Eternal, the parent company of Zomato, saw its shares climb 1.69% to ₹303.50 on Monday as investors reacted to a dramatic improvement in profitability.
The stock outperformed rival Swiggy, which edged up marginally to ₹286.40 on the National Stock Exchange, highlighting a divergence in market sentiment between the two Indian quick-commerce leaders following their Q1 FY27 earnings releases.
The rally in Eternal’s stock was underpinned by a 268% year-on-year surge in consolidated net profit for the April–June quarter, with the company reporting earnings of ₹92 crore.
The rally in Eternal’s stock was underpinned by a 268% year-on-year surge in consolidated net profit for the April–June quarter, with the company reporting earnings of ₹92 crore.
This sharp acceleration in profitability marks a significant milestone for the firm, which has long been scrutinized for its path to sustained earnings growth amid intense competition in the food delivery and quick-commerce sectors.
Swiggy’s more muted price response suggests investors are pricing in a slower or less pronounced profitability inflection for the rival platform.
While both companies operate in the same high-growth but capital-intensive market, Eternal’s ability to scale earnings so aggressively has shifted the narrative from pure user acquisition to margin expansion.