Motilal Oswal Financial Services has maintained its positive stance on internet platform companies Eternal and Swiggy, even as it highlighted a mixed outlook ahead of the March quarter earnings, with strength in food delivery offset by rising pressure in quick commerce.
The brokerage noted that channel checks ahead of the 4QFY26 earnings season indicate a divergent quarter for the two players. The food delivery (FD) segment is expected to remain resilient, with both companies likely to report 18–20% year-on-year growth in gross order value (GOV), supported by a favourable base and limited impact from the recent gas shortage on order volumes so far.
However, the quick commerce (QC) segment is witnessing increasing competitive intensity. Motilal pointed out that aggressive strategies by Zepto — including lower minimum order values and higher discounts — are beginning to weigh on volume growth for both Blinkit (Eternal) and Swiggy Instamart.
As a result, the brokerage has trimmed its near-term growth estimates for both platforms to reflect the slowdown in quick commerce.
Despite these challenges, Motilal Oswal believes that the recent sharp correction in stock prices has made valuations more attractive. Eternal has declined around 32% from its peak, while Swiggy has fallen nearly 50%.
The brokerage maintained its ‘buy’ rating on both stocks, stating that competitive concerns are already priced in. It added that Eternal remains preferred due to its execution track record and Blinkit’s leadership in the category, while Swiggy offers relatively higher upside potential from current levels given its steeper correction.
Even after lowering estimates, Motilal’s revised target prices imply valuations of around 37 times FY28 EV/EBITDA for Blinkit and about 0.4 times FY28 EV/GMV for Swiggy.
Disclaimer: The views and investment tips expressed above are those of the brokerage and do not represent the views of this publication. This article is for informational purposes only and does not constitute investment advice.