Eternal: Strong performance across the board as QC/FD both accelerate despite competition

Research evidence excerpt

Eternal: Strong performance across the board as QC/FD both accelerate despite competition

J P M O R G A N Asia Pacific Equity Research

23 July 2026

Eternal Overweight

ETEA.NS, ETERNAL IN

Strong performance across the board as QC/FD both Price (22 Jul 26):Rs284.40

accelerate despite competition Price Target (Jun-27):Rs390.00

Eternal printed a strong but in-line quarter with acceleration across key businesses Head of APAC Telecoms and India

- QC, FD and District. QC NOV QQ growth rebounded to 19% QQ (86% YY) TMT Research

thanks to seasonality, supported by 17% QQ growth in monthly transacting Ankur Rudra, CFA AC

customers with EBITDA also rising to 0.6% of NOV despite elevated competitive (65) 6801-3237

activity. This reiterates the resilient customer traction for Blinkit’s model. ankur.rudra@jpmorgan.com

Management called out the peak for competitive intensity and exuded confidence J.P. Morgan Securities Singapore Private Limited

in dealing with competitive actions that have become predictable. Notably, Eternal Bhavik Mehta, CFA

has upped its LT Adj EBITDA margin target to 6% of NOV and accelerated capex (91-22) 6157-3871

bhavik.mehta@jpmchase.com

intensity as capex per store targets go up to Rs25mn from Rs10mn each. FD J.P. Morgan India Private Limited, J.P. Morgan

accelerated to 10/20%% QQ/YY, 1% ahead of cons/JPMe with margins in line at Tower, Santacruz(E), Mumbai - 400098, SEBI

Registration: INH000001873, (91-22) 6157-3000.

5.6%. While the numbers are in-line, QC/FD momentum leads us to bump up our

Harshit Sharma

estimates by 2-4%. Eternal trades at 38x/23x FY28/29 Adj EBITDA, which

(91-22) 6157-5879

appears undervalued. We roll fwd to Jun’27 keeping our PT unchanged at Rs390. harshit.sharma@jpmchase.com

Eternal remains our top internet OW. J.P.