Eternal share price edges higher ahead of Q1 results 2026. Should you buy or sell?

Eternal share price rose marginally, surged as much as 0.63% on NSE, in Wednesday's trading session ahead of its June quarter results (Q1 results 2026) announcement on 22 July.

Eternal shares opened at ₹287.80 apiece today, as compared to previous close of ₹286.60 on Tuesday. The stock touched an intraday high of ₹289.20 apiece on 22 July.

According to brokerage firm Motilal Oswal, Eternal's net order value (NOV) for the FD & QC businesses is likely to grow 19.7%/84.4% YoY, with FD take rates of 21.5% and QC gross profit of 26.9%.

The firm further anticipates Blinkit’s NOV is likely to grow 17.9%/84.4% QoQ/YoY.

“FD’s adj. EBITDA as a % of NOV margin may rise 60bp QoQ to 6.1%. Blinkit is likely to post a contribution margin of 5.2% and adj. EBITDA margin of 0.6% as a % of NOV in 1Q,” said the company.

Meanwhile, Seema Srivastava, Senior Research Analyst at SMC Global Securities, believes that Eternal's results are expected to be +ve, supported by continued strong growth in Blinkit's quick commerce business, resilient food delivery demand and improving operating leverage.

“However, aggressive competition from Swiggy, Zepto and other players, continued investments in dark store expansion and elevated customer acquisition costs may keep margins under pressure,” Srivastava said.

Key things to watch includes Blinkit's GOV growth, EBITDA margin trajectory, dark store additions, food delivery demand, cash burn, profitability trends and management's outlook on competitive intensity and quick commerce expansion, she added.

Harshal Dasani, Business Head – INVasset PMS, said that Eternal remains one of the strongest consumer internet businesses in India, but the stock is not a straightforward pre-results trade. The market already assigns a premium to Blinkit’s leadership and is pricing in sustained execution, leaving little margin for disappointment.

Dasani further noted that the Q1 earnings will not be judged merely on revenue growth. The key question is whether Blinkit can continue expanding rapidly while improving unit economics and protecting margins despite an increasingly competitive quick commerce landscape.

"Our view remains constructive on the business but measured on the stock at current valuations. Investors should focus on Blinkit’s net order value growth, dark store productivity, EBITDA trajectory and the cash generation of the core food delivery business.

On the other hand, a combination of strong growth and improving margins could reinforce confidence in the company’s long-term earnings trajectory. At this stage, staggered accumulation appears more prudent than chasing the stock immediately ahead of the results. The long-term opportunity remains intact, but at current valuations, execution needs to remain consistently ahead of expectations for the premium to sustain," Dasani added.

On the other hand, Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, remain bullish on Eternal ahead of its Q1 FY26-27 earnings, expecting a strong set of numbers supported by healthy business performance.

“The stock is also likely to benefit from anticipated MSCI inflows, which could provide an additional trigger. Experts recommend buying the stock in the ₹285–286 range, with a stop-loss at ₹268. On the upside, they see potential targets of ₹294, ₹304, and ₹320+,” Ojha said.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.