Street View: Profitability outlook to improve at India's Eternal despite soft quick-commerce growth

Eternal

29/04/2026 07:34

** Shares of Indian online delivery firm Eternal ETEA.NS up 1.82% at 257.32 rupees after company's fourth-quarter profit beat estimates

** Analysts say growth in quick-commerce arm Blinkit was slightly softer, but profitability trends improved across segments

STRONGER PROFITABILITY OFFSETTING NEAR-TERM GROWTH MODERATION

** Morgan Stanley ("overweight"; TP:347 rupees) says food-delivery performance was largely in line with expectations, while growth in the quick-commerce business moderated sequentially even as margins improved

** JPMorgan ("overweight"; TP:390 rupees) says Blinkit growth moderated due to slower store additions but margins improved on operating leverage as the network matures

** Citi ("buy"; TP:360 rupees) says in-line earnings performance across food delivery and quick commerce supports expectations of sustained growth in both businesses over the medium term

** Nomura ("buy"; TP:340 rupees) says growth in the quick-commerce business slowed sequentially to about 8% q/q from 14%–30% earlier; expects co can still meet its $1 billion adjusted EBITDA target by fiscal 2029

** HSBC ("buy"; TP:300 rupees) says medium-term guidance remains stronger than expectations even though fourth-quarter growth in quick commerce came in slightly below estimates

 (Reporting by Surbhi Misra in Bengaluru)

 ((Surbhi.Misra@thomsonreuters.com |  X: https://twitter.com/SurbhiMisra_  |;))