Food delivery shares in focus; Eternal, Swiggy rally up to 11% in 2 days

Shares of Eternal (formerly known as Zomato) and Swiggy rallied up to 6 per cent on the BSE in Thursday's intra-day deal, and traded higher for the second straight day.

Eternal, Swiggy's share price movement 

 

Shares of online food-delivery cum quick-commerce-space – Eternal (formerly known as Zomato) and Swiggy rallied up to 6 per cent on the BSE in Thursday’s intra-day trade. These stocks were trading higher for the second straight day, surging up to 11 per cent on the bourses.

 

Among individual stocks, Eternal was up 6 per cent at ₹259.10 on the BSE in intra-day trade today. In the past two trading days, the stock gained 9 per cent. Till 11:01 AM; a combined 57.63 million equity shares changed hands on the NSE and BSE.

 

Shares of Swiggy were up 2 per cent at ₹370 in intra-day deal, and have rallied 11 per cent in the past two trading days. The stock has bounced back 25 per cent from its 52-week low of ₹297 touched on May 13, 2025. However, thus far in the calendar year 2025, Swiggy has underperformed the market by falling 32 per cent, as compared to 3.6 per cent rise in the BSE Sensex. 

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Brokerages view on Eternal

 

Analysts at ICICI Securities said Eternal’s adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) profitability came in above their estimates, due to a combination of better mix; limiting expansion to new cities; and sustained improvement in ad revenues. However, management has cautioned about rising competition from non-quick commerce (QC) channels. It has also started reporting net order value (NOV) (gross order value (GOV)-discounts) to improve transparency on pricing power. In food delivery, management clarified that growth pangs were not indicative of a structural issue. The brokerage firm believes QC margin is likely to improve from June 2025 quarter (Q1FY26E).

 

Management's target of reaching a 2,000 store-count by December 2025 will keep the loss momentum sustained in the near term. Eternal is focused on growing its market share, especially in the face of heightened competition, and to prioritize growth over profitability in the short term. Analysts at Emkay Global Financial Services expect the stock price to remain range-bound in the near term due to heightened competitive intensity in QC and planned investments in Going-out (to scale it up).

 

Slower GOV growth for Zomato and losses at Blinkit dragged Q4 earnings. Expect Blinkit to maintain industry-leading show on user growth and GOV. But higher fixed costs may continue to drag adjusted Ebitda. Analysts at Elara Capital expect a long haul for new quick-commerce entrants. Expect Eternal to maintain its market leadership in both the segments.

 

Brokerage view on Swiggy

 

Analysts at JM Financial Institutional Securities continue to value Swiggy’s food delivery business at 45x EV/ FY27E Adj. Ebitda multiple. The brokerage firm in Q4 result update said that they now value Instamart at 0.5x EV/ FY27E GOV multiple versus 1.0x earlier due to substantial margin profile deterioration amidst high competitive pressures. 

 

Other businesseses, now use 1x EV/GOV FY27E multiple (from 0.9x earlier) for out-of-home consumption as it has turned profitable while continuing to use 0.5x EV/Sales multiple for supply chain and distribution. Accordingly, the brokerage firm said their revised SOTP based March 2026 target price works out to ₹450 vs. ₹500 earlier. The market seems to accord value to only its food delivery business, whereas Instamart and other businesses are not getting any meaningful value.

 

About Eternal, Swiggy

 

Eternal is one of the first home-grown newage tech companies listed in India, with a mission to power India’s changing lifestyles. The company operates through four key business segments i.e. food delivery, quick commerce, going-out and B2B Supplies (Hyperpure).

 

Swiggy is India’s pioneering on-demand convenience platform, catering to millions of consumers each month. With an extensive footprint in food delivery, Swiggy Food collaborates with over 2.5 lakh restaurants across ~700 cities. Swiggy Instamart, its quick commerce platform operating in 120+ cities, delivers groceries and other essentials across 20+ categories in 10 minutes. 

 

Fueled by a commitment to innovation, Swiggy continually incubates and integrates new services like Swiggy Dineout and Swiggy Scenes into its multi-service app. Leveraging cutting-edge technology and Swiggy One, the country’s only membership program offering benefits across food, quick commerce, dining out, and pick-up and drop services, Swiggy aims to provide a superior experience to its users.