Eternal Ltd., formerly known as Zomato, has captured investor attention with a sharp surge in its share price. On July 21, 2025, Eternal’s stock was trading at approximately ₹275.75, marking a 7.5% intraday gain and continuing a remarkable upward trend that began in early April
What’s behind the move?
The stock has rallied ~34% since its April lows to around ₹262 and was trading above key moving averages before today’s jump
The sharp run was further fueled by a strong Q1 (FY26) performance: revenues rose ~70% year-on-year to ₹7,167 crore, although net profit plunged 90% to ₹25 crore due to heavy investments in Blinkit and other growth initiatives
Investor Considerations
Growth vs Profitability: Strong topline growth is encouraging, but profits are currently under pressure due to aggressive investment in quick-commerce.
Valuation: Trading at a high forward P/E (~470x) and P/B (~8x) multiples
—appropriate for high-growth, but vulnerable if growth moderates.
Technical Outlook: Momentum remains positive, but after recent gains, a pause or minor correction could be around the corner
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Q1 FY26 Results – Mixed Signals
Revenue: ₹7,167 crore (YoY growth of 70%)
Net Profit: ₹25 crore (down 90% YoY)
Primary Growth Driver: Blinkit and food delivery verticals
DIGI MERCH STORE PRINT ON DEMAND
Conclusion
Eternal Ltd.’s stock rally in July 2025 highlights the market’s confidence in its long-term potential despite short-term profitability pressures. With robust revenue growth, increasing brand equity, and leadership in quick-commerce, Eternal is poised for a strong presence in India’s new-age economy. However, investors should weigh valuation risks and monitor quarterly performance closely
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