Shares of Eternal Ltd, the parent company of Zomato and Blinkit, surged over 6% in Wednesday’s session, emerging among the top gainers on the NSE, as investors positioned themselves ahead of the company’s Q3 earnings announcement scheduled later today (January 21).
Strong Q3 earnings expectations lift sentiment
The rally is largely driven by optimism around Eternal’s December-quarter results, with market participants betting on a sharp improvement in both revenue and profitability. Street estimates suggest the company could report strong year-on-year and sequential growth, supported by the continued momentum in Blinkit’s quick-commerce business.
Brokerage and market expectations point to:
- Sharp revenue growth, aided by Blinkit’s shift to an inventory-led model, which allows better pricing control and margin expansion
- Meaningful improvement in net profit, with estimates indicating a near 50–55% YoY rise for the quarter
- Sequential growth in revenues and profits, reflecting better operating leverage across businesses
Blinkit remains the key trigger
Investor confidence has been particularly boosted by Blinkit’s performance, which is expected to show:
- Strong growth in net order value (NOV) on both a QoQ and YoY basis
- Benefits from rapid dark store additions and higher order volumes
- Improving unit economics, a key focus area for investors tracking quick-commerce profitability
The inventory-led model adopted by Blinkit has changed the earnings narrative for Eternal, allowing it to scale faster while improving margins—something the market is clearly rewarding.
Focus on management commentary
Apart from headline numbers, investors are also positioning ahead of:
- Management commentary on quick-commerce profitability timelines
- Updates on competition and margin sustainability
- Outlook on food delivery GMV growth and cost controls
Any positive signals on these fronts could further support the stock.
Stock performance snapshot
During the session, Eternal shares climbed to around Rs 285, up more than 6%, with volumes remaining strong. The move reflects growing confidence that the company’s Q3 results could reinforce its improving earnings trajectory.
Bottom line
Eternal’s sharp rally today appears to be pre-results positioning, driven by expectations of strong Q3 earnings, Blinkit-led growth, and improving profitability metrics. The stock movement suggests investors are anticipating a positive earnings surprise or constructive management guidance later in the day.
