Multiple global brokerages have expressed bullish outlooks on Eternal Ltd. (formerly Zomato Ltd.) following the company's June quarter (Q1 FY26) results, with price targets suggesting potential upside of up to 75% from prevailing market levels.

Eternal, which operates food delivery platform Zomato and quick-commerce arm Blinkit, reported Q1 results that showed its cash balance rising for a second consecutive quarter, while Blinkit's contribution margins continued to improve. The company officially changed its name from Zomato Ltd. to Eternal Ltd. earlier in 2025 to reflect its expanded portfolio of businesses. For brokerages tracking the stock, cash generation and Blinkit's margin trajectory are central metrics because quick commerce typically requires heavy spending on dark stores, delivery networks, and customer acquisition while companies scale.

CLSA Sees the Highest Upside

CLSA maintained the most bullish stance among the brokerages covering the stock, projecting upside of approximately 75% from current levels. The brokerage highlighted the long-term growth runway across Eternal's core businesses.

JPMorgan — 'Overweight' on Eternal

JPMorgan maintained its "Overweight" rating on Eternal with a target price of ₹390, implying an upside of about 35%. The firm pointed to sustained momentum in the company's core operations and improving unit economics.

Jefferies Reiterates 'Buy' Rating

Jefferies retained its "Buy" rating with a price target of ₹415, suggesting an upside of around 43%. The brokerage emphasized the strength of Eternal's ecosystem spanning food delivery, quick commerce, and other emerging verticals.

Nomura Bets on Improved Blinkit Profitability

Nomura turned positive on Eternal's quick-commerce subsidiary Blinkit, citing expectations of improved profitability in the coming quarters. Blinkit, which Eternal acquired in 2022, has been a key growth driver despite intensifying competition in India's quick-commerce sector from players such as Swiggy Instamart, Zepto, and others entering the space. The segment has become a major focus for Indian consumer internet companies as shoppers increasingly use rapid-delivery platforms for groceries and daily essentials.

HSBC Confident on FY27 Estimates

HSBC expressed confidence in Eternal's financial trajectory for fiscal year 2027, noting that the company's diversified business model positions it well to navigate a competitive landscape.

Street Remains Bullish on Eternal

The overall analyst consensus remains constructive on Eternal, with the majority of brokerage coverage carrying positive recommendations. Analysts acknowledged competitive pressures in both food delivery and quick commerce but cited Eternal's market position, improving profitability, and cash generation as key supporting factors for their bullish outlook. Investors tracking upcoming quarters are likely to focus on whether Blinkit's margin improvement continues alongside growth, and whether Eternal can maintain cash generation while competing across both food delivery and quick commerce.

Source: CNBC-TV18 Markets