currently invested in Eternal. Sell, if this sounds like one, to get out from under the anxiety of seeing a huge profit decline.

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Eternal is now on its way to building itself a quick-commerce giant. Blinkit’s breakout performance is probably just the start-but investors should proceed with caution and closely monitor the profitability curve.