Eternal Ltd., the parent company of food delivery platform Zomato and quick-commerce arm Blinkit, has reached a new milestone in India’s equity markets. The firm’s market capitalisation has climbed to around Rs. 3.13 lakh crore, propelling it ahead of industrial heavyweight Tata Motors and luxury goods leader Titan. Despite a sharp drop in profitability, Eternal’s revenue surge—powered largely by Blinkit’s rapid expansion—has driven strong investor enthusiasm. With its inclusion among the top 25 companies in the Nifty50 by market value, Eternal’s rise underscores a broader shift toward digital-first business models reshaping India’s corporate landscape.
Market Capitalisation Milestone
Eternal’s valuation crossing Rs. 3.13 lakh crore marks a pivotal moment in its corporate journey. This achievement positions it above Tata Motors, valued at Rs. 2.64 lakh crore, and Titan, with a market capitalisation of about Rs. 3.11 lakh crore. In addition, Eternal has overtaken other well-established firms such as ONGC, Adani Ports, Bharat Electronics, and Wipro. Its ascent highlights the changing weight of technology-driven consumer businesses in India’s stock market rankings, where digital platforms are now standing shoulder to shoulder with legacy conglomerates.
Revenue Growth vs. Profitability Strain
While Eternal’s valuation story is one of momentum, its financial performance reveals a contrasting picture. For the first quarter of FY26, the company reported a net profit of only Rs. 25 crore, reflecting a 90% year-on-year decline. Yet, revenue soared nearly 70% to Rs. 7,167 crore, driven primarily by Blinkit, which has recently outpaced the company’s food delivery division in terms of net order value. Investors appear willing to overlook near-term earnings weakness in anticipation of longer-term gains from the quick-commerce sector, which is expanding at breakneck speed.
Stock Market Rally
Eternal’s stock has staged a remarkable recovery. From a 52-week low of Rs. 189.60 in April 2025, it has surged more than 70%, recently touching Rs. 334.40. Over the past six months, shares have advanced nearly 60%, while year-to-date gains stand at around 17%. This rally underscores the strength of investor conviction in the company’s growth prospects, particularly the transformative potential of Blinkit. Mutual funds and institutional investors have also increased their exposure, amplifying demand for the stock.
Shifting Corporate Hierarchies
Eternal’s inclusion among the top 25 Nifty50 companies by market cap carries symbolic weight. Surpassing Tata Motors and Titan—stalwarts of India’s auto and luxury retail industries—reflects the growing dominance of consumer-tech enterprises. This development suggests that markets are increasingly valuing scalability, user growth, and technological integration over traditional industrial metrics. However, it also sets a higher bar for Eternal to deliver sustainable performance in a competitive environment.
Outlook and Challenges
While Eternal’s trajectory reflects optimism, challenges remain. Quick commerce, though growing rapidly, is cost-intensive due to delivery logistics, supply-chain management, and discounting. Sustained profitability will hinge on improving unit economics, controlling expenses, and navigating regulatory scrutiny. Moreover, with a market cap nearing that of state-backed giants like NTPC and Hindustan Aeronautics, Eternal must prove its ability to sustain growth without overextending.
Conclusion
Eternal’s leap over Tata Motors in market capitalisation marks more than a symbolic victory—it embodies a structural transformation in India’s corporate order. By capitalising on the momentum of Blinkit and consumer-tech adoption, the company has positioned itself at the forefront of the new economy. Yet, its long-term success will depend on balancing rapid expansion with financial discipline, ensuring that its valuation story translates into enduring shareholder value.
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