Eternal Ltd (Zomato) reported a solid set of numbers for the first quarter of FY26, with revenue soaring 70.4% YoY to ₹7,167 crore, significantly beating consensus estimates of ₹6,620 crore. However, despite the top-line beat, EBITDA margin came in at 1.6%, up 40 basis points sequentially but short of the Street’s estimate of 2.7%. Profit after tax stood at ₹25 crore, missing consensus expectations of ₹105 crore.
Nuvama noted that the biggest positive surprise came from the Quick Commerce (Blinkit) segment, which reported a 127% YoY surge in gross order value (GOV). The brokerage believes Blinkit’s rapid growth is sustainable, driven by inventory-led efficiencies, operating leverage, and the maturation of recently added dark stores.
While food delivery saw slower momentum, the company has successfully stemmed the deceleration, and Nuvama remains optimistic about margin expansion going forward.
“We are revising our FY26/FY27 earnings estimates upwards by 1.4% and 8.4%, respectively, as Blinkit gains scale and food delivery stabilises,” Nuvama wrote, maintaining a ‘Buy’ rating with a revised SoTP-based target price of ₹320, up from ₹290 earlier.
