Startup Originals Team
Zomato’s holding company, Eternal Ltd., has burst into India’s corporate big-league after its share price soared to a record ₹311.6, taking its market capitalisation past the coveted ₹3 lakh crore mark. The rally follows first-quarter earnings that revealed a 70% revenue leap-even though net profit tumbled 90%-and upbeat guidance on its quick-commerce arm, Blinkit. Below is a structured look at why the stock is sizzling, how the numbers stack up, and what it means for investors.
Momentum-Driving Highlights:
Eternal’s surge rests on three pillars:
- Record top-line growth (+70% YoY) despite a ₹25 crore net profit-down from ₹253 crore a year ago.
- Blinkit’s Net Order Value (NOV) has overtaken the core food-delivery NOV for the first time, signalling a strategic pivot to quick commerce.
- The market now values Eternal above stalwarts such as Wipro, Tata Motors and Nestlé India.
Share-Price Trajectory:
Eternal shares jumped 15% intraday on 22 July 2025 before closing around ₹299–₹300, levels unseen since listing. Technical analysts flag a MACD crossover and robust volume buildup, hinting at further upside toward ₹350 if momentum holds.
| Date | Closing Price (₹) | Intraday High (₹) | % Change (Day) |
|---|---|---|---|
| 21 Jul 2025 | 274.00 | 274.00 | +7% |
| 22 Jul 2025 | 299.10 | 311.60 | +8.8% |
| 23 Jul 2025 | 300.40 | 303.55 | +0.4% |
Market-Cap Leapfrog: Who Eternal Just Passed
| Company | Market Cap ₹ Cr | Position vs Eternal |
|---|---|---|
| Eternal Ltd. | 300,000 | — |
| Wipro | 272,000 | Below |
| Tata Motors | 253,000 | Below |
| JSW Steel | 252,000 | Below |
| Nestlé India | 238,000 | Below |
| Coal India | 238,000 | Below |
| Bajaj Auto | 236,000 | Below |
| Asian Paints | 227,000 | Below |
All figures rounded to nearest ₹1,000 crore.
Financial Snapshot: Q1 FY26
Revenue vs Profit:
- Revenue from operations: ₹7,167 crore, up 70% YoY.
- Net profit: ₹25 crore, down 90% YoY due to Blinkit’s inventory-led model and higher ad spends.
Segment Breakdown:
| Business Unit | Q1 Revenue ₹ Cr | YoY Growth | Segment Result |
|---|---|---|---|
| Quick Commerce (Blinkit) | 2,400 | +155% | ₹42 crore loss |
| India Food Delivery | 2,261 | +24% | ₹465 crore profit |
| Hyperpure (B2B) | 2,295 | +— | ₹5 crore loss |
| Dining & Events | 207 | +— | ₹48 crore loss |
Cost Pressures:
- Cost of Goods Sold surged 129% to ₹2,557 crore as Blinkit moved to an inventory model.
- Ad & promotion spends climbed 69% to ₹671 crore.
- Delivery expenses jumped 41% to ₹1,869 crore.
Blinkit: The Growth Engine
Blinkit now delivers 16.9 million average monthly transacting customers, up 123% YoY. Its NOV hit ₹2,400 crore, topping food delivery’s ₹2,261 crore, and management targets EBITDA break-even by Q4 FY26.
Why Investors Love Quick Commerce:
- Speed Differentiator – 10–20-minute deliveries capture urban demand.
- Higher Frequency – Daily-needs basket boosts repeat orders and data stickiness.
- Cross-Selling – Combines grocery, pharmacy and impulse-buy categories6.
Valuation and Analyst View:
- Eternal trades at a P/E above 960× trailing earnings, reflecting future-growth bets.
- Jefferies raised its target to ₹400 citing Blinkit momentum.
- Macquarie remains cautious with a ₹150 target, flagging stiff competition and profitability risks.
Info Edge Windfall:
Info Edge’s 13–15% stake in Eternal is worth between ₹33,200 crore and ₹40,000 crore, accounting for over one-third of its own market cap. This unrealised gain-up 15–61× its original ₹147 crore investment-offers a buffer against volatility in Naukri and 99acres.
Risks to Monitor:
- Competitive Heat – Swiggy, Zepto and Amazon Fresh are intensifying quick-commerce battles, pressuring margins.
- Cost Inflation – Rising wage, fuel and warehouse costs could offset revenue gains.
- Regulatory Scrutiny – FSSAI and consumer-protection norms may tighten fulfilment timelines and product sourcing.
Strategic Outlook:
CEO Deepinder Goyal emphasises relentless innovation to stay ahead of new entrants. Management plans to:
- Add 300+ dark stores over the next year to expand Blinkit’s reach.
- Integrate cross-promotions between Zomato, Blinkit and Hyperpure for ecosystem synergies.
- Focus on advertising efficiency to stabilise EBITDA margins above 5% in core food delivery.
Conclusion:
Eternal Ltd.’s leap to a ₹3 lakh crore valuation caps a dramatic turnaround from loss-making startup to Nifty-50 heavyweight. While headline profit is thin, investors are betting that Blinkit’s quick-commerce dominance and cross-platform scale will justify today’s lofty multiple. The path ahead hinges on converting blistering top-line growth into sustainable, broad-based profitability-before the competition catches up.
