Eternal Q3FY26 Result: Target Price Updated
Deepinder Goyal Resigns, Profit Jumped 73%, revenue 201%
When it comes to Eternal, we have two sets of investors - one who believes in the company and the space, while the other believes the company won’t be able to justify its steep valuations.
I am on the former side.
You can check all the results in one place now on the homepage. Also, subscribe for weekly updates.
Eternal Q3FY26 Result
Eternal, which runs the food delivery platform Zomato and quick commerce business Blinkit, reported a strong set of results on Wednesday. Consolidated net profit rose 73% year on year to Rs 102 crore, while revenue from operations jumped 201% to Rs 16,315 crore.
In the food delivery segment, recovery in growth continued. Net Order Value (NOV) grew 16.6% year on year and 4.5% quarter on quarter in Q3 FY26, improving from 13.8% growth in the previous quarter. This marked the second straight quarter of acceleration after NOV growth bottomed out at 13.1% in Q1 FY26. Gross Order Value (GOV) grew 21.3% year on year and 5.2% sequentially. Profitability also improved, with adjusted EBITDA margin reaching an all-time high of 5.4% of NOV. Adjusted EBITDA for the quarter stood at ₹531 crore, up 26% year on year and 6% quarter on quarter.
Quick commerce continued to see strong momentum. NOV grew 121% year on year and 14% quarter on quarter despite GST changes and seasonal factors, with like-for-like growth exceeding 130%. The company added 211 net new stores during the quarter, taking the total store count to 2,027. While this was slightly below the guidance of 2,100 stores, profitability improved sharply. Adjusted EBITDA margin turned positive for the first time on a quarterly basis, with a profit of ₹4 crore, compared to a loss of ₹156 crore in the previous quarter.
The going-out segment reported NOV growth of 20% year on year. However, adjusted EBITDA margin declined to minus 4.7%, leading to a loss of ₹121 crore for the quarter, higher than the ₹63 crore loss in Q2 FY26, due to continued investments in building the category.
Hyperpure, the restaurant supply business, delivered steady growth with NOV up 33% year on year and 7% quarter on quarter. Importantly, adjusted EBITDA margin turned positive for the first time, resulting in a profit of ₹1 crore, compared with a loss of ₹5 crore in the previous quarter.
A Letter to Shareholders - Deepinder Goyal Resigns
Dear Shareholders,
Today, I am going to step away from the Group CEO role, and subject to shareholders’ approval, will remain on the board of directors as Vice Chairman.
Albinder Dhindsa (Albi) will be Eternal’s new Group CEO.
Why this change
Of late, I have found myself drawn to a set of new ideas that involve significantly higher-risk exploration and experimentation. These are the kinds of ideas that are better pursued outside a public company like Eternal. If these ideas belonged inside Eternal’s strategic scope, I would have pursued them within the company. They do not. Eternal deserves to remain focused and disciplined, while exploring new areas of growth that are relevant to its current line of business.
While I believe I personally have the bandwidth to continue what I am doing at Eternal, and also explore new ideas outside of it, the expectations, legal and otherwise, of a public company CEO in India demand singular focus.
This transition allows Eternal to remain sharply focused, while giving me the space to explore ideas that do not fit Eternal’s risk profile.
What doesn’t change
I have spent eighteen years, almost half my life, building this company. I will continue doing that.
Albi, Akshant, and I will continue to work closely together, as we always have. Our partnership, shared context, and trust remain unchanged. All our business CEOs will continue operating with the autonomy they have always had.
My involvement in long-term strategy, culture, leadership development, and ethics and governance continues. This is where I have increasingly focused lately anyway.
What changes
The centre of gravity for operating decisions moves to Albi. As Group CEO, he will own day-to-day execution, operating priorities, and business decisions.
Blinkit’s journey from acquisition to breakeven happened under his leadership. He built the team, the culture, the supply chain, the operating rhythm. He has the DNA of a battle-hardened founder, and his ability to execute far exceeds mine. He is more than capable of leading Eternal as Group CEO.
Blinkit remains our largest growth opportunity and will remain as Albi’s top priority. Our decentralized structure, where each business has a CEO with full ownership, continues unchanged and will help Albi execute this well.
Zomato Share Target Price
Zomato's share opened 7% higher at around 300 per share. However, the share price corrected and was trading at Rs 285 per share.
CLSA maintained its high-conviction outperform rating on the stock and raised its price target to Rs 506 from Rs 483, implying an 80% upside from current levels. The brokerage highlighted that Blinkit’s contribution per order came in at Rs 30, ahead of its Rs 28 estimate, while monthly transacting users exceeded expectations, supported by disciplined pricing and a wider product assortment.
Jefferies noted that Blinkit reported positive EBITDA at a time when competitive intensity appears to be at its peak, underscoring the business’s structural strength. The brokerage reiterated its buy rating with a Rs 350 price target, citing multiple positive surprises during the quarter.
About me - In the last few years, I have noticed that many investors struggle with basic investment concepts. To address this, I have started a personalized newsletter offering easy-to-understand, actionable insights to help investors make better decisions. I have written over 5000+ financial blogs and want to share my knowledge and investing journey with you so you can become a confident investor. Join my journey. SUBSCRIBE NOW