What Is Driving Eternal’s Rally? SEBI Analyst Explains

The analyst believes strong margins, zero debt, and upbeat sentiment may drive the stock further to new highs.

Eternal’s stock hit a record high on Thursday, after gaining more than 20% over the past month. Comparatively, the Nifty50 index shed around 2% during the same period.

SEBI-registered analyst Palak Jain takes a deeper look into Eternal’s performance.

Eternal’s surge this year has been supported by robust fundamentals and strong market sentiment, Jain said.

The company that operates Zomato and Blinkit reported a 30% year-on-year rise in sales, carries zero debt, maintains healthy cash reserves, and enjoys solid margins. Its leadership position in e-retail, combined with positive sentiment and upbeat quarterly results, has further fuelled the rally, she added.

The standout growth driver has been its quick commerce arm, Blinkit. In Q1FY26, Eternal’s revenue surged 70% to over ₹7,000 crore, driven by rapid expansion in Blinkit and its B2C business.

For the first time, Blinkit’s net and gross order values overtook the food delivery segment. Revenue from the quick commerce company jumped 155%, store count crossed 1,500, and monthly active customers reached record highs.

From a technical perspective, the stock has key support at ₹300, with resistance at ₹321 and then at ₹330, the analyst said.

If momentum continues, growth sustains, and the margins trend is positive, the stock could soon test the higher resistance levels, she concluded.

The stock closed 1.7% higher on Thursday at ₹317.70, and has gained nearly 15% year-to-date.

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