1Q report card: Eternal vs Swiggy: Analyzing KPIs & business drivers

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Internet - India

1Q report card: Eternal vs Swiggy:

Analyzing KPIs & business drivers

Industry Overview

Blinkit extends its lead; Swiggy focuses on scaling

1Q27 highlighted Blinkit's continued outperformance in quick commerce, while food

delivery saw diverging trends amid LPG-led disruptions. In QC, Blinkit delivered NOV

growth of 86% YoY/19% QoQ versus Instamart's 40% YoY/3% QoQ. Swiggy’s QC

growth was slow as mgmt took conscious call to focus on CM breakeven (at the expense

of growth). Blinkit added 200 dark stores QoQ vs 28 for Instamart. Eternal’s mgmt now

sees higher visibility on steady state QC EBITDA margins at 6% (upper end of 5-6%

guide) and see competitive intensity as predictable and increasingly discount led.

Meanwhile Swiggy’s mgmt rather than providing a definitive timeline for adj. EBITDA

breakeven, linked breakeven to achieving materially higher scale, requiring roughly 2.6x

growth in NOV/c.2.2-2.6x growth in orders. Both Eternal & Swiggy saw EPS consensus

cuts post 1Q. Maintain Buy on Eternal (one of our top internet picks) & Neutral on

Swiggy given balanced risk-reward.

QC: Blinkit's scale compounds; Instamart pursues growth

Blinkit's growth continues to be driven by a combination of network expansion, higher

MTU additions & stronger order growth. Blinkit’s MTUs/orders grew 17%/21% QoQ

respectively and were materially ahead of Instamart’s 2% QoQ MTU & 2% order growth.

Blinkit's scale advantage continued to translate into better operating efficiency, with

dark-store throughput at 1,489 orders per day versus 1,089 for Instamart. Blinkit

reported 5.3% CM/0.6% EBITDA margin (on NOV), while Instamart had -0.3% CM/-13%

EBITDA margin. Swiggy achieved CM break-even in May'26 but chose to reinvest in

improving availability and delivery speed, resulting in overall quarterly losses.

FD: Zomato strengthens lead; Swiggy sees softer quarter

Zomato’s Adj. Revenue grew 33% yoy faster than Swiggy’s 19%. FD segment saw a

modest impact in 1Q due to LPG-led disruptions, with the effect more pronounced for

Swiggy. This resulted in a 130bps QoQ decline in adjusted Revenue market share for

Swiggy.…