Motilal Oswal reiterates Buy on Eternal, sees 34% upside on $1B EBITDA goal by FY29
Brokerage backs Rs 380 target citing three engines: 18-20% food delivery growth, Blinkit quick commerce scaling to 3,000 dark stores by March 2027, and District going-out. Targets $1B adjusted EBITDA by FY29 ($500M QC, $425M food delivery, $125M District).
What happened
Zomato (Eternal) · Motilal Oswal reiterates Buy on Eternal (Zomato) with Rs 380 target, 34% upside, citing three growth engines: food delivery, Blinkit quick
Key facts
- Target Rs 380
- 34% upside
- 18-20% food delivery growth
- 3,000 dark stores by March 2027
- $1 billion adjusted EBITDA by FY29
- $500M QC EBITDA
- $425M food delivery EBITDA
- $125M District EBITDA by FY30
- Q4FY26 net profit Rs 174 crore (+346% YoY)
- Q4 revenue Rs 17,292 crore (+196% YoY)
Why this matters
Eternal's three-engine model—food delivery, Blinkit QC, and District going-out—signals a diversified platform where District ($125M) remains the smallest and most likely M&A or partnership lever.
What to watch
- Quarterly Blinkit adjusted EBITDA turning positive vs guidance
- Dark store count trajectory vs the 3,000-by-March-2027 milestone
- Food delivery GOV growth staying in the 18-20% band
- QC take-rate and average order value trends amid discounting
- New entrant or capital raise from Amazon/Flipkart in quick commerce
- Regulatory action on gig-worker or quick commerce practices
- Peer brokerages recalibrate targets around Rs 350-400, tightening consensus
- Eternal management guidance on dark-store rollout pace and QC contribution margin at next earnings
- Competitors (Zepto, Swiggy Instamart) accelerate store additions and fundraising in response
- Institutional flows rotate into Eternal on the EBITDA-visibility narrative