Shares of Eternal Ltd., the parent company of food delivery platform Zomato and quick commerce arm Blinkit, surged nearly 8% from the day’s low on Friday, May 2, after the company reported March quarter results largely in line with street expectations.
The stock opened weak but recovered sharply as investors digested management’s commentary on growth challenges and competitive intensity. Eternal reported 16% YoY growth in food delivery Gross Order Value (GOV) for Q4FY25, a continued slowdown from previous quarters (28.5% YoY in Q4FY24).
The company cited sluggish demand, shortage of delivery partners, and the delisting of around 19,000 restaurants for impacting volume growth.
Meanwhile, Blinkit posted a robust 134% YoY growth in GOV but widened its EBITDA loss to ₹178 crore. Eternal said it will continue expanding aggressively, even at the cost of short-term profitability, to defend market share amid rising competition from players like Zepto and Swiggy Instamart.
Brokerages reacted cautiously. Jefferies maintained a “hold” rating and cut its price target to ₹250, citing bearish commentary on Blinkit. Nomura, however, retained its “buy” call, trimming the target to ₹280, stating the company is structurally well-positioned despite short-term headwinds.
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