Swiggy or Zomato: Which stock could deliver bigger gains? Brokerage report reveals what investors should know this November

India’s fast-growing quick commerce space has once again turned the spotlight on Swiggy and Zomato, with global brokerage Bernstein suggesting that both platforms are well-positioned to benefit from changing consumer habits and expanding urban demand.

In its latest note, Bernstein retained an ‘Outperform’ rating on both companies, assigning a target price of Rs 570 for Swiggy and Rs 390 for Zomato’s parent, Eternal Ltd. The brokerage said that the two companies have reached a stage where food delivery generates steady cash flows, allowing them to channel investments into the next big opportunity — quick commerce.

“Quick commerce is shaping up to be one of India’s fastest-growing internet segments. Both Swiggy and Eternal have the scale, brand recognition, and infrastructure to drive this growth meaningfully,” Bernstein said.

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Q2 earnings show solid momentum

Swiggy’s performance for the July–September quarter reflected steady expansion. The company’s revenue jumped 54 per cent year-on-year to Rs 5,561 crore, while Eternal’s topline surged 2.7 times to Rs 13,590 crore, aided by its Blinkit division and a resilient food delivery business.

Even so, profitability continues to be a concern. Swiggy posted a net loss of Rs 1,092 crore, widening from Rs 626 crore a year earlier. Eternal, on the other hand, reported a 63 per cent drop in profit to Rs 65 crore, as marketing and expansion costs weighed on margins.

Competition heats up

Blinkit continues to maintain a lead in order volumes and network reach, though Swiggy’s Instamart has been closing the gap, especially in metros. Market watchers believe the real battle now lies in execution speed, last-mile efficiency, and brand recall.

Bernstein noted that the winner over the next few years will likely be the player that balances scale and profitability without losing sight of customer experience.

Long-term outlook

Despite near-term cost pressures, analysts remain optimistic about the sector’s trajectory. Both companies have expanded their delivery ecosystems beyond food — into groceries, daily essentials, and even healthcare products.

“Food delivery has evolved into a stable revenue base,” the report added. “Quick commerce is the natural next step — and both Swiggy and Eternal have the ingredients to make it work.”