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REAL-TIME GLOBAL RESEARCH

Re-ranking the pecking order: India Internet after a reality check in 1H26: India Internet

Published: 2026-06-17Institution: UBS EquitiesPages: 54Original language: EnglishEvidence page: 1

Research evidence excerpt

Re-ranking the pecking order: India Internet after a reality check in 1H26: India Internet

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India Internet Equities

IndiaRe-ranking the pecking order: India Internet

after a reality check in 1H26 Internet Services

Navin Killa

Analyst

navin.killa@ubs.com

Revisiting India Internet pecking order for 2H26 +852-2971 7594

Indian Internet stocks have had a difficult 2026 with stocks down 10-30% YTD on Ajay Raj Choudhary

concerns surrounding weak macro, rising competition and potential disruption from AI. Associate Analyst

Our checks suggest GMV / NOV / billings growth across segments is stabilising after a ajay-raj.choudhary@ubs.com

slowdown in H2FY26, and competition in QC is also showing signs of moderation. We +91-20-3055 5000

retain our preference for Eternal (Buy; PT Rs305) and Meesho (Buy; PT Rs210), and Aditya Chandrasekar

upgrade Info Edge to Buy (PT Rs1,280) following the stock's 25% YTD correction. We Analyst

revisit our estimates and price targets across the universe (Figure 1IndiaInternet:Sumary), with sharp cuts to aditya.chandrasekar@ubs.com

numbers for Swiggy (Buy; PT Rs355 from Rs390 earlier) while others have seen EBITDA +91-22-6155 6056

revisions of less than 10%. Neil John

Associate Analyst

QC and food delivery: Competition moderating, QoQ growth to improve neil.john@ubs.com

Our tracker shows moderation in discounts from Blinkit, Instamart and Zepto in May and +91-22-6155 6000

June vs prior months. While Amazon Now and FMinutes have increased discounts in the

past two months, these are still lower vs peak levels in Q4FY26 and bode well for

margins in Q1FY27. DAU to MAU ratio for Blinkit has improved after declining through

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