Online Delivery Firm Eternal Slides 3% Ahead of Results As Spotlight Falls OnBlinkit

Mumbai, April 28:Shares of online delivery platform Eternal slid on Tuesday, falling as much as four percent as the spotlight fell on the performance of quick commerce arm Blinkit just ahead of the online delivery platform’s March quarter earnings.

Investors turned nervy even as brokerages said revenue could jump over 200% year-on-year and net profit may see a multi-fold rise as earnings get a boost from strong growth in Blinkit and steady traction in the core food delivery business.

The stock is nervous ahead of results. Source: NSE

The stock was down over three percent at Rs 247 at the time of writing.

Profit-Taking Ahead of Results

The drop in the stock could be down to profit booking after a recent recovery as investors typically turn cautious ahead of key results, particularly in stocks where expectations are already elevated.

Despite the near-term decline, analyst sentiment remains constructive, with several brokerages maintaining positive outlooks on the company’s long-term growth trajectory. Target prices from major firms continue to imply upside, underpinned by confidence in Blinkit’s scale-up and improving operating leverage.

Blinkit in Sharp Focus

A key area of focus for investors will be Blinkit, which has emerged as the primary growth engine for Eternal. Brokerages expect Blinkit’s gross order value and net order value to grow sharply, supported by aggressive store expansion and rising demand for quick commerce.

However, profitability remains a key question. While losses in the segment are expected to narrow significantly, analysts are divided on the pace at which Blinkit can turn sustainably profitable amid intensifying competition in the quick commerce space.

Strong Growth, but Competition Looms

The broader earnings picture is expected to remain robust, with steady growth in the food delivery segment and improving margins. Analysts also anticipate better operating leverage, aided by higher platform fees and efficiency gains.

That said, rising competitive intensity—particularly from rivals in the quick commerce space—continues to be a key overhang. Companies are ramping up expansion, offering discounts and investing heavily to capture market share, which could keep margins under pressure in the near term.

Outlook

Overall, Eternal’s share price decline highlights the market’s cautious stance ahead of a high-stakes earnings announcement. While the company is expected to deliver strong headline growth, the Street will closely track commentary around Blinkit’s profitability, margin trajectory and competitive positioning.

In the near term, the stock is likely to remain volatile, with the upcoming results acting as a key trigger for further direction.

Source:

• https://www.nseindia.com/get-quote/equity/ETERNAL/ETERNAL-LIMITED