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4h ago

Citi, JM Lift Eternal Targets on Blinkit Surge as Shares Hit 52-Week High

Analysts cite Blinkit's rapid GOV growth with improving unit economics, projecting adjusted EBITDA break-even in Q3 FY26.

Delhivery may benefit the most, thanks to its robust supply chain capable of handling demand surges without significant service quality impact.
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Overview

  • Citi raised Eternal’s price target to Rs 395 from Rs 320 with a buy rating, increasing its Quick Commerce EV-to-GOV multiple to 2.25x and forecasting FY26 GOV growth of 123%.
  • JM Financial reiterated buy with a Rs 400 target, flagging ongoing market-share gains for Blinkit, a shift to an inventory-led model, and a trajectory to break even in Q3 FY26.
  • Eternal’s shares touched an intraday 52-week high of INR 347.50 after the Citi note before paring some gains during the session.
  • Recent results underscore the scale-up tradeoff: Q1 FY26 operating revenue rose over 70% to INR 7,167 crore while consolidated net profit fell to INR 25 crore, with Blinkit overtaking food delivery in revenue contribution.
  • Fresh previews point to strong near-term momentum, with ICICI Securities estimating Blinkit’s Q2 GOV to rise about 26–27% sequentially, as brokerages also note rising competitive intensity from Instamart and a Citi target hike for Swiggy.