Eternal’s Q3FY26 performance demonstrated strong execution particularly on QC segment with Blinkit achieving adj. EBITDA profitability for the first time, while maintaining robust y/y growth (NOV up 121% y/y), despite high competition intensity. This, along with solid performance in FD (+16.6% y/y NOV growth) and Hyperpure (achieving adj. EBITDA profitability), gives enough evidence of operational discipline and effective execution of strategy across the company’s business units. Considering this, we continue to maintain our positive stance on the company and retain our BUY rating with the TP of Rs400, assuming 35x FY28e EBITDA to FD, 2.3x/1.2x EV/NOV to QC/GO and 1.2x EV/Sales to Hyperpure. Further, we don’t see any material impact of leadership changes as segmental business heads have always remained autonomous in their respective processes.

Segmental Guidance: (a) FD: It continues to aim ~20% y/y NOV growth over the longer-term (NOV up 14.5% y/y in 9MFY26); (b) QC: With ~2,027 dark stores currently operational, the company is on track to achieve ~3k stores (or even ~3.5-4k stores) by Mar-27, subject to competition intensity; (c) Hyperpure: Over the next three years, it is optimistic of segment’s $1bn topline (~25-30% topline CAGR) with ~4-5% adj. EBITDA margin; (d) Going Out: It expects losses to reduce (~Rs 2.4bn loss in 9MFY26) and reaching breakeven over the next 4-6 quarters, with plans in-place to earn $3bn NOV  and ~5% Adj. EBITDA margin by FY30 (~Rs 66bn NOV with -ve 3.6% margin in 9MFY26).

Outlook. We expectNOV/revenue to clock ~41.3/58.3% CAGR over FY26-28e. Over the same period, segment-wise, expecting FD/QC/GO to deliver 19/58.1/30% NOV growth. On revenue front, we expect FD/QC/GO/Hyperpure to report ~19/73.2/30/15% revenue CAGR over FY26-28e. Further we expect adj. EBITDA of Rs35bn/Rs30bn/Rs6bn for FD/QC /others (hyperpure & GO) by FY28 . Risks: Competition in QC might lead to market-share loss, cost escalation, and consumption slowdown.