Eternal shares fell nearly 3% to an intraday low of ₹311 ahead of its September quarter earnings announcement. The stock is down for the second consecutive session, with over 8 million shares changing hands on the exchange. According to Informist Media, the company is expected to report a consolidated net profit of ₹3.02 billion, up over 228% on a sequential basis, with the top line projected at ₹235.02 billion, up 16% sequentially. The projected earnings are not comparable with the year-ago quarter due to a change in Eternal's quick-commerce business model, now following an inventory-led grocery delivery model unlike its previous aggregator approach.
Analysts expect Eternal's sales growth to be driven by strong traction in order value and monthly transacting users in food delivery and quick commerce segments. As per JM Financial Institutional Securities, Eternal's food delivery net order value is expected to rise 21% year-on-year, while quick commerce net order value is projected to grow 80% from a year ago. This growth trajectory supports the brokerage optimism, with UBS maintaining a Buy rating with ₹390 target and Jefferies hiking its target price to ₹430 from ₹415. The company is expected to deliver over 20% food delivery growth and rising confidence in its District platform.
The chemicals sector showed mixed results across brokerage recommendations. Jefferies maintains Hold on SRF with ₹2540 target, noting Q2 miss led by chemicals segment with margin pressures in specialty chemicals. Morgan Stanley maintains Underweight with ₹2260 target, citing non-fluoro verticals drag and consolidated gross margin decline reflecting raw material cost inflation. UBS maintains Sell with ₹2300 target, highlighting chemicals business revenue growth but margin decline amid pricing pressure and China overcapacity in specialty chemicals. However, Morgan Stanley notes robust refrigerant gas performance and expects India's R-32 supply to expand materially into 2027.
The broader market context shows Nifty 50 slipped below 23,000 points as benchmark indices came off day's highs, with the BSE Sensex performing slightly better. According to Informist Media, the key 50-stock index was firmly in the green though it slipped below the psychological 23,000 level. The broader market indices extended their decline from earlier, though volatility was largely contained. This market backdrop provides context for Eternal's pre-earnings decline, with the stock trading near intraday lows at 1130 IST.
The automotive sector shows UBS reporting festive retail trends with cars declining 17% while two-wheelers growth moderates to 5%, with TVS and Honda gaining market share. Jefferies notes 8th Pay Commission could boost consumption in FY28, with discretionary consumption expected to outperform broad-based consumption. Despite slower headcount additions in organized sector employment, wage growth improved to 9.4% estimated salary hikes in FY26.
