Kotak retains 'Buy' on Eternal, Swiggy; Blinkit stays best placed in quick commerce

Kotak Institutional Equities keeps 'Buy' on Eternal and Swiggy, citing Blinkit's NOV of Rs 17,277 cr (+88% YoY) outpacing Instamart. Blinkit added ~225 dark stores to ~2,470 and posted adj EBITDA of ~Rs 102 cr, while Instamart still runs a ~Rs 730 cr adj EBITDA loss. Fair values: Eternal Rs 385, Swiggy Rs 370.

— Source publishedWed, 1 Jul, 2026, 12:11 IST·First seen Wed, 1 Jul, 2026, 12:12 IST·Source Entrackr · Newsletter

What happened

Kotak retains 'Buy' on Eternal and Swiggy, expecting a stronger June quarter for Eternal, with Blinkit outpacing Instamart in quick commerce via faster NOV

Key facts

  • Eternal food delivery NOV Rs 10,581 cr (+18% YoY)
  • Blinkit NOV Rs 17,277 cr (+88%)
  • Blinkit ~225 dark stores added, ~2,470 total
  • Blinkit adj EBITDA ~Rs 102 cr
  • food delivery EBITDA margin 5.2%
  • Swiggy GOV Rs 9,703 cr (+20%)
  • Instamart adj EBITDA loss ~Rs 730 cr
  • FV Eternal Rs 385, Swiggy Rs 370

Why this matters

The widening Blinkit-Instamart gap on both growth and profitability strengthens Eternal's bargaining position and raises the strategic cost for Swiggy to close the quick-commerce lead through partnerships or capital deployment.

What to watch

  • Next quarterly Blinkit NOV growth and dark-store count updates
  • Instamart adj EBITDA loss trajectory (narrowing vs widening)
  • Take-rate / AOV trends and platform fee changes across quick commerce
  • Zepto funding rounds or IPO signals
  • Consensus target-price revisions from other sell-side desks
  • Eternal likely to keep guiding aggressive Blinkit store additions and highlight positive adj EBITDA in next earnings
  • Swiggy to emphasize Instamart loss-narrowing roadmap and improving contribution margin to defend valuation
  • Other brokerages likely to align target prices upward on Eternal following Kotak
  • Zepto (private) may accelerate fundraising/expansion to avoid market-share erosion

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