Swiggy and Eternal (formerly Zomato) reported strong revenue growth in Q4FY25 but struggled with profitability due to rising expenses in quick commerce. Eternal’s profit fell 78% to ₹31 crore, while Swiggy’s losses widened to ₹1,081 crore.
Both companies aggressively expanded their store networks—Eternal added 294 stores, bringing its total to 1,301, while Swiggy added 316 stores, surpassing its previous eight quarters combined. Despite this, Swiggy’s Instamart posted weaker-than-expected growth, while Eternal’s Blinkit outpaced it with 134% YoY growth.
Analysts remain cautious about rising competition and weak profitability guidance. Eternal received a slight edge over Swiggy, with domestic brokerage JM Financial maintaining a ‘Buy’ rating and an unchanged target price of ₹280 per share. Swiggy’s outlook remains uncertain as it continues to burn cash in expansion efforts.
While both companies are betting big on quick commerce, Eternal’s stronger positioning in Blinkit gives it an advantage. Investors must weigh growth potential against profitability concerns before making a decision.
