Internet - India: 1Q preview: Stable quarter despite ME war headwinds; room for positive surprises

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Internet - India: 1Q preview: Stable quarter despite ME war headwinds; room for positive surprises

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Internet - India

1Q preview: Stable quarter despite ME war

headwinds; room for positive surprises

Estimate Change

Meesho has room to surprise, Delhivery/PB margins soft 01 July 2026

We expect most India internet companies to report steady numbers with growth & Equity

margins holding well despite fuel price increase, increase in minimal wages in 4 states & India

annual wage hike (for most). In 1Q, 1) we believe Meesho could positively surprise on Internet

growth & margins; 2) Delhivery’s margins may disappoint due to timing on fuel price Sachin Salgaonkar >>

pass though (likely to reverse in 2Q); 3) Even PB Fintech margins are likely to be soft Research Analyst

qoq due to seasonality but up yoy; 4) For Eternal, despite high competition in QC we BofAS+91 22India6632 8667

expect to show strong qoq NOV & margin improvement. We tweak our estimates for sachin.salgaonkar@bofa.com

Meesho, Paytm & PB Fintech (refer Exhibit 11) but keep POs unchanged. Reit. Buy on Pankaj Mehendiratta >>

Research Analyst

MMYT, Eternal, Delhivery & Paytm given favorable risk-reward. BofAS India

+91 22 6632 8684

Preview details: Steady momentum for most companies pankaj.mehendiratta@bofa.com

Kaushik Gurumurthy, CFA >>

Eternal & Swiggy: We expect divergent trends in QC to continue – we est. Eternal to Research Analyst

show 17% qoq NOV growth led by store additions/normal seasonality and Swiggy to BofAS India

+91 22 6632 8357

show 4% qoq growth given its focus to achieve CM breakeven (partly coming at expense kaushik.gurumurthy@bofa.com

of its growth). We est. Eternal’s QC EBITDA margin to improve to 0.4% (4Q: 0.3%) &

Swiggy to show -12.8% margin (4Q: -15.1%).