Execution drives conviction

Research evidence excerpt

Execution drives conviction

Idea

July 22, 2026 10:35 PM GMT

Morgan Stanley India Company Private Limited+MEternal Ltd. | Asia Pacific Gaurav Rateria

Equity Analyst

Execution drives conviction Gaurav.Rateria@morganstanley.comSulabh Govila, CFA +91 22 6118-2237

What’s Changed Sulabh.Govila@morganstanley.com +91 22 6118-2249

Sakshi Rana

Eternal Ltd. (ETEA.NS) From To Research Associate

Price Target Rs347.00 Rs373.00 Sakshi.Rana@morganstanley.com +91 22 6118-1002

Shreshtha Chopra

Highlights: a) steady momentum in FD and QC NOV growth to ResearchShreshtha.Chopra@morganstanley.comAssociate +91 22 6118-2227

continue, b) strategy to maintain growth momentum irrespective

of competition was comforting, c) management believes QC

steady state margins can be at the upper end of a 5-6% range.

Key Takeaways Eternal Ltd. (ETEA.NS, ETERNAL IS)

Strong 1Q beat and commentary drive our estimates higher (in FD and QC). Top Pick

India Technology | India

Good execution should reinforce confidence in management's outlook.

Stock Rating Overweight

The stock has done well since mid-June (+23% vs. Sensex +4%), but we still see Industry View In-Line

Price target Rs373.00

room for re-rating.

Up/downside to price target (%) 31

Shr price, close (Jul 22, 2026) Rs284.40

1QF27 performance in QC was in line with buy-side estimates – but there is more 52-Week Range Rs368.45-212.60

Sh out, dil, curr (mn) 9,385

to the results: Most investors were focused on headline NOV growth QoQ and Mkt cap, curr (mn) US$27,735

EV, curr (mn) US$26,411

adjusted EBITDA numbers in Quick Commerce (QC), which came in broadly in line

Avg daily trading value (mn) US$124

with buy-side expectations. However, we think the results showed some strong

Fiscal Year Ending 03/26 03/27e 03/28e 03/29e

underlying trends across businesses.