Eternal Shares Jump 7% After Q3 Results, Deepinder Goyal’s Resignation, Buy, Sell or Hold?
Eternal share price jumped sharply after the company released its Q3 FY26 results and announced a major leadership change, sparking fresh debate among investors and stock market watchers. Shares of Eternal rallied as much as 7.33 percent to an intraday high of ₹304.20 on the BSE, driven by better-than-expected earnings and strategic corporate news that influenced market sentiment. These movements are vital for anyone doing stock research or tracking AI stocks and tech-related equities in today’s markets.
Q3 FY26: Strong Financial Performance Drives Momentum
Eternal reported strong quarterly numbers, with consolidated net profit rising about 73 percent year-on-year to ₹102 crore for the quarter ended December 31, 2025, compared with ₹59 crore in the same quarter last year. Revenue from operations also more than doubled, climbing over 200 percent to approximately ₹16,315 crore from around ₹5,405 crore a year ago.
This sharp rise in revenue and profit was a key factor in lifting the Eternal share price. Analysts often look for such earnings beats as signals of operational strength, especially in tech-linked businesses where growth and scalability are crucial. Adjusted EBITDA grew to about ₹364 crore, up roughly 28 percent from the previous year, reflecting improving operating efficiency.
The strong Q3 performance underlined that the company’s diversified business model, including its food delivery arm and quick commerce segment, continues to generate momentum even in a competitive environment. For investors focused on sustainable earnings and growth trends, this data offers meaningful insights.
Leadership Change: Deepinder Goyal Steps Down
Alongside the impressive quarterly results, Eternal also announced that Deepinder Goyal, co-founder and Group CEO, will step down from his role effective February 1, 2026. He will transition to the position of Vice Chairman and remain involved in long-term strategic planning and corporate governance. Albinder Singh Dhindsa, currently the CEO of quick commerce arm Blinkit, has been appointed as the new Group CEO.
This leadership change mattered to the market because Goyal has been a central figure for the company since its founding. His resignation as CEO raised questions about future strategic direction, even as he stays on the board. Investors reacted by pushing the Eternal share price higher initially, possibly viewing the change as positive since Dhindsa has extensive operational experience within the group’s fastest-growing unit.
Adding to the story, Goyal is giving up significant unvested stock options valued at up to ₹1,000 crore, a move that analysts see as showing strong corporate governance and potentially reducing future dilution for existing shareholders.
What the Numbers Say About Growth Prospects
From a valuation standpoint, the robust revenue growth and profit acceleration signal encouraging fundamentals. Year-on-year figures show that Eternal is successfully scaling its operations while improving margins, albeit from a low base. The company has also been expanding its geographic footprint and adding new services, driving higher order volumes and engagement across platforms.
However, not all metrics were uniformly positive. In some parts of the analysis, adjusted EBITDA margins remained modest, and certain segments required continued investments to sustain growth. Rapid expansion often puts pressure on margins, and investors need to watch how these trends evolve over the next few quarters.
Market Reaction and Analyst Views
The market’s initial reaction was optimistic, as evidenced by the roughly 7 percent gain in Eternal’s share price on the day of the results. Some brokerage houses maintained their “Buy” rating, with target prices implying potential upside from current levels. One bank forecasted a target around ₹400, suggesting as much as 41 percent upside from the then prevailing price point.
This optimism reflects belief in the company’s core businesses, especially quick commerce, and confidence in management’s ability to sustain an earnings trajectory that supports higher valuations. Still, not all analysts were uniformly bullish, as some pointed out challenges like margin pressures and competitive intensity in core markets.
Buy, Sell, or Hold: What Investors Should Consider
- Buy: Investors with a long-term horizon might consider buying on dips. The strong revenue and profit growth, combined with an experienced leadership team and disciplined reinvestment strategy, offer a potential growth path. Those focusing on data-driven stock research may see value in the trend of improving fundamentals and market share gains.
- Hold: For current shareholders, holding makes sense if you believe in the company’s ability to translate revenue growth into sustainable profits. The leadership transition seems designed to preserve operational continuity, and the ongoing expansion of services supports a long-term growth story.
- Sell: Short-term traders or risk-averse investors might take profits after the recent run-up in price. Volatility tied to quarterly earnings and leadership announcements can lead to swift price swings, so booking gains could be prudent for some.
Key Risks to Watch
Investors should pay attention to several risk factors. Competitive intensity in food delivery and quick commerce remains high, which could impact pricing power and margins. Further, the company’s ambitious growth plans may require significant ongoing investments, occasionally weighing on quarterly profitability. Broader market volatility and shifts in consumer spending patterns can also influence the stock’s performance.
Final Take
Eternal share’s performance after Q3 results illustrates the dynamic nature of equity markets, especially for companies rooted in technology and delivery platforms. Strong financial results sparked optimism, while leadership change introduced fresh debate around strategy. Whether investors decide to buy, sell, or hold largely depends on their risk tolerance, investment horizon, and confidence in the company’s ability to sustain momentum in a competitive landscape.
FAQs
The stock rose mainly due to strong quarterly earnings, with revenue more than tripling and net profit increasing by about 73 percent year-over-year, indicating improved financial performance.
Goyal’s resignation as CEO is significant because he played a key role in shaping the company’s strategy, although he will continue in his role as Vice Chairman. The transition to a new CEO with deep operational experience is seen as a potential positive by some investors.
Holding might be wise for long-term investors who believe in growth prospects and improved fundamentals, while short-term traders may prefer booking profits after recent gains. Decisions should be based on personal risk tolerance and stock research.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
