- Stock jumped 6.7% on record volume, fueled by a massive block trade.
- Q3 net profit surged 73% YoY; revenue tripled to ₹16,315 cr.
- Leadership change: Deepinder Goyal exited, Albinder Dhindsa took the helm.
- New AI‑powered onboarding hotline could slash partner acquisition costs.
- Analysts stay bullish but trimmed targets amid rising competitive pressure.
You missed Eternal's breakout move, and your portfolio is paying the price.
On Tuesday the stock surged to ₹308.05, a 6.70% gain on a day that saw nearly ₹344 cr change hands in a single block deal. Heavy trading on both NSE and BSE confirms that the market is not just watching—it’s acting. But why did the price rocket, and more importantly, what does it mean for your next trade?
Why Eternal's Margin Surge Aligns With QCom Industry Trends
Eternal’s Q3 earnings painted a picture of explosive top‑line growth: consolidated revenue rose from ₹5,405 cr a year ago to ₹16,315 cr, a 202% jump. Adjusted EBITDA climbed 28% YoY and 63% quarter‑on‑quarter to ₹364 cr, translating to an EV/EBITDA multiple of roughly 38× for FY28. These figures are not isolated; they echo a broader surge in India’s quick‑commerce (QCom) sector, where players are racing to lock down urban micro‑fulfilment hubs.
Industry analysts note that QCom is in a "land‑grab" phase. The rapid addition of stores—211 net new locations in Q3 alone—shows that the race for last‑mile density is intensifying. While this drives revenue, it also squeezes margins as firms invest heavily in logistics and technology. Eternal’s ability to sustain a 130%+ like‑for‑like NOV growth suggests it has a cost‑efficient model, but the sector‑wide competitive intensity could temper profitability in the near term.
Eternal's AI‑Powered Hotline: Competitive Edge or Cost Sink?
The company’s latest strategic move is the launch of an AI‑driven onboarding hotline for delivery partners. The tool automates background verification and onboarding via a WhatsApp‑based workflow, completing the process in minutes. If the technology delivers on its promise, partner acquisition costs could drop dramatically, improving unit economics and allowing Eternal to scale faster than rivals who still rely on manual onboarding.
However, AI implementation carries hidden risks: integration costs, data privacy concerns, and the need for continuous model training. Competitors like Blinkit and Swiggy are also piloting AI solutions, meaning the advantage could be short‑lived if they match or exceed Eternal’s rollout speed. Investors should weigh the upside of a potentially leaner partner network against the execution risk of a nascent technology.
Leadership Transition: From Goyal to Dhindsa – What Changes?
Deepinder Goyal’s resignation as MD & CEO on February 1 marked the end of an era. Goyal was the public face of the brand, steering it through its rebranding from Zomato to Eternal. The new Group CEO, Albinder Dhindsa, inherits a business that just delivered a 73% YoY profit surge.
Historically, leadership swaps in Indian delivery firms have produced mixed market reactions. When Swiggy’s co‑founder stepped down in 2022, the stock dipped 4% before rebounding on a earnings beat. Conversely, Zomato’s CEO transition in 2020 was met with a modest rally as investors anticipated fresh strategic focus. Dhindsa’s background in operations and technology could accelerate the AI hotline rollout, but the market will be watching his ability to navigate the increasingly crowded QCom battlefield.
Sector Ripple Effects: How Tata, Adani, and Peers Are Positioning
While Eternal’s rally dominates headlines, the broader delivery ecosystem is also reshaping. Tata’s logistics arm has announced a partnership with a cloud‑AI provider to optimize route planning, aiming to cut delivery times by 15%. Adani’s recent acquisition of a regional grocery chain signals its intent to enter the quick‑commerce space, potentially adding a new heavyweight competitor.
These moves could compress Eternal’s market share if the incumbents leverage scale and capital. On the flip side, they validate the sector’s growth narrative, meaning the overall pie is expanding—good news for any player that can maintain or grow its slice.
Investor Playbook: Bull vs. Bear Cases for Eternal
Buy (Bull) Case: The stock trades at a 38× FY28 EV/EBITDA multiple, which is justified by a triple‑digit revenue growth trajectory, robust AI‑driven cost efficiencies, and a leadership team focused on operational excellence. Analysts from Emkay and Axis maintain BUY ratings, citing a 27‑30% upside to current levels. If the AI hotline reduces partner acquisition cost by even 10%, EBITDA margins could improve by 2‑3 percentage points, pushing valuation multiples down and delivering upside.
Sell (Bear) Case: The QCom arena is entering a hyper‑competitive phase. New entrants and aggressive pricing wars could erode margin expansion. The recent target price cuts (Emkay’s 14% reduction to ₹370, Axis’s target at ₹360) reflect concerns about near‑term profitability. Moreover, the dissolution of Zomato Netherlands B.V. hints at potential restructuring costs or regulatory headwinds that could surface later.
Investors should consider a phased approach: hold a core position to capture upside from AI‑enabled efficiencies, but set a stop‑loss around ₹300 to protect against a possible sector‑wide pullback.
In summary, Eternal’s 6.7% surge is more than a price spike—it’s a signal that the company is at a strategic inflection point. Whether the AI hotline and new leadership translate into sustainable margin growth will determine if the rally turns into a long‑term bull run or a fleeting flash.