Bernstein Rates Swiggy & Eternal ‘Outperform’ on India’s $80 Billion Convenience Economy

Global brokerage Bernstein has initiated coverage on Swiggy and Eternal (formerly Zomato) with an ‘Outperform’ rating, highlighting their central role in India’s rapidly expanding Rs 6.7 lakh crore ($80 billion) convenience economy by FY30. With ~20–25 million daily active users each, both companies are seen as structural beneficiaries of rising urban demand from time-poor, affluent consumers. Bernstein projects strong growth in adjacent services—dining, events, B2B logistics—and improved monetisation via ads and private labels. For Swiggy, the focus is on Instamart’s turnaround, with Bernstein expecting it to reach 65% of Blinkit’s gross order value and 30% of its EBITDA by FY30. Recent capital raises and asset sales (Rapido stake) extend its cash runway, with Instamart expected to turn profitable by FY27. Eternal (Zomato + Blinkit) is praised for Blinkit’s leadership in quick commerce and Zomato’s strong cash generation (~₹1,875 crore/year). With over $2 billion in cash, Eternal is well-positioned to reinvest and scale new verticals like District (dining & events). Despite moderating food delivery growth (<20%), Bernstein sees long-term potential in wallet share expansion over user acquisition. It values Eternal at ₹390 and Swiggy at ₹570 for March 2027, implying 23% and 39% upside, respectively. The report underscores that success will hinge on unit economics, dark-store efficiency, and ad monetisation—not just volume growth. As India’s quick commerce race intensifies, Bernstein believes both players are poised to lead the shift toward a convenience-led consumption future.