Eternal Ltd.’s share price received a boost from research firm Citi as the brokerage firm increased the price target to Rs 395 from Rs 320, while maintaining a ‘buy’ rating on the stock. The 23% hike is driven primarily by the stellar growth momentum and strong market leadership of its Quick Commerce business—Blinkit.

The brokerage has significantly increased its valuation multiple and raised its margin estimates for the QC segment, now expecting it to achieve an adjusted Ebitda margin break-even by the third quarter of the financial year ending March 2025-26.

Quick Commerce Drives Valuation and Growth

Citi notes that Blinkit’s focus on user acquisition, rapid dark store expansion, and new city additions has solidified its market position, driving upside to both growth and margins.

Citi has raised its multiple for the Quick Commerce business from 1.7 times to 2.25 times Enterprise Value-to-Gross Order Value, effectively putting it on par with the Food Delivery segment. The firm has substantially revised its estimates, projecting Blinkit’s GOV to grow by 123% in fiscal year 2026 and 57% in fiscal year 2027 year-over-year.

For the second quarter preview, Blinkit is expected to demonstrate robust performance with Gross Order Value growth up to 140% year-on-year, aided by the festive season uplift in the latter part of the month. The segment’s Adjusted Ebitda margins are forecasted to see a de-growth of by 70 basis points quarter-on-quarter to 0.7% of GOV.

Stable Food Delivery and Revised Estimates

While Quick Commerce is the key re-rating driver, the core Food Delivery business continues to show stable trends.

Citi projects Food Delivery growth in the mid-to-high teens range, with margins stabilising at 4.3% and 4.5% of GOV in fiscal years 2026 and 2027, respectively. For the second quarter, Food Delivery GOV is expected to grow by 18% year-on-year.

Overall, the brokerage has increased its fiscal year 2026 and 2027 Quick Commerce GOV estimates upwards by 7% and 22%, respectively. The accompanying Adjusted Ebitda margin estimates for the QC business have also been lifted, reflecting accelerating growth and improved operating leverage across the platform.

. Read more on Markets by NDTV Profit.The 23% price target hike is driven primarily by the stellar growth momentum and strong market leadership of its Quick Commerce business, Blinkit  Read MoreMarkets, Business ​NDTV Profit