Eternal Ltd Soars 5.5%: Shares of Eternal Ltd, the parent company of Zomato and Blinkit, surged 5.5% on June 5, continuing a bullish streak driven by a string of encouraging developments. This two-day rally has now lifted the stock by nearly 9%, with investor sentiment buoyed by strong analyst outlooks and a shifting consumer trend toward quick commerce.
At 12:28 PM, the stock was trading at ₹259 per share—just below its 52-week high of ₹304.7 and well above the 52-week low of ₹179. The company’s market capitalisation now stands at an impressive ₹2.5 lakh crore.
Brokerage Firms Bet Big on Eternal’s Dual Dominance
Global brokerage Morgan Stanley has reaffirmed its bullish stance on Eternal, praising the company’s dominant position in both the food delivery and quick commerce segments. The firm highlighted Eternal’s efficient cost structure, healthy balance sheet, and minimal risk of equity dilution as key positives. It has maintained a price target of ₹320 for the stock, suggesting a potential upside of around 23% from current levels.
The brokerage has also established a “floor” valuation between ₹200 and ₹220, calling it a “compelling risk-reward profile” for long-term investors.
One of the major factors influencing Morgan Stanley’s optimism is the rapidly growing addressable market in quick commerce. The firm has significantly revised its projections for India’s quick commerce (QC) industry, now estimating it will touch $57 billion by 2030—up from a previous forecast of $42 billion.
As a result, Eternal’s QC gross order value estimates for FY26–FY28 have been upgraded by 9–11%. While the sector continues to grapple with stiff competition, Morgan Stanley believes that losses will peak this quarter and margins will begin improving from FY26 onward. The food delivery arm, Zomato, is also expected to improve margins through better monetisation and increased absorption of fixed costs.
Blinkit Closes the Gap with Zomato in Weekly Users
Adding fuel to the rally is a new CLSA report that highlights a major shift in India’s digital consumption patterns. According to data as of May 26, Blinkit, Eternal’s quick commerce platform, recorded 30.1 million weekly active users (WAUs), nearly matching Zomato’s 30.7 million. In contrast, Swiggy’s total app ecosystem lagged behind both.
This surge underscores a deeper transformation in Indian online shopping behavior, where quick commerce is rapidly becoming a default choice—not just for groceries, but also for snacks, personal care items, and even fashion products in urban areas.
“Blinkit is now within striking distance of Zomato in terms of user engagement, which is remarkable for a platform that started as an experiment in ultra-fast grocery delivery,” the CLSA report noted.
CLSA, citing Sensor Tower data, said Blinkit has widened its lead over closest competitors this year. The gap between Blinkit and its nearest rival expanded from 1.79 million WAUs in January to a record 7.7 million WAUs by late May. This data strongly positions Blinkit as the undisputed leader in the QC space.
Quick Commerce: From Convenience to Habit
Once considered a luxury or convenience, quick commerce is now ingraining itself into daily consumer behavior across major Indian cities. The segment’s explosive growth has been fuelled by faster delivery times, broader product availability, and aggressive expansion by players like Zepto and Swiggy’s Instamart.
For Eternal, this trend couldn’t come at a better time. Blinkit’s scale-up is not only boosting the company’s overall top-line growth but also supporting its transition from a cash-burning startup model to a more sustainable, margin-driven business.
What Lies Ahead for Investors?
With increasing user stickiness, operational efficiency, and expanding market share in both food delivery and quick commerce, Eternal Ltd appears well-positioned for the future. While competition remains intense, especially in QC, analysts believe the worst in terms of losses is behind.
Backed by strong institutional endorsements and compelling industry tailwinds, Eternal’s dual-engine growth model could continue to generate investor interest. As India’s digital consumption story evolves, Eternal is no longer just a foodtech player—it’s shaping the next phase of urban retail convenience.
