Eternal Ltd Stock Up by More Than 10% Today, After June Quarter Result

Mumbai, July 22, 2025: Shares of Eternal Ltd (NSE: ETERNAL; BSE: 543320) (Zomato Ltd) gained 10.36% to ₹299.85 on Tuesday as of 10:00 AM. This sharp increase followed the announcement of the company’s Q1 FY26 financial results and the approval of several key corporate actions.

At 1:42 p.m. 22nd July, the stock was up by 11.87% at Rs 303.95.

Blinkit Foods Announcement

In a significant development for its quick commerce segment, Eternal Ltd’s board of directors, during their meeting on 21 July 2025, approved the incorporation of Blinkit Foods Ltd. This new entity will have a paid-up capital of ₹10 lakh and will focus on preparing, sourcing, selling and delivering food. This move comes as the quick commerce segment, primarily driven by Blinkit, demonstrated exceptional growth in Q1 FY26, with its revenue of ₹2,400 crore notably surpassing that of the traditional food delivery business for the first time. The incorporation of a dedicated entity for Blinkit Foods is expected to streamline operations and potentially facilitate further expansion and strategic initiatives within the rapidly growing quick commerce space.

Key Market Metrics

Q1FY26 Highlights (Consolidated)

Eternal Ltd reported robust financial performance for the first quarter of the financial year 2025-26:

• Revenue from operations witnessed a significant rise to ₹7,167 crore, marking a 22.8% quarter-on-quarter (QoQ) increase and a substantial 70.4% year-on-year (YoY) growth.
• The company reported a net profit of ₹25 crore for the quarter. This compares to ₹39 crore in Q4 FY25 and ₹253 crore in Q1 FY25.
• Quick commerce revenue surged to ₹2,400 crore, notably surpassing the revenue generated from food delivery for the quarter.

Board Meeting Outcomes (July 21, 2025)

During its board meeting on 21 July 2025, Eternal Ltd’s board of directors approved several key resolutions:

• The Q1 FY26 unaudited financial results were approved.
• The 15th Annual General Meeting (AGM) was scheduled for 19 August 2025.
• The incorporation of Blinkit Foods Ltd was approved, with a paid-up capital of ₹10 lakh.
• Deloitte Haskins & Sells were re-appointed as the statutory auditors for a period of five years.
• Chandrasekaran Associates were appointed as the secretarial auditors for the financial years 2025-26 to 2029-30.
• The company also disclosed that it had received Goods and Services Tax (GST) demand orders totalling ₹441 crore, which are currently under litigation. The statutory auditor noted this without qualification in their limited review report.

What Does The Announcement Mean For The Investors?

For investors, Eternal Ltd’s Q1FY26 results and the Blinkit Foods spin-off signal strong operational momentum and a strategic shift toward the high-growth quick commerce segment. The 70% YoY revenue growth and Blinkit’s ₹2,400 crore revenue crossing food delivery show shifting consumer behaviour and Eternal’s agility. Incorporating Blinkit Foods as a separate entity may unlock value in future fundraising or listing scenarios. While the ₹441 crore GST demand presents a risk, the auditor’s unqualified stance offers some reassurance. Overall, the announcements position Eternal as a growth-focused tech-driven consumer platform with multi-engine revenue potential.

Road Ahead For Eternal Ltd

Eternal Ltd appears well-positioned for sustained growth, driven by its strategic focus on the booming quick commerce segment. The incorporation of Blinkit Foods Ltd could pave the way for future fundraising, strategic partnerships, or even a potential listing, unlocking further shareholder value. The company’s strong revenue momentum, brand strength, and tech infrastructure give it an edge in both food delivery and hyperlocal retail. However, investors will closely watch how Eternal navigates regulatory challenges like the ₹441 crore GST demand and manages profitability amid expansion. Continued execution and margin improvement will be key to maintaining market confidence.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/42d6adfe-955f-4de8-8dfb-bdcb267194d3.pdf

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