ETERNAL LIMITED (ETERNAL) | News Based Sentiment Analysis

• On September 3, 2025, Zomato increased its platform fee by 20%, from ₹10 to ₹12 per order, following a similar move by Swiggy, anticipating higher demand during the festive season; this decision is expected to improve margins, and shares rose nearly 2% to ₹329 on the BSE during early trade.
• Despite a 70% year-over-year revenue increase to ₹7,167 crore for the quarter ending June 2025, Eternal reported a significant 90% year-over-year decline in consolidated net profit to ₹25 crore, and a 36% sequential drop from ₹39 crore in the March 2025 quarter.
• For the full year ended March 2025, Eternal reported a net profit of ₹527.00 crore, up from ₹351.00 crore in 2024, with sales reaching ₹20,243.00 crore compared to ₹12,114.00 crore in 2024.
• A block deal on August 29, 2025, led to a 2.06% stock decline to ₹309 as approximately 66.76 lakh shares were sold at ₹315.50, totaling ₹210.64 crore, though analysts view this as "healthy consolidation" with potential buying opportunities at ₹286-₹300.
• Analysts currently have an average share price target of ₹303.67 for Eternal, representing a -6.61% downside from the price of ₹325.15 as of September 2, 2025, while another report indicates a range between ₹170.00 and ₹417.00.
• Eternal shares experienced positive momentum, rising 2.02% to ₹320.30 on September 1, 2025, and further increasing by 2% to ₹329 on September 3, 2025, with a 1-month return of 8.94% and reaching a 52-week high of ₹331.6 on September 4, 2025.
• Institutional holdings in Eternal increased to 68.93% as of September 4, 2025, representing a 1.01% increase over the previous quarter.

The Investment Story: Eternal Ltd. is navigating a complex period of rapid revenue growth alongside declining profitability, with recent stock fluctuations influenced by both positive market sentiment and a significant block deal.

What It Means for Investors: The mixed earnings results – strong revenue but sharply lower profits – highlight the challenges of maintaining margins during rapid expansion. While institutional interest remains high, investors should carefully consider the potential downside indicated by analyst price targets.

Looking Ahead: Investors should closely monitor the company's efforts to improve profitability in the coming quarters, as well as the impact of the festive season demand on Zomato's performance. The next quarter's forecast of ₹0.15 EPS and ₹82.64 billion in revenue will be key indicators.

The Bottom Line: Eternal Ltd. presents a high-growth, high-risk investment opportunity. The company's strong revenue growth is encouraging, but the declining margins and analyst caution warrant a careful and selective approach.