Eternal Ltd — formerly known as Zomato — has seen a steep correction recently: its share price has dropped about 21% from the ₹368.45 high hit on October 16, 2025. Since that peak, the stock has fallen in 24 of the last 37 trading sessions.
📉 Why the fall
- The slump began soon after the company announced its Q2 FY26 results: profit plunged ~63% year-on-year to ₹65 crore, even as revenue surged 183%.
- This sharp profit decline triggered profit-booking and weakened investor sentiment, especially among short-term traders.
🔎 What remains positive
- Despite the profit drop, revenue growth remains strong — showing that demand and business scale (across food delivery, quick commerce, etc.) are intact.
- Several brokerages have retained bullish views. Some have raised their target prices for Eternal shares (e.g. to ₹400–₹430), suggesting they see longer-term value beyond the near-term earnings dent.
🧠 What this means for investors — buy dip or wait?
| Perspective | Viewpoint |
|---|---|
| Short-term / near-term traders | The 21% drop could still have more room — price has already weakened, but earnings disappointment and profit-taking could weigh further until sentiment improves. |
| Long-term investors | The fall may offer a buying opportunity if you believe in Eternal’s core business growth, scale-up potential across delivery & quick-commerce, and recovery of profitability. |
| Cautious investors | Wait for signs of stabilization — e.g. consistent profit growth or confirmation that brokerages’ positive outlook is justified — before committing. |
