Eternal, formerly known as Zomato, is likely to report solid revenue growth in the fourth quarter, but the profitability is likely to take a severe hit. Analysts expect March quarter revenue growth to come in at 62% YoY, with a solid contribution from Hyperpure and Blinkit revenues.

There are varied estimates for profit. For instance, brokerage Kotak is estimating a PAT fall of nearly 83% to Rs 29.7 crore from Rs 175 crore posted in the year-ago quarter. Nuvama, meanwhile, is expecting a loss of Rs 36 crore.

Kotak sees the food delivery business revenues growing 19% YoY, while that of Hyperpure and Blinkit are likely to jump 84% YoY and 104% YoY, respectively.

“We model 10 bps QoQ expansion in consolidated margins of food delivery business to 8.6% in 4Q; coupled with GMV increase, this will result in 4.3% EBITDA margin as % of GMV for this segment,” the brokerage said.

Motilal Oswal sees the overall revenue growing at 64% YoY in 4QFY25. “For food delivery, adjusted EBITDA as a % of GOV margin is expected to inch up 40bp QoQ to 4.7%,” it said. The food delivery revenue will be driven by volume growth.

Blinkit is projected to sustain its growth momentum with upwards of 100% business growth. This sharp growth will be driven by rapid store addition.However, analysts are pencilling in an EBITDA loss of Rs 250 crore for the Blinkit business as new store addition will offset higher profitability of older stores.Shares of Eternal had a decent run this year, rising nearly 10% on a year-to-date basis. Goldman Sachs has a ‘Buy’ rating on the stock with a 12-month target price of Rs 310.

The brokerage highlighted potential margin upside for Blinkit following the company’s proposal to cap foreign shareholding at 49.5%.

The investment bank said the move could result in 15–20% higher EBITDA for Blinkit by FY30, translating to an incremental Rs 35 per share value for Eternal.

Recently, the company’s CEO Rakesh Ranjan, appointed in May 2023, stepped down from his role. Ranjan has resigned from his designation, but will continue to play a role in the company in a different capacity.

Meanwhile, Deepinder Goyal, the founder will be overseeing the vertical until a permanent replacement is finalised.

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