Nuvama Institutional Equities has maintained its buy rating on Eternal (Zomato Group) and raised its sum-of-the-parts (SoTP) based target price to ₹400 per share from ₹320, following another strong quarter of growth in Q2FY26 led by Blinkit’s transition to an inventory-led model.
Eternal reported consolidated revenue of ₹135.9 billion, a surge of 89.6% quarter-on-quarter and 183.2% year-on-year, sharply ahead of the consensus estimate of ₹86.7 billion. However, EBITDA margin stood at 1.8%, up 20 basis points sequentially but below the Street expectation of 2.7%. Profit after tax came in at ₹650 million, missing the estimated ₹1,075 million due to lower-than-expected reduction in quick commerce losses, largely on account of higher marketing spends.
Management expects Blinkit’s revenue to grow at a compound annual rate of 100% over the next two years, supported by rapid expansion and user additions. Nuvama has tweaked its FY26E and FY27E earnings by –57% and –9%, respectively, factoring in near-term margin pressures despite faster-than-anticipated growth.
The brokerage highlighted that Blinkit’s net order value (NOV) rose 26.9% sequentially and 137% year-on-year to ₹116.8 billion, driven by a 140% jump in monthly transacting customers. Dark store count increased to 1,816 from 1,543 a quarter earlier. Meanwhile, food delivery NOV grew 5.1% QoQ and 13.8% YoY to ₹94.2 billion, while Hyperpure revenue declined 55.4% sequentially as the non-restaurant business tapered off.
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