A six-month slump for a former multibagger: What is going on with Eternal?

Eternal, once a standout performer on Dalal Street, has recently faced a significant downturn, with its stock price declining nearly 20% over the past six months. After peaking at Rs 368.45 in October 2025, the stock has now settled in the Rs 250-255 range, lagging behind broader market trends. The primary factors contributing to this decline include heightened competition in the food delivery and quick commerce sectors, which has pressured industry margins as rivals ramp up investments to secure market share. Despite Blinkit, a part of Eternal, achieving adjusted EBITDA breakeven in Q3FY26, investor confidence remains shaky, particularly regarding the sustainability of its profitability amidst these competitive pressures. Additionally, the stock's once-high valuations have come under scrutiny, especially as market sentiment shifts. The departure of founder Deepinder Goyal from his CEO role, transitioning to a non-executive position, has further fueled investor anxiety about the company's future direction. While some analysts suggest that the current decline is largely sentiment-driven rather than indicative of deep structural issues, the combination of aggressive competition, valuation corrections, and leadership changes has created a challenging environment for Eternal as it seeks to navigate its next phase of growth.