Eternal Limited's remarkable growth story has hit a significant roadblock, with shares declining 32% from their lifetime high amid profit booking and valuation concerns. The food delivery and quick-commerce company's stock correction reflects broader market sentiment about stretched valuations in the technology sector.

Sharp Correction After Stellar Rally

The company's shares have experienced a dramatic reversal from their peak performance, highlighting the volatile nature of high-growth technology stocks.

The correction took 55 trading sessions to materialize, with 2025 turning into a washout year for investors despite the stock rising 38% between January and October before the decline set in.

Strong Revenue Growth Amid Profit Decline

Despite the stock's poor performance, Eternal demonstrated robust revenue growth in Q2 FY26, though profitability faced significant pressure.

The revenue surge was primarily driven by the quick-commerce business Blinkit, which reported exceptional year-on-year growth. However, the 63% decline in net profit raised concerns about the sustainability of the company's expansion strategy.

Market Outlook and Analyst Expectations

Brokerage Nuvama Institutional Equities expects Eternal to lead revenue growth in Q3 FY26, projecting continued momentum in the internet sector.

Analysts attribute the stock's correction to profit booking after the sharp rally in 2023 and 2024, when the stock delivered returns of 108% and 119% respectively. The company's market capitalization crossing ₹3.50 lakh crore was viewed as a red flag by market experts.

Regulatory Challenges Continue

Amid the stock's decline, Eternal continues to face regulatory challenges, including a pending GST demand order of ₹3.69 crore for FY20. The company has expressed confidence in appealing this order, which includes ₹1.92 crore in GST demand, ₹1.58 crore in interest, and ₹19.24 lakh in penalties.

Market experts suggest a cautious approach, with technical analysts recommending support at ₹270 and resistance at ₹288. The stock's future performance will likely depend on the company's ability to balance growth investments with profitability improvements.

Eternal Limited witnessed significant institutional trading activity on the National Stock Exchange (NSE) with a substantial block trade executed during the trading session. The transaction represents one of the notable block deals in the current market environment.

Block Trade Details

The block trade execution involved substantial volume and value, highlighting institutional investor participation in the stock. The following table summarizes the key parameters of the transaction:

Market Implications

Block trades typically occur when institutional investors, mutual funds, or other large market participants execute substantial transactions outside the regular market to minimize price impact. The execution at ₹280.35 per share indicates the price level at which institutional participants were willing to transact.

The transaction volume of approximately 42.31 lakh shares represents a significant portion of trading activity and suggests meaningful institutional interest in Eternal Limited's stock. Such large-scale transactions often reflect strategic portfolio decisions by institutional investors.

Transaction Significance

The ₹118.62 crore deal value underscores the scale of institutional participation in Eternal Limited's stock. Block trades of this magnitude typically indicate either fresh institutional buying or strategic exits by large shareholders, though the specific nature of the transaction participants remains undisclosed.

The successful execution of such a substantial block trade also demonstrates adequate liquidity in Eternal Limited's stock and the market's ability to absorb large transactions without significant price disruption.