Emkay raises Eternal target price to Rs 420 and keeps Buy rating

what happened

According to TradingView, citing a research report from Emkay Global Financial, Eternal's performance in 2QFY27 was healthy. Quick commerce NOV growth rose to 22.2% QoQ in the period, up from 19.1% in 1QFY27, while adjusted EBITDA for food delivery grew 24.7% YoY to Rs 6.27 bn. Growth accelerated for a fifth straight quarter to 21.5% YoY, although margins eased sequentially.

Management reported strong demand in smaller cities, with OPD ramp-up tracking metro levels and sustainable unit economics. Blinkit added 308 stores, bringing the total to 2,751. Its March 2027 store target was raised to more than 3,500 from 3,000, and the March 2028 target to 5,000.

As a result, the analysts cut FY27E and FY28E EBITDA estimates by about 10%, but raised FY29 and FY30 estimates by 1% and 10%, lifting the NPV. Eternal also announced dark.ai, a privacy-first AI assistant aimed at power users. Pending details on monetization and cost structure, Emkay keeps a neutral stance on the product.

why it matters

The analysts believe Eternal is best placed to capture the quick commerce opportunity in India, so they retain their Buy rating. For investors, the signal is that the market will watch Blinkit's growth and store rollout as the main driver of the company's value. The item concerns a single issuer but matters for how investors assess India's quick delivery sector.

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