HSBC has maintained its buy rating on Eternal (Zomato Group) with a target price of ₹390 per share, citing margin improvement and acceleration in the company’s quick commerce (QC) segment during Q2FY26. The brokerage said that while recovery in the food delivery business remained slow despite higher customer spending, profitability improved due to higher take-rates.
HSBC added that the QC business delivered strong top-line growth in the second quarter, although margins were lower than expected due to elevated marketing and expansion expenses. It noted that Eternal continues to benefit from robust industry tailwinds in the quick commerce segment, supported by rising urban consumption and competitive execution across metros.
The brokerage acknowledged that valuations are no longer inexpensive but justified its positive view based on the company’s execution quality and growth runway in both food delivery and QC. HSBC expects margins to improve further as operational efficiencies and scale benefits kick in through FY26.
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