Zomato Share Price Target At Rs 290: Can Blinkit’s Surge Drive Eternal’s Stock Higher?

Zomato Share Price Target: Eternal Ltd, formerly known as Zomato, announced its Q4 FY25 results, showing a mixed performance as gains in Quick Commerce (QC) and Hyperpure were offset by continued sluggishness in its core food delivery business. Brokerage firm Emkay has maintained its ‘BUY’ rating on Eternal with a current market price (CMP) of Rs 233 and a target price (TP) of Rs 290.

Zomato Q4 Resukts FY25
Eternal reported an 8% quarter-on-quarter (QoQ) growth in adjusted revenue to $61.8 billion, with QC and Hyperpure growing 22% and 10% QoQ, respectively. However, the food delivery segment saw a 0.2% decline, and the 'Going Out' business dropped 12%.

Emkay noted, “Eternal delivered broadly inline operating performance in Q4. Revenue grew 7.9% QoQ, better than our estimate, led by Quick Commerce and Hyperpure.”
Despite Blinkit’s strong 20.8% QoQ growth in gross order value (GOV) to $94 billion, profitability took a hit. The EBITDAM for QC dropped further to -1.9% of GOV in Q4 from -1.3% in Q3 due to rising customer acquisition costs and aggressive store expansion—Eternal added a record 294 Blinkit stores in Q4.

Competitive Pressure to Persist
Management admitted that rising competition in QC, particularly from e-commerce players entering non-grocery delivery, will pressure margins. Eternal plans to scale up to 2,000 Blinkit stores by December 2025, prioritising growth over near-term profitability.

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Key takeaways from the earnings call included a renewed focus on food delivery through assortment, affordability, and faster deliveries. Meanwhile, two experimental initiatives—Quick and Everyday—are being shut down due to poor scalability and return on investment.

Cash Reserves and Metric Revisions
The company's cash reserves stood at $188.2 billion, down temporarily due to advances paid for IPL and movie ticketing in the 'Going Out' segment. Eternal also introduced a new metric—NOV (Net Order Value)—to better reflect actual customer spend by excluding discounts and inflated MRPs from GOV.

Eternal Share Price Target
Emkay concluded, “We expect the stock price to remain range-bound in the near term due to heightened competitive intensity in QC and planned investments in Going Out.” However, the brokerage continues to value Eternal with a March 2027 DCF-based target price of Rs 290.