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Swiggy vs Eternal: Fresh quarterly results from Swiggy and Eternal provide a snapshot of India's quick commerce sector, with investors tracking earnings, expansion plans, management commentary and Citi's outlook on both stocks.
India's quick commerce battle is heating up, with fresh quarterly results from Swiggy and Eternal, Zomato's parent company, offering a snapshot of the sector's current health and providing insights into where the industry's growth trajectory could be headed in the coming quarters.
From revenue growth and expansion plans to management's long-term vision and Citi's stock outlook, here's how the two quick commerce rivals stack up against each other.
Swiggy vs Eternal: Stock Performance
While both stocks have faced pressure in the short term, Eternal has significantly outperformed Swiggy over the longer term. Eternal has delivered returns of 187.33 per cent over the past three years, compared with 87.30 per cent for Swiggy. Over the past year, however, Swiggy has marginally outperformed, gaining 4.57 per cent while Eternal declined 4.71 per cent.
| Period | Eternal | Swiggy |
| 1 Week | -3.81% | -7.84% |
| 1 Month | -8.68% | -13.79% |
| YTD | 10.25% | 10.66% |
| 1 Year | -4.71% | 4.57% |
| 3 Years | 187.33% | 87.30% |
| 5 Years | 127.15% | - |
Swiggy vs Eternal: Q2 Results
The latest quarterly earnings highlight a clear divergence in the financial performance of Eternal and Swiggy. Eternal delivered a stronger-than-expected quarter, with revenue rising 19.4 per cent sequentially to Rs 24,138 crore, EBITDA increasing 26.6 per cent to Rs 752 crore, and net profit growing 36 per cent QoQ to Rs 125 crore. While profit missed some estimates due to higher depreciation costs, the company's overall operating performance remained healthy, supported by margin expansion.
In contrast, Swiggy reported a more challenging quarter. Revenue grew 11.1 per cent QoQ to Rs 7,571 crore, broadly in line with expectations. However, losses widened more than anticipated, with EBITDA loss expanding to Rs 770 crore and net loss widening to Rs 922 crore, reflecting continued investments in growth and expansion.
| Eternal | QoQ (%) | Swiggy | QoQ (%) | |
| Revenue (Rs Crore) | 24,138 | 0.194 | 7,571 | 0.111 |
| EBITDA (Rs Crore) | 752 | 0.266 | Loss of `770 cr | Widened QoQ |
| PAT (Rs Crore) | 125 | 0.36 | Net loss of `922 cr | Widened QoQ |
Blinkit vs Instamart
In its Q2 results, Eternal reported that Blinkit added 308 net new stores, taking its network to 2,751 stores. The company expects to cross 3,500 stores by March 2027.
On the other hand, Instamart added 69 dark stores during the quarter, equal to the cumulative additions of the previous three quarters, bringing the total to 1,240 stores.
| Metric | Eternal (Blinkit) | Swiggy (Instamart) |
| Stores Added in | 308 | 69 |
| Total Store Count | 2,751 | 1,240 |
Swiggy vs Eternal: What management has to say
Eternal's management maintained its long-term expectation of around 20 per cent year-on-year growth for its food delivery business. In quick commerce, the company reiterated its target of delivering 60 per cent CAGR in NOV over the next three years. Management also indicated that, while competition has remained intense over the past year, the worst of the competitive pressure may now be behind the industry.
Swiggy's management, meanwhile, reiterated its 18-20 per cent medium-term GOV growth guidance for the food delivery segment. In quick commerce, the company said adjusted EBITDA losses likely peaked in Q2FY27. However, unlike Eternal, Swiggy expects competitive intensity to remain elevated and does not foresee a meaningful easing of competition in the near term.
| Metric | Eternal | Swiggy |
| Food Delivery Outlook | Maintained ~20% YoY annual growth expectation | Maintained 18-20% medium-term GOV growth guidance |
| Quick Commerce Outlook | Continues to target 60% NOV CAGR over the next three years; currently tracking ahead of plan | Adjusted EBITDA losses peaked in Q2FY27, signalling improving profitability trajectory |
| View on Competition | Competitive intensity has been heavy over the past year but appears to have peaked | Competitive intensity remains high and is unlikely to ease in the near term |
Swiggy vs Eternal: Current and Future Ventures
Swiggy and Eternal (Zomato's parent company) are competing across food delivery and quick commerce, but their current bets are diverging: Eternal is scaling Blinkit aggressively and building AI, while Swiggy is prioritising profitability, supply-chain control, and new value-led food delivery.
| Area | Swiggy | Eternal |
| Food delivery | Core Swiggy app | Zomato |
| Quick commerce | Instamart and private labels such as NOICE and Nectr. | Blinkit |
| Dining/out-of-home | Dineout | Eternal’s District platform |
| New consumer bets | Toing | dark.ai |
Swiggy vs Eternal: Where could they head?
Citi remains constructive on both stocks but sees greater upside potential in Eternal. The brokerage has maintained a BUY rating on both companies, while keeping its target price for Eternal unchanged at Rs 385 and cutting Swiggy's target price to Rs 330 from Rs 390. The targets set by Citi for Eternal and Swiggy reflect upside potential of 26.5 per cent and 2.6 per cent, respectively.
| Metric | Eternal | Swiggy |
| Citi Rating | BUY | BUY |
| Current Market Price (CMP) | Rs 304.45 | Rs 321.60 |
| Target Price | Rs 385 | Rs 330 |
| Implied Upside | 26.50% | 2.60% |
Swiggy vs Eternal: Outlook
Citi's latest targets suggest Eternal offers significantly more upside potential, with the brokerage seeing roughly 26.5 per cent upside from current levels. The brokerage remains bullish on the company, naming it a top pick in the India internet space and raising its store expansion guidance to 3,500 stores by March 2027.
For Swiggy, Citi's target price revision reflects a more cautious stance despite retaining its BUY rating. While the brokerage highlighted solid food delivery growth and margin improvement, it noted slower-than-expected quick commerce growth and higher losses in the segment. As a result, the revised target implies a modest 2.6 per cent upside, indicating that much of the near-term optimism may already be reflected in the stock price.
Swiggy vs Eternal: Brokerage View
Swiggy
| Brokerage | Recommendation | Target Price |
| JM Financial | Reduce | 200 |
| HSBC | Hold | 240 |
| CLSA | Accumulate | 262 |
| Motilal Oswal Financial Services (MOSL) | Buy | 280 |
| Nomura | Buy | 300 |
| Axis Capital | Buy | 309 |
| Kotak Securities | Buy | 310 |
| Emkay | Buy | 310 |
| Citi | Buy | 330 |
| Jefferies | Buy | 330 |
| Bernstein | Outperform | 350 |
| Nuvama | Buy | 403 |
| Macquarie | Underperform | 230 |
| Morgan Stanley | Equal-weight | 263 |
| UBS | Buy | 375 |
| Brokerage Name | Recommendation | Target Price |
| DAM Capital | Buy | 360 |
| Morgan Stanley | Overweight | 417 |
| JPMorgan | Overweight | 420 |
| Jefferies | Buy | 430 |
| CLSA | Buy | 513 |
| Macquarie | Underperform | 225 |
| Nomura | Buy | 350 |
| Bernstein | Outperform | 350 |
| Citi | Buy | 385 |
| UBS | Buy | 390 |
| ICICI Securities | Buy | 425 |
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
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