Eternal share price surges 7% despite a massive 90% drop in Q1 profit. What's behind the rally? Explained

Eternal share price: Despite a massive 90% year-on-year decline in the first quarter net profit, Eternal (earlier Zomato) shares staged a smart 7% surge in trade on Monday, July 21. The company's operating performance also remained weak as both the EBITDA (earnings before interest, tax, depreciation and amortisation) and EBITDA margin took a massive hit. Yet, investors cheered the strong performance by its quick commerce business – Blinkit – during the quarter, driving Eternal shares higher.

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