Eternal’s investors can prepare for more positive earnings surprises

Eternal's Q1FY27 results showed strong growth with Zomato's food delivery net order value up 20% year-on-year to about Rs 10,769 crore and Blinkit surging 86% to Rs 17,132 crore, driving Ebitda up over 400% year-on-year to Rs 594 crore. Management maintained its FY29 Ebitda guidance of $1 billion, while improved Blinkit store economics (NOV per store raised to Rs 40 crore from Rs 25 crore, with capex rising to Rs 2.5 crore per store) suggest potential for positive earnings surprises ahead. Shares trade at EV/Ebitda of about 30x on FY29 estimates, which the article views as reasonable.