Eternal's Net Profit Plummets 90% Despite Blinkit's Market Lead
Eternal's consolidated net profit nosedived by over 90% to INR 25 Cr in Q1 FY26, despite Blinkit maintaining its lead in the quick commerce race. Meanwhile, Goldman Sachs has shown confidence in the company, raising its price target to INR 360 and buying a stake worth INR 266.9 Cr.
Eternal's financials for the first quarter of FY26 indicate a significant drop in net profit. However, the company's quick commerce arm, Blinkit, continues to lead the market, suggesting potential for future growth.
Goldman Sachs has reiterated its 'Buy' rating on Eternal, raising its price target by 15% to INR 360. This positive outlook comes after the investment bank purchased 82 Lakh shares in a block deal, worth INR 266.9 Cr. The shares were bought at INR 325.50 apiece, a slight discount from the stock's last close price. This transaction marks the second time Goldman Sachs has sold a stake in Eternal, with the first instance involving a sale to Morgan Stanley for INR 31.6 Cr.
Despite the significant drop in net profit, Eternal's stock has grown nearly 19% on a year-to-date basis, reaching a fresh all-time high of INR 343.95. Goldman Sachs' recent purchase and price target raise indicate confidence in the company's long-term prospects, although the identity of the seller in the latest transaction remains unclear.
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