Blinkit Powers $ETERNAL Ahead of $SWIGGY ”

Over the past month, $ETERNAL has rebounded ~5%, trimming its YTD decline to ~5%. In contrast, $SWIGGY remains under pressure, down 38% YTD and 7% in the past month. Scale & Execution Advantage: Eternal’s lead stems from superior quick‑commerce execution via Blinkit, which posted 95% YoY NoV growth to ₹14,386 crore in Q4. Swiggy’s Instamart grew 60.3% YoY to ₹5,675 crore, but lags in scale and profitability. Blinkit’s Strengths: Analysts highlight Blinkit’s market leadership, dark‑store productivity, supply chain efficiency, and proven profitability path. Expansion into categories like electronics and jewellery adds growth levers, though competition from Amazon, Flipkart, and Zepto remains intense. Instamart’s Challenges & Positives: Swiggy’s Instamart is focusing on sustainable unit economics, private label traction (Noice), and aims for contribution‑margin break‑even by Q1FY27. However, balancing profitability with expansion amid well‑funded rivals is a key challenge. Brokerage Views: JM Financial expects Q1FY27 to reinforce Blinkit’s outperformance over Instamart. Bloomberg data shows Eternal with 31 buy calls vs. 3 sells, while Swiggy has 23 buys, 4 holds, and 3 sells. Analysts see Blinkit’s sequential NoV growth in low‑ to mid‑double digits, versus Instamart’s 3–5% q‑o‑q growth. Valuation & Sector Outlook: Eternal’s Blinkit turned profitable two quarters ago, while Instamart is yet to. Food‑delivery businesses of both Swiggy and Zomato are expected to grow 18–20% with margin expansion. On valuations, Zomato trades at 2.3x NoV vs. 1x for Swiggy, reflecting stronger profitability visibility.