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Eternal share price fell almost 2% during Friday's trading session after the food delivery and quick commerce company, which operates the Zomato and Blinkit brands, announced a consolidated net profit of ₹65 crore for the quarter ending in September. The quick commerce segment played a crucial role in driving its revenue growth.

The firm, which changed its name to Eternal in March, reported a net profit of ₹176 crore for the June-September quarter of the previous fiscal year. Zomato's food delivery net order value (NOV) grew by 14 percent year-over-year, showing a slight improvement from the 13 percent YoY NOV growth recorded in the prior quarter.

For the quarter in review, Eternal's revenue from operations reached ₹13,590 crore, up from ₹4,799 crore in the same period last year.

The company incurred total expenses of ₹13,813 crore during the quarter, compared to ₹4,783 crore a year earlier.

Eternal's division of reporting includes its Indian food ordering operations, quick commerce, Hyperpure supplies (B2B sector), dining out, and other residual segments.

The net order value (NOV) growth for the quick commerce sector surged to 137 percent year-on-year, hitting a high of ₹11,679 crore, compared to ₹4,928 crore during the equivalent June-September quarter of the prior year. The adjusted revenue for the quick commerce segment skyrocketed by 756 percent to ₹9,891 crore, up from ₹1,156 crore a year ago, as per the data.

In a communication to shareholders, Eternal indicated that it anticipates a gradual increase in the growth rate in the short term for Zomato's food delivery net order value (NOV), citing several challenges such as soft discretionary spending, the effects of quick commerce expansion, and increasingly unpredictable weather patterns.

Consistent with this outlook, the NOV growth rate (YoY) experienced an increase in Q2FY26 after a prolonged decline over the previous five quarters. Nevertheless, the rebound in growth has been slower than anticipated, and we only foresee a gradual increase in the growth rate in the near future.

Motilal Oswal Financial Services has indicated that their Eternal share price target is ₹410, which suggests a potential increase of 17% from the current price. The decline in fixed deposits has persisted this quarter, and a gradual recovery is anticipated in the near future. The brokerage maintains its BUY rating for the stock, backed by Eternal’s dominance in both Q-commerce and food delivery, alongside the long-term prospects of Blinkit as a significant opportunity in the retail, grocery, and e-commerce sectors. However, significant investments in both Q-commerce and the going-out sector are expected to impact profitability in the short term.

“Quick commerce losses reduction was lower than expected, largely due to higher marketing spends. Management expects growth at a 100% CAGR in Blinkit for next two year. We are tweaking FY26E/27E by -57%/-9% due to lower margin expectations in the near team although faster-than-expected growth. Retain ‘BUY’ with a revised SotP-based target price of ₹400 (from ₹320) as we roll forward to Sep-27E,” said brokerage, Nuvama Institutional Equities.

Eternal share price today opened at ₹340.30 apiece on the BSE, the stock touched an intraday high of ₹347.75 per share, and an intraday low of ₹333.75 per share.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Eternal share price amidst the quarterly announcement result, stock prices are under tremendous volatility, unlike Thursday after a positive start there was a sharp profit booking from the levels of 370, today post gap down and testing levels around 335 have attempted a bounce back towards 345 (at the time of writing).

“We may continue to see such volatility, where 320 - 310 would be buying zone whereas around 360 - 370 a selling zone,” said Bhosale.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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