CLSA backs Eternal, DMart and Nykaa; flags Blinkit’s user-growth lead

CLSA rates Eternal, DMart and Nykaa Outperform, citing Blinkit’s expanding user base and dark-store network, DMart’s value-led model and store growth, and Nykaa’s beauty positioning. Swiggy remains Hold amid intensifying quick-commerce competition.

— FiledThu, 27 Aug, 2026, 11:48 IST·First seen Thu, 27 Aug, 2026, 11:48 IST·Source Financial Express · BrandWagon

What happened

CLSA upgraded its outlook on Eternal, DMart and Nykaa, citing Blinkit’s user and dark-store expansion, DMart’s cost-led value model and store growth, and

Key facts

  • CLSA rates Eternal, DMart and Nykaa Outperform
  • Eternal target price Rs 506; 54.5% upside cited, 53.5% in closing table
  • DMart target price Rs 5,723; 46.4% upside
  • Nykaa target price Rs 376; 13.3% upside
  • Swiggy Hold target price Rs 312; 8.7% upside
  • Blinkit weekly active users 57.4 million
  • Instamart weekly active users 11.9 million
  • DMart Ready weekly active users 1.6 million
  • Blinkit added 0.9 million weekly users in latest week; Instamart added 0.2 million
  • Blinkit added 6.2 million weekly active users quarter-to-date versus 4.8 million for all other quick-commerce players combined

Why this matters

The diverging ratings highlight acquisition and partnership value in quick-commerce infrastructure, value retail expansion and differentiated beauty ecosystems, with scale alone insufficient amid intensifying competition.

What to watch

  • Blinkit reporting sustained user/order growth while improving contribution margin despite dark-store additions.
  • Swiggy increasing quick-commerce investment, discounting or dark-store targets beyond expectations.
  • A material acceleration in Blinkit or competitor dark-store openings in top metropolitan clusters.
  • DMart delivering stronger comparable-store sales while maintaining or expanding gross margin.
  • Food inflation, urban consumption data and household downtrading trends that favor DMart's value model.
  • Nykaa showing continued beauty-market share gains and narrowing fashion losses.
  • Regulatory changes affecting gig-worker costs, delivery-platform incentives, dark-store zoning or rapid-delivery operations.
  • Track Blinkit versus Instamart quarterly active users, order growth, gross order value, dark-store additions and contribution-margin trends rather than headline revenue alone.
  • Monitor whether Eternal funds quick-commerce expansion through operating cash generation or requires materially higher investment, which would alter profitability expectations.
  • Assess DMart’s same-store sales growth, new-store pace, gross-margin trend and inventory turns for evidence that value positioning is translating into profitable share gains.
  • Watch Nykaa’s beauty growth, EBITDA margin, customer acquisition costs, repeat-rate indicators and fashion-business losses for confirmation of operating leverage.
  • Compare quick-commerce assortment breadth and pricing with DMart, modern trade and e-grocery platforms; grocery-category migration is the key second-order risk to incumbent retailers.

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