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Shares of food delivery firm Eternal slid 4.2% to their day’s low of Rs 333.75 on the BSE on Friday, October 17, after the company reported a sharp 63% year-on-year (YoY) decline in its consolidated net profit for the September quarter.The net profit stood at Rs 65 crore in Q2 FY26, down from Rs 176 crore in the same period last year. The profit after tax (PAT) attributable to the owners of the parent also missed analyst expectations, which were pegged at Rs 108 crore.Despite the YoY decline in profitability, the company delivered a robust performance in terms of revenue. Revenue from operations jumped 183% YoY to Rs 13,590 crore, compared to Rs 4,799 crore in the corresponding quarter of the previous financial year.This led to various brokerage firms raising the stock’s target price to as high as Rs 415.On a sequential basis, Eternal posted a 160% increase in net profit compared to Rs 25 crore reported in Q1 FY26. The topline also showed strong sequential momentum, rising 90% from Rs 7,167 crore in the April–June quarter to Rs 13,590 crore in Q2.Here’s what brokerage firms are saying:Elara Capital: Buy| Target price: Rs 415Elara has maintained a "Buy" rating on Eternal with a target price of Rs 415.In the food delivery segment, Zomato’s November order volume grew 13.8% year-on-year (YoY), while gross order value rose 18.6%, supported by a record 24.1 million users. Margins improved to 5.3%, though they were tempered by higher discounts. In Blinkit’s quick commerce business, order volume surged 137% YoY, with 272 new stores added and a 134% increase in users.Notably, 80% of the business shifted to the Instant Purchase (IP) model, boosting margins by approximately 100 basis points. Eternal plans to expand to 2,100 stores by December 2025 and 3,000 by FY27, with over 60% of new additions concentrated in top cities to support same-store sales growth.Blinkit’s EBITDA losses remained flat quarter-on-quarter, and the segment is on track to break even by the end of FY26. Elara has also raised its forecasts, projecting 130–190% growth in sales and a 25–45% rise in EBITDA for FY27–28, driven by improved profitability from the IP model.Morgan Stanley; Overweight| Target price: Rs 330Morgan Stanley maintained an "Overweight" rating on Eternal with a target price of Rs 330.The company’s adjusted revenue grew 172% YoY, exceeding estimates by 15%, led by a strong Quick Commerce (QC) contribution. However, adjusted EBITDA came in below estimates due to higher segment losses.Food delivery saw 13.8% YoY growth, with EBITDA beating expectations, though GST on 25% of orders impacted growth. QC revenue surged 137% YoY, but losses widened due to aggressive store expansion and marketing. Eternal added 272 new QC stores and revised its expansion target to 2,100 stores by Dec 2025 and 3,000 by Mar 2027.GST-related demand is expected to normalize in Q3FY26, with margin gains from the Instant Purchase mix likely over the next 4–6 quarters.Goldman Sachs: Buy| Target price: Rs 390Goldman Sachs has maintained a “Buy” rating on Eternal, raising the target price to Rs 390 from Rs 360.The brokerage noted that growth and margins for both the Food Delivery and Blinkit (Quick Commerce) segments fell short of its expectations. However, margins in food delivery remained broadly in line.The increase in store additions and higher user acquisition spending led Goldman Sachs to cut its FY26–27 EBITDA estimates by 10–30%, although the long-term outlook remains intact. Blinkit’s November estimates were raised by up to 15%, driven by a strong store rollout and solid product–market fit.Goldman Sachs also observed that the competitive landscape remains favorable, enabling market share gains in Quick Commerce. Following the Q2 results, its overall estimates for November rose by approximately 8%, while the steady-state margin outlook remained unchanged.Also read: Reliance Industries Q2 results preview: O2C, Jio to power 11% profit growth; retail seen lagging(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

The dollar remained on the back foot on Friday as global trade frictions and signs of weakness in the U.S. economy supported the case for more rate cuts by the Federal Reserve.The dollar index is set for its biggest weekly drop in almost three months as an extended shutdown of the U.S. government blocked the publication of key economic data. The yen held on to gains after Bank of Japan Governor Kazuo Ueda spoke about factors that could lead to a rate increase this month.Compounding concerns about trade, Fed independence and the U.S. shutdown are making the greenback vulnerable to the debasement trade, where investors seek assets that can't easily be devalued, said Pepperstone research strategist Dilin Wu."It's really hard to find a bullish scenario for the dollar index," said Wu. "Instead of betting on any currency by a single sovereign credit, people are rushing into gold, cryptocurrency, and other assets as a risk hedge."The dollar index, which measures the greenback against a basket of currencies, was little changed at 98.23 and remained on course for a 0.6% slide this week - the biggest five-day retreat since late July.Against the Japanese yen, the dollar weakened 0.2% to 150.12. BOJ Governor Ueda said in Washington on Thursday that the central bank remains ready to increase its key policy rate if the likelihood of its growth and price forecasts materializing increases. BOJ Deputy Governor Shinichi Uchida is due to speak later on Friday.The euro added 0.1% at $1.1701, while sterling also tacked on 0.1% to $1.3446.Fed Governor Christopher Waller said he is on board with another interest rate cut at the U.S. central bank's meeting later this month because of the mixed readings on the state of the job market.Stephen Miran, the Fed's newest governor and an economic advisor to U.S. President Donald Trump, reiterated support for more aggressive rate cuts at upcoming meetings than the one favored by some of his colleagues. Miran's seat expires at the end of January, while Fed Governor Lisa Cook remains in place as the case over Trump's attempt to fire her winds through the courts.The Fed's Beige Book offered little support to U.S. rates, pointing to emerging signs of economic weakness, including rising layoffs and reduced spending among middle and lower-income households.Trade frictions between Beijing and Washington heated up overnight, with China accusing the U.S. of stoking panic over its rare earth controls, rejecting a White House call to roll back the curbs.In cryptocurrencies, bitcoin gained 0.6% to $108,534.66, and ether rose 1.8% to $3,919.71.