Shares of Eternal and Swiggy rallied on Monday as investor interest in the quick commerce sector intensified. The move follows strong trading volumes and projections of rapid growth in the digital retail market through 2030.
Detailed Coverage
Eternal and Swiggy, two major players in India's food delivery and quick commerce sectors, witnessed significant stock price gains on Monday. Eternal shares climbed 6 percent to reach ₹295.70, with trading volume reaching 23.55 million shares across the NSE and BSE. Similarly, Swiggy shares rose 5 percent to ₹264.45, with trading volumes more than doubling compared to the daily average.
Quick Commerce Market Trends
The market for quick commerce—platforms that deliver groceries and household items in minutes—has grown substantially in recent years. Data indicates the sector expanded from approximately ₹400 crore in FY20 to an estimated ₹52,700 crore in FY25. Industry reports suggest this segment is positioned to capture a larger share of India’s online retail market, with projections estimating a market size between ₹4.5 trillion and ₹6.02 trillion by FY30.
This growth is driven by changing consumer habits, where convenience has become a primary factor in purchasing decisions. While the opportunity for expansion is noted, investors should consider the competitive nature of this industry. Companies are currently investing heavily in infrastructure and delivery networks to secure market share, which can lead to higher operational costs.
Financial and Brokerage Context
Recent financial updates have drawn attention to the profitability pathways for these platforms. Following its Q1 results, Eternal has seen positive commentary from various brokerages. Motilal Oswal Financial Services has maintained a favorable outlook on the stock, noting that while competition remains high, Eternal’s food delivery business remains stable. The brokerage firm highlighted the potential for the Blinkit quick commerce vertical, projecting net order value growth of over 60 percent and a target of $1 billion in EBITDA by FY29.
JM Financial Institutional Securities also updated its forecasts, noting that while net order value estimates for Blinkit have increased, there are factors that may impact near-term profitability. These include rising expansion costs and the impact of minimum wage adjustments on delivery operations. For investors, the balance between aggressive growth and the ability to maintain or improve profit margins will be a crucial element to monitor in future quarterly reports. The long-term performance of these stocks will depend on how effectively these companies manage their expansion spending while navigating potential cost pressures.