Eternal Ltd Q4 Results Preview: Strong Sales Expected, Blinkit Expansion May Hit: Buy or Hold? Experts' Rating

Zomato's parent company, Eternal Limited, is set to announce its financial results for the fourth quarter and full year 2024-25 on Thursday, May 1. Ahead of the results, top market analysts have shared their previews, offering insights on whether to hold or buy the stock and providing their forecasts for the company's performance.

Eternal Ltd Q4 Results: Date, Time, Dividend Announcement

According to a company update, the board of directors will meet on May 1 to approve the financial results. On the same day, at 5 p.m., the company will also hold a call with investors and analysts to talk about the results in more detail.

Zomato Q4 Preview

Experts believe that the company's profit in the March 2025 quarter may fall sharply compared to last year, even though its overall sales or revenue may go up. As per Kotak Institutional Equities (KIT), Eternal's profit may drop by 83% to Rs 29.7 crore compared to Rs 175 crore in the same quarter last year. Another brokerage firm, Elara Capital, also expects profit to fall by 72% to Rs 49.3 crore. The main reason for this drop is the rising cost of expanding Blinkit's services.

The food and grocery delivery company is expected to report strong growth in total revenue. Kotak Institute estimates a 59% jump in revenue to Rs 5,676.6 crore compared to last year. This growth is likely due to higher sales from Zomato's food delivery, Hyperpure's supply chain services for restaurants, and Blinkit's quick commerce business. Food delivery sales may grow by 19%, Hyperpure by 84%, and Blinkit by 103% compared to the same time last year.

The company is opening many new dark stores those are small local warehouses for fast delivery, which is leading to higher spending. Kotak Institute expects Blinkit to lose around Rs 250 crore in this quarter alone. Elara Capital noted that even though Blinkit is growing, the competition has forced it to spend more on discounts and getting new customers, which is impacting profits.

Another key brokerage Jefferies has also noted that Eternal and its rival Swiggy are both losing more money in their quick delivery businesses. While Blinkit's order numbers may grow by 12% from the last quarter, profit margins may fall due to extra costs at store level. On the other hand, Jefferies expected food delivery orders to grow 16% year-on-year but remain flat compared to the previous quarter.

Eternal Limited Shares: Buy or Hold Zomato Shares? Experts Rating on Eternal Stock

Brokerage firms have mixed views. Jefferies has rated Eternal shares as "Hold" with a target price of Rs 215.25, while ICICI Securities is more positive and has given it a "Buy" rating with a higher target price of Rs 310. ICICI expects steady growth in food delivery and strong growth in Blinkit orders, though some pressure on margins may continue.

Eternal is among one of the top five companies in India's Nifty 500 index with the biggest increase in planned investments for the future. According to Trendlyne, the company's capital spending is expected to rise by 242% this year. Most of this spending is going towards Blinkit's expansion, including more dark stores and warehouses.

Eternal Stock Movement: Zomato Share Price

NSE:ETERNAL- As of April 30, Zomato share which is listed as Eternal Ltd., closed at Rs 232.52 on the NSE (National Stock Exchange), showing a small gain of Rs 1.41 or 0.61% compared to the previous day.

BSE:ETERNAL- On the BSE (Bombay Stock Exchange), the stock ended at Rs 232.50, up by Rs 1.35 or 0.58%. The previous closing price was Rs 231.15. The stock opened the day at Rs 232 and traded between Rs 226.10 and Rs 234.70, showing the lowest and highest prices it hit during the day.

A total of over 4.58 crore shares were traded, indicating strong investor interest. Over the past year, the stock has moved between Rs 146.85 at its lowest and Rs 304.50 at its highest. The company's total market capitalisation-which is the total value of all its shares combined is Rs 2.23 lakh crore.

About Zomato Company: Eternal Limited

Eternal Ltd. or Zomato Ltd. was co-founded by Deepinder Goyal, who is also the current CEO of the company. It is a well-known Indian tech company that operates popular consumer platforms. The company owns popular brands like Zomato, Blinkit, Hyperpure, and District. While Zomato has changed the way food is delivered in India, Blinkit has become one of the top quick delivery services in the country.