Is Eternal Shares Headed Towards Rs 200?

Over the past couple of weeks, the benchmark indices have remained relatively stagnant, but the Eternal share price has been witnessing a downside.

In just a fortnight, the stock is down from Rs 303.85 on 10 February 2026 to Rs 250.90, nearly 17%.

Eternal Stock Price Fall in the Last Two Weeks

Source: Equitymaster

Eternal is one of India's largest online food delivery and quick-commerce platforms.

In this editorial we look at the prospects for the stock of Eternal.

What are the Positives Working in Favour of the Eternal Stock?

Here are some key positives that work in favour of investing in Eternal ltd.

1. Strategic Multi-Business Portfolio

   Eternal is no longer just a food delivery company - its corporate structure now houses multiple growth verticals:

   • Zomato (food delivery & restaurant discovery)

   • Blinkit (quick commerce)

   • Hyperpure (B2B supplies)

   • District (events & going-out business)

   This diversification reduces dependency on a single business and helps capture multiple high-growth consumption markets in India.

2. Quick Commerce (Blinkit) as a Major Growth Engine

   Blinkit has rapidly grown and even overtaken the traditional food delivery segment in terms of Net Order Value, becoming a key revenue driver for the group.

   This shift positions Eternal to benefit from the fast-emerging "10-minute delivery" and grocery quick commerce opportunity in India.

3. Rebranding Symbolises Broader Vision

   Changing the corporate name from Zomato to Eternal has signalled a strategic shift beyond food delivery, which has helped in attracting investors who want exposure to a broader digital commerce story rather than a single-segment player.

4. Turnaround to Profitability Trends

   After years of losses typical for gig-economy platforms, Eternal has reported quarters of positive net profit growth, reflecting improving unit economics and cost discipline as its diversification takes shape. Profitability, especially from the food delivery arm with stable margins, adds confidence.

5. Strong Brand Equity & Scale

   Despite rebranding the corporate entity, the Zomato brand and platform remain strong and widely used in India, with millions of active users - providing a built-in customer base and cross-sell opportunities into other verticals (like Blinkit and District).

6. Leadership Focus & Industry Position

   Eternal's leadership transition (with the head of Blinkit becoming CEO) underlines the company's focus on scaling the fast-commerce business while maintaining seasoned strategic oversight.

   This blend can help balance growth and execution discipline.

7. Low Leverage & Cash Position

   The company maintains a zero debt to equity ratio and positive cash flow, which can provide a financial cushion and flexibility to invest aggressively in growth without undue funding risk.

What Are the Factors That Could Weigh Against the Stock?

1. Heightened Competitive Intensity

   The "Quick Commerce" wars have entered a capital-intensive phase:

   • The Big Three Rivalry: Swiggy and Zepto are aggressively discounting to gain market share. This "burn-to-win" strategy forces Blinkit to keep marketing spends high, potentially delaying its long-term EBITDA margin targets.

   • Entry of Giants: Deep-pocketed players like Flipkart Minutes and Reliance (JioMart) are scaling their 10-30 minute delivery services, threatening dominance in Tier-1 cities.

2. Regulatory & Labour Headwinds

   There is increasing pressure from Indian regulators and labour unions to provide social security and better insurance for delivery partners.

   Any mandatory levy on turnover for a "Gig Worker Welfare Fund" would directly squeeze the company's margins.

3. Leadership Transition Risk

   In early 2026, founder Deepinder Goyal stepped down as CEO to become Vice Chairman, with Albinder Dhindsa (Blinkit founder) taking over as Group CEO.

   While Dhindsa is highly respected, a change at the top during a period of hyper-expansion creates "key person" risk and potential shifts in corporate strategy that the market may take time to digest.

A Look at Some Fundamental Parameters of Eternal

Source: Equitymaster

The stock is trading at a price to earnings multiple of 1,048 times, while the price to book is 7.7 times. Eternal is part of the Nifty50 index and the Nifty50 PE is currently around 22.3 times.

So, if we compare the same, we see the PE of 1,048 times appears very expensive.

Should You Consider the Stock of Eternal?

You should weigh the long-term growth story against real challenges. Its diversified model anchored by Zomato's food delivery and Blinkit's quick commerce gives it strong scale and revenue growth, but the stock has seen significant volatility, and trades at an extremely high PE multiple.

Margin pressures from competition and evolving business mix also add uncertainty, even as some investors remain positive on growth prospects.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...