The share price of Eternal (formerly Zomato) recovered slightly on Friday after the sharp sell-off on October 23. Ambit Capital reiterated its ‘Sell’ rating. The brokerage warned that high cash burn and heavy marketing spends continue to weigh on profitability even as Blinkit’s growth surged 137 per cent year-on-year.

Ambit’s October 20, 2025, report, titled “High cost of growth despite benign competition,” said Eternal has now logged its fifth straight quarter of below-consensus adjusted EBITDA, hurt by slower food-delivery recovery, persistent losses in Going-Out and Others, and cash burn of Rs 1,100 crore (INR 11 billion) in 1HFY26.

Ambit keeps ‘Sell’ amid cash burn

Ambit said food-delivery margins improved due to a 70-bps rise in take rate to a record 21.7 per cent, but gains were

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