The share price of Eternal Limited has captured strong investor attention after a sharp rally backed by heavy trading volumes, solid quarterly earnings, and key corporate developments. The new-age technology stock jumped nearly 7% in a single trading session and has delivered steady gains over the past month, prompting market participants to reassess their exposure to the company.
This article breaks down the reasons behind the rally, recent business updates, Q3 FY26 financial performance, and what brokerages are advising investors going forward.
Eternal Share Price Movement: What Triggered the Rally?
Eternal shares surged as much as 6.7% during Tuesday’s session to touch ₹308.05 on the exchanges. The stock opened higher at ₹291 compared with its previous close of ₹288.85, indicating positive sentiment right from the opening bell.
Trading volumes were unusually high. On the National Stock Exchange, nearly 9.91 crore shares were traded by mid-afternoon, while the Bombay Stock Exchange recorded around 48 lakh shares changing hands—more than double the recent two-week average.
Such elevated volumes often point to institutional activity, and reports suggested that a significant block deal took place during the session. As per market buzz reported by Moneycontrol, around 1.19 crore shares were traded in a block deal worth approximately ₹344 crore. While the company has not officially confirmed the transaction, the market reaction indicates strong buying interest.
Over the last five trading sessions, Eternal stock has climbed over 8%, and it is up more than 6% in the past month—an impressive performance amid a volatile broader market.
Corporate Developments Supporting Investor Confidence
Beyond price action, several strategic updates have kept Eternal in the spotlight.
AI-Powered Onboarding Initiative
According to a report by Business Standard, Eternal recently launched a dedicated AI-powered hotline designed to simplify and accelerate onboarding for delivery partners. Once a call is placed, the system triggers an AI-enabled WhatsApp workflow that completes onboarding and background verification within minutes.
This initiative reflects the company’s continued focus on automation, efficiency, and scalability—critical factors in its food delivery and quick commerce businesses.
Overseas Subsidiary Dissolution
In a regulatory filing, Eternal informed exchanges that Zomato Netherlands B.V., a step-down subsidiary, has been dissolved with effect from January 27, 2026. The filing clarified that the confirmation was received on February 5, 2026. The move is seen as part of the company’s broader effort to streamline its corporate structure and focus on core markets.
Leadership Transition at the Top
Another major development was the leadership reshuffle at Eternal. Founder Deepinder Goyal stepped down as Managing Director and CEO, effective February 1, 2026. In his place, Albinder Dhindsa has taken charge as the Group CEO.
Leadership transitions often introduce uncertainty, but in Eternal’s case, the market appears reassured by continuity in strategy and execution, especially given Dhindsa’s operational experience in scaling businesses.
Eternal Q3 FY26 Results: Strong Growth Across Metrics
Eternal’s December quarter earnings were a key catalyst behind the renewed investor interest.
The company reported a 73% year-on-year jump in net profit to ₹102 crore for Q3 FY26. Consolidated revenue from operations more than tripled to ₹16,315 crore compared with ₹5,405 crore in the same quarter last year—highlighting rapid scale-up across business verticals.
Adjusted EBITDA also showed healthy improvement, rising 28% year-on-year and 63% quarter-on-quarter to ₹364 crore. Business-to-consumer net order value (NOV) increased 55% YoY and 11% QoQ to ₹25,732 crore, crossing an annualised run rate of ₹1 lakh crore.
Food delivery continued its recovery trajectory, with Q3 FY26 NOV growth of 16.6% YoY and 4.5% QoQ. Gross order value expanded over 21% year-on-year, reflecting stable demand and improved execution.
The standout performer remained quick commerce. Eternal reported 121% YoY and 14% QoQ growth in quick commerce NOV, even after accounting for GST changes and seasonal headwinds. Like-for-like NOV growth exceeded 130%, and the company added 211 net new stores during the quarter, taking the total count to 2,027.
Brokerage Views: Buy, Sell, or Hold?
Given the sharp run-up, investors naturally want to know whether there is still upside left in Eternal stock.
Emkay Global Financial Services has reiterated its ‘Buy’ rating on the stock but reduced its target price to ₹370 from ₹430. The brokerage remains positive on the long-term potential of quick commerce in India and Eternal’s strong unit economics, particularly through Blinkit. However, it flagged rising competition and the ongoing “land-grab” phase in the industry as near-term risks that could keep profitability volatile.
Meanwhile, Axis Securities has also maintained a ‘Buy’ call with a target price of ₹360. The firm highlighted Eternal’s diversified business model and presence across multiple strategic verticals as key strengths, while acknowledging that aggressive store expansion and competitive intensity may pressure margins in the short term.
Should Investors Own Eternal Stock?
Eternal’s recent rally is backed by tangible factors—robust Q3 earnings, improving operating metrics, strategic use of AI, and sustained momentum in quick commerce. The leadership transition has so far been taken in stride by the market, and brokerage houses continue to see meaningful upside from current levels.
That said, competition in quick commerce is intensifying, and the path to optimal profitability may be uneven. For long-term investors with a higher risk appetite and belief in India’s digital consumption story, Eternal remains a compelling play. Short-term traders, however, should be mindful of volatility after the sharp run-up.
Disclaimer: This article is for educational and informational purposes only. It does not constitute investment advice. Readers should consult certified financial advisors before making any investment decisions.