Eternal, Swiggy in Focus: Up to 116% upside on Eternal, 44% on Swiggy—brokerages flag margin pressure

Zomato, Swiggy Share Price: Shares of Eternal Ltd and Swiggy are back in focus ahead of March quarter results. The broad view on the Street is simple—growth is solid, but profitability is still catching up.

With both companies doubling down on quick commerce, analysts expect strong top-line numbers but continued pressure on margins.

Eternal: Strong growth, steady improvement in margins

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For Eternal, most brokerages are fairly optimistic. Food delivery is expected to grow at a steady pace, with net order value (NOV) likely rising around 17–18 per cent year-on-year. Blinkit continues to be the big driver, with some estimates suggesting nearly 100 per cent growth compared to last year.

Margins are expected to improve slightly. Better platform fees, higher restaurant commissions and ad income are helping push profitability upward, but it’s still a gradual process.

Brokerages tweak targets on Eternal

Global brokerages remain positive, but there have been slight adjustments.

CLSA has maintained a Buy rating on Eternal but trimmed its target price slightly to Rs 501 from Rs 506. UBS has also maintained a Buy, cutting its target to Rs 310 from Rs 375.

The message here isn’t negative—it’s more about factoring in near-term margin pressure despite strong long-term growth.

Swiggy: Growth intact, but quick commerce still heavy

Swiggy’s core food delivery business is also expected to show steady growth, with better pricing and higher take rates supporting revenues.

But like Eternal, the pressure point remains quick commerce—Instamart in this case. Growth is strong, but losses are still high because the company continues to invest aggressively to stay competitive. So while revenues look healthy, profitability is still some distance away.

Brokerages turn slightly more positive on Swiggy

Interestingly, there’s a bit more action on Swiggy from brokerages.

CLSA has upgraded Swiggy to Accumulate from Hold and raised its target price to Rs 357 from Rs 335. UBS has maintained a Buy but cut its target to Rs 390 from Rs 510.

So while there’s optimism, the cuts show that near-term profitability is still a concern.

Both raising fees to protect margins

One common move this quarter—both companies have increased platform fees by around 17–19 per cent. It’s a clear signal: they’re trying to protect margins without slowing growth. Whether customers absorb these hikes comfortably is something analysts will keep watching.

Stock performance tells the story

On the market side, the difference is visible. Swiggy shares, around Rs 269.50 on the National Stock Exchange, have been under pressure—down over 30 per cent this year.

Eternal, on the other hand, has held up relatively better, suggesting investors are slightly more confident about its execution, especially with Blinkit scaling up.

What’s the takeaway?

Nothing has really changed in the bigger picture. Both companies are growing fast. Demand is there. But profitability—especially in quick commerce—is still the big question.

That’s exactly what the upcoming results will be judged on: not just how fast they’re growing, but how efficiently they’re doing it.