The food delivery and the quick commerce space is seeing some interesting price action. The rally in Eternal share price continues. It has jumped 6% in the last 5 sessions. The Swiggy share price, in contrast, has fallen 5% in the same time. Motilal Oswal highlighted that while food delivery business sizzles with 20% growth, the quick commerce space remains stormy.
The brokerage firm maintained ‘Buy’ on both names but cut target price as “competitive concerns are real but priced in, in our view.” They prefer Eternal “for its execution track record and Blinkit’s category leadership,” though they “believe Swiggy offers greater upside from the current levels given the steeper discount. “
Let’s take a look at the detailed investment rationale driving the two counters –
Eternal vs Swiggy: A mixed quarter ahead
According to the Motilal Oswal report, the upcoming quarter could show a mixed trend for both companies. While the core food delivery business remains stable, the quick commerce segment is facing pressure.
“Our channel checks ahead of the 4QFY26 earnings season suggest a divergent quarter for the two listed internet platforms, Eternal (Zomato) and Swiggy,” the report said.
“Food delivery (FD) should post an improved quarter, with both players likely to report 18-20% YoY growth in gross order value (GOV),” according to the brokerage report.
However, pressure is building in quick commerce. “Competitive intensity, particularly from Zepto, which continues to operate at lower minimum order values and higher discounts, is beginning to weigh on volume growth.”
Eternal vs Swiggy: Food delivery remains the backbone
Eternal’s food delivery business continues to act as a strong base for the company. Motial Oswal noted, “We expect both Eternal and Swiggy to report GOV growth of 20-21% YoY in Q4FY26E.”
The company has also benefited from higher platform fees, which are helping improve margins and support its quick commerce expansion.
For Swiggy as well, food delivery remains the key revenue generator. The brokerage highlighted, “The more interesting development is the persistent hike in platform fees, now at around Rs 14.9 (excl. GST) per order for both Eternal and Swiggy.”
Eternal vs Swiggy: Quick commerce slowdown raises concerns
Eternal’s quick commerce platform, Blinkit, is seeing a slowdown in growth compared to earlier quarters. “The standout datapoint this quarter is the continued deceleration in QC volume metrics,” the Motilal Oswal report noted.
Swiggy’s Instamart is facing similar challenges. The brokerage has cut growth estimates, stating, “We now expect NOV CAGR of 42%/36% for Blinkit/Instamart over FY26-28 vs. 51%/38% earlier.”
Eternal vs Swiggy: Valuations turn attractive after correction
The stock has corrected significantly from its peak levels. “Eternal is down 32% from the peak, creating what we view as an attractive entry point for medium-term investors,” according to the brokerage report.
Swiggy has seen an even sharper fall. “Swiggy is down 50% from the peak,” the report noted.
Conclusion
The brokerage has shown a slight preference for Eternal. “We prefer Eternal for its execution track record and Blinkit’s category leadership,” according to the report.
At the same time, Swiggy offers a different appeal. “We believe Swiggy offers greater upside from the current levels given the steeper discount.”
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.