ETERNAL LIMITED – Comprehensive Stock Analysis Report |Scrolls

by Karnivesh | 2026

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Eternal Limited’s journey is the story of an Indian internet company that outgrew its original identity. What began in 2010 as Zomato a simple food discovery and delivery platform has evolved into a multi-vertical consumer technology ecosystem touching how urban India eats, shops, and experiences leisure.

The company’s rebranding to Eternal in FY2025 was not cosmetic. It reflected a deeper strategic shift: from being a single-category food delivery company to becoming an integrated platform powering India’s changing lifestyles. Today, Eternal operates across food delivery, quick commerce, dining and entertainment experiences, B2B restaurant supplies, and experimental food formats all under one balance sheet.

At the core of this ecosystem lies food delivery, now a mature and dependable engine. After more than a decade of scaling, this business has reached structural profitability, generating steady cash flows with industry-leading margins. Rather than chasing aggressive growth, food delivery now plays the role of financial anchor funding expansion in newer, riskier verticals while reinforcing customer habits and platform stickiness.

The real transformation, however, is unfolding in quick commerce through Blinkit. What was once considered an unsustainable, cash-burning category has crossed a psychological threshold. In Q3FY26, Blinkit reached EBITDA breakeven for the first time, supported by massive scale, dense store clusters, and tighter control over inventory economics. With over 2,000 dark stores and triple-digit growth, Blinkit is no longer an experiment—it is emerging as the company’s most powerful long-term profit lever, provided margins continue to expand toward the 5–6% range seen in mature city clusters.

Alongside this, Hyperpure, the B2B restaurant supply business, quietly achieved breakeven after years of losses. While less visible to consumers, Hyperpure plays a critical strategic role strengthening restaurant relationships, improving sourcing economics, and supporting both food delivery and Blinkit with supply-chain efficiencies. Its profitability marks another step in Eternal’s shift from “growth at all costs” to disciplined scaling.

Not all parts of the story are profitable yet. District, Eternal’s going-out and entertainment platform, remains loss-making as the company invests heavily in live events, movie ticketing, and dining-out experiences. This business is still in a category-creation phase, competing in fragmented markets dominated by entrenched players like BookMyShow. Yet, the logic is clear: if successful, District could unlock a large, under-digitized experiences market and meaningfully expand customer lifetime value across the ecosystem.

Financially, Eternal now stands at an inflection point. Multiple businesses that once consumed cash are beginning to generate it. The balance sheet is exceptionally strong, with significant cash and investments providing flexibility to fund expansion, absorb regulatory shocks, or pursue strategic opportunities. Management depth has increased, succession planning is underway, and the organization is transitioning from founder-driven execution to professional scale management.

However, this optimism comes at a price valuation. The stock trades at extremely high multiples, implying near-flawless execution across all major verticals. Markets are pricing in sustained high growth, successful margin expansion in quick commerce, and eventual profitability in District. Any slowdown, competitive misstep, or delay in profitability could trigger sharp valuation compression.

In essence, Eternal represents a classic high-growth, high-expectation story. It is no longer just a food delivery company it is a platform bet on India’s digital consumption future. If the ecosystem scales as envisioned, the earnings potential is enormous. If execution falters, the downside is equally real.

This is a company transitioning from promise to proof and the next few years will determine whether Eternal becomes one of India’s defining consumer-tech success stories or a cautionary tale of growth priced too far ahead of reality.