Market Brief: Eternal Limited (formerly Zomato) **Date:** February 3, 2026 **Price Action** Eternal shares witnessed a sharp rally today, surging **9.3%** to hit an intraday high of **₹298.50**. The stock is currently trading approximately **25%** below its recent peak, offering what analysts call an attractive entry point. **The Catalyst: Jefferies Upgrade** Global brokerage Jefferies has officially added Eternal to its high-conviction **India Model Portfolio**, replacing Godrej Consumer Products. * **Target Price:** Set at **₹480**, implying a massive **75% upside** from current levels. * **Rationale:** The firm labels Eternal an "FPI favourite," citing a favorable risk-reward ratio and "best-in-class" profitability in the quick commerce segment. **Q3 FY26 Financial Highlights** The company reported robust third-quarter numbers, underpinning the bullish sentiment: * **Net Profit:** Jumped **73% YoY** to **₹102 crore** (up from ₹59 crore in Q3 FY25). * **Revenue:** skyrocketed **202% YoY** to **₹16,315 crore**. * **Operating Profit:** Adjusted EBITDA climbed **28% YoY** to **₹364 crore**. **Segment Performance** * **Quick Commerce (Blinkit):** Reported positive EBITDA despite peak competitive intensity. The vertical is valued at **2.5x** March 2028 estimated revenues. * **Food Delivery:** Demand has recovered, with Net Order Value (NOV) growing **17% YoY**, marking the second consecutive quarter of acceleration. **Leadership Update** Jefferies viewed the recent management transition—Deepinder Goyal stepping down as CEO to hand the reins to Albinder Dhindsa—as a "governance milestone" with no expected disruption to operations.