Swiggy vs Zomato Stock: As India’s food delivery market continues to expand, the rivalry between Swiggy and Zomato (Eternal) remains under intense investor scrutiny. Recent platform fee hikes by both companies have further sharpened the focus on profitability and long-term sustainability.
HDFC Securities maintains a bullish stance on both players, highlighting strong growth visibility, improving unit economics, and expanding opportunities across food delivery and quick commerce.
Swiggy: Strong Upside Despite Recent Correction
HDFC Securities maintains a bullish outlook on Swiggy, reiterating a BUY rating with a target price of Rs 460, implying a potential upside of over 70 per cent.
The brokerage believes the recent 37 per cent correction in the stock over the past six months offers an attractive entry point. It values Swiggy at around 32x FY28 EV/EBITDA and expects the food delivery market to grow at approximately 17 per cent, with margins stabilising near 3 per cent.
Importantly, recent platform fee hikes of 17–19 per cent are expected to support profitability going forward.
The brokerage also highlights that Instamart is on track to achieve contribution margin breakeven by Q1 FY27, while adjusted EBITDA losses are likely to narrow to nearly Rs 4.2 billion by FY28. A strong cash position further strengthens Swiggy’s ability to execute and invest for growth.
Zomato (Eternal): Profitability Momentum Strengthens
On Zomato (Eternal), HDFC Securities has upgraded the stock to BUY with a target price of Rs 340, indicating an upside of 42.5 per cent.
Shares of Eternal (Zomato) Ltd rose 4.26 per cent to Rs 238.80 as of 10:45 am, gaining Rs 9.75 on the BSE.
The brokerage points to strong operating momentum, with MTU, order volumes, and NOV growing at 20 per cent, 24 per cent, and 18 per cent YoY, respectively.
Profitability is improving, aided by platform fee hikes and operating leverage, it says.
Blinkit continues to scale rapidly, delivering about 10 per cent QoQ NOV growth and moving closer to breakeven, with plans to add around 250 dark stores. While execution gaps in quick commerce versus peers remain a watch point, the brokerage notes that losses in the going-out segment have likely peaked.
Overall, Zomato’s valuation remains attractive, supported by multiple growth levers and improving earnings visibility.
Swiggy Vs Zomato: Platform Fee Hikes
Zomato increased its platform fee by 19.2 per cent, while Swiggy followed with a 17 per cent hike.
| Aspect | Zomato | Swiggy |
| Old Fee | Rs 12.5 | Rs 14.99 |
| New Fee | Rs 14.9 | Rs 17.58 |
| % Increase | 19.2% | 17% |
Q3 Results Comparison
| Metric | Swiggy (Q3 FY26) | Zomato (Eternal) (Q3 FY26) |
| Net Profit / Loss | Loss: Rs 1,065 crore (+33% YoY) | Profit: Rs 102 crore (+73% YoY) |
| Revenue | Rs 6,148 crore (↑54% YoY) | Rs 16,315 crore (↑202% YoY) |
| Sequential Trend | Loss narrowed QoQ | Revenue rising QoQ |
| Key Driver | Instamart growth | Blinkit + core delivery |
| Profitability Status | Still loss-making | Profitable |
Bottom Line
The Indian food delivery and quick commerce space remains a high-growth sector, with both Swiggy and Zomato strengthening their monetisation strategies.
Swiggy offers higher upside potential but comes with execution and profitability risks. While Zomato (Eternal) stands out for its strong revenue growth and improving profitability, making it the more stable play currently.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
