Brokerages expressed optimism on Eternal’s (Zomato) Q3 FY26 earnings due to the company’s robust rapid commerce performance and rising profitability metrics. Growing trust in execution, especially at Blinkit, is reflected in analysts’ bullish targets.
The brokerages are expressing optimism about the Q3 FY26 results of Eternal Ltd. (Zomato) due to the company’s robust rapid commerce performance and improved profitability indicators. Eternal’s shares increased by almost 5% ahead of the quarterly results, closing at Rs 282.8 on Wednesday.
Growing trust in performance, especially at Blinkit, is reflected in the positive brokerage feedback on Eternal’s fiscal third quarter results. The top leadership change involving founder Deepinder Goyal, however, was noted by experts as something to keep an eye on.
What fueled Zomato’s (Eternal) impressive Q3 results?
Zomato and Blinkit’s parent company, Eternal, reported a threefold increase in revenue to Rs 16,315 crore and a 73% increase in consolidated net profit to Rs 102 crore for Q3 FY26. Fast trade was the driving force for the expansion. EBITDA was Rs 368 crore, and margins increased to 2.3%. A significant milestone was reached during the quarter when Blinkit and Hyperpure turned adjusted EBITDA profitable.
Brokerages view the Blinkit inflection as the primary catalyst for the Zomato stock call.
With a target price of Rs 503 per share, CLSA reaffirmed its “high-conviction outperform” call on Eternal stock, suggesting an increase of around 78%. Blinkit’s contribution per order exceeded projections and net order value (NOV) increased by 121 percent year over year, according to CLSA. The brokerage increased its FY26–28 projections by 5–15% in addition to highlighting higher-than-expected monthly transacting users, which it attributed to stable pricing and improved client quality.
Given that Blinkit produced positive EBITDA at a time when competitive intensity seems to be approaching its peak, Jefferies maintained a “buy” rating with a target of Rs 480. Regarding management changes, Jefferies stated that both founder Deepinder Goyal and Blinkit CEO Albinder Dhindsa’s appointment as MD and CEO did not improve the company’s short-term prospects.
HSBC maintained its “buy” recommendation with a target of Rs 350, pointing out “multiple positive surprises” in the quarter, such as the rapid EBITDA break-even for commerce and the acceleration of food delivery growth. Additionally, HSBC said that seasonality and GST adjustments caused the Q2 pause in rapid commerce growth, allowing for an increase in FY27 NOV projections.
Nomura set a target price of Rs 380 and reaffirmed its “buy” rating. Nomura warned that rapid commerce development was slightly behind expectations despite the unexpected break-even and that the organizational shift merits careful observation, even though it stated that food delivery performance was generally in line and growth is picking up. Additionally, it highlighted the possibility of sustained pressure on rapid commerce profitability.
Focus on the management transition
Along with the earnings, Eternal stated that Albinder Dhindsa will take over as MD and CEO, replacing founder Deepinder Goyal, who will resign as MD and CEO and be recommended as Vice Chairman and Director, subject to shareholder approval. Goyal stated that Dhindsa, who guided Blinkit from purchase to breakeven, will take over day-to-day operations while he stays involved at the board level.
