In an electrifying performance on the Indian stock market, Eternal shares have captivated investors, surging by over 8% in just the last two trading sessions. On Thursday, June 5, 2025, the stock climbed a significant 5%, hitting an intraday high of Rs 258.3 on both the NSE and BSE. This strong upward momentum reflects a burgeoning confidence among investors in the company's strategic direction and its future potential within India's bustling digital economy. The recent jump in eternal share price has certainly turned heads.
Morgan Stanley's Unwavering Confidence
A key catalyst behind this impressive rally is the consistent bullish stance from global financial giant Morgan Stanley. The firm has not only reaffirmed its 'Overweight' rating on Eternal but has also maintained a robust target price of Rs 320 per share. This strong endorsement stems from several core strengths Morgan Stanley identifies: Eternal's undisputed market leadership in both food delivery and the burgeoning quick commerce segments, its highly efficient cost structure leading to better unit economics, and a solid balance sheet that minimizes future equity dilution risks. Their analysis suggests a favorable risk-reward outlook, with a potential downside floor around Rs 200–220, making the current eternal share price an interesting point for consideration.
The Quick Commerce Revolution: A Growth Catalyst
The quick commerce sector in India is rapidly transforming the retail landscape, and Eternal is at its forefront. Morgan Stanley has significantly revised its projections for this market, now anticipating it to expand to a colossal $57 billion by 2030. This upward revision, from an earlier estimate of $42 billion, is driven by faster customer adoption, broader city coverage beyond metropolitan areas, and a stronger-than-expected gross order value (GOV).
While growth assumptions for the traditional food delivery segment remain stable, the brokerage has slightly raised margin forecasts, hinting at improved operating leverage and profitability across Eternal's diverse verticals. Furthermore, Morgan Stanley has increased its GOV assumptions for quick commerce by 9-11% for fiscal years 2026-2028, projecting a peak in adjusted EBITDA losses by the fourth quarter. This paints a picture of aggressive investment now, with an eye on significant profitability down the line, a crucial factor for the future of eternal share price.
Dissecting Q4 FY25 Earnings: A Mixed Bag with Strong Revenue
Eternal's financial report for Q4 FY25 offers a nuanced view. The company recorded a consolidated net profit decline of 77.7% year-on-year, settling at Rs 39 crore. This drop in profit can largely be attributed to the aggressive investments being made in expanding the quick commerce network, particularly Blinkit, and associated operational costs. However, the picture brightens significantly when looking at the top line. Revenue from operations soared by a remarkable 63.8% year-on-year, reaching Rs 5,833 crore. This substantial revenue growth demonstrates Eternal's strong ability to expand its user base and transaction volumes, even as it focuses on capturing market share in nascent but high-potential segments. The underlying revenue strength is a key metric for many looking at the eternal share price.
The Road Ahead: Balancing Growth and Profitability
Eternal's stock performance over the past few months has shown resilience, gaining 14% over the last three months. However, it remains down 7% year-to-date, indicating that the company is still navigating its path toward consistent long-term profitability amidst intense competition and ongoing investments.
The long-term outlook remains positive, with analysts pointing to Eternal's strategic focus on market leadership, its robust operational framework, and its commitment to technological innovation. As India's digital consumption continues to expand, companies like Eternal, which are deeply embedded in daily consumer habits, are well-positioned for sustained growth. Investors will be closely watching how the company balances its aggressive growth initiatives in quick commerce with its path to overall profitability. The journey of eternal share price will largely depend on these dynamics
