The highly-anticipated Zepto IPO's unexpected delay may be spelling gains for listed rivals Swiggy Ltd. and Zomato-parent Eternal Ltd. The buffer came as the IPO failed to attract large mutual funds, sources told NDTV Profit.
Eternal's stock has climbed nearly 15% in July, while Swiggy surged 23.63%. Both companies posted a mixed set of June quarter results.
Zomato parent's net profit for the first quarter of financial year 2027 nearly quadrupled to Rs 92 crore year-on-year, from Rs 92 Rs 25 crore in the year-ago period.
Swiggy, on the other hand, could not swing to profit this quarter, though the net losses narrowed to Rs 791 crore compared from a loss of Rs 1,197 crore in the -year ago period.
Eternal continues to hold a commanding lead over Swiggy across India's food delivery and quick commerce businesses, but the competitive gap is beginning to narrow in profitability, according to a new comparative study by Jefferies.
On the revenue front, both performed strongly with Eternal's topline jumping to Rs 20,211 crore from the previous fiscal's Rs 7,167 crore, exceeding analysts' estimates of Rs 20,058 crore.
Swiggy posted a 37.3%surge in revenue from operations to Rs 6,812 crore from Rs 4,961 crore in the corresponding period of last financial year. Operationally, Swiggy's ebitda loss narrowed, while Eternal's margins expanded.
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Should You Buy, Sell, Or Hold?
Analysts tracking the companies on Bloomberg remain largely bullish on the stocks. Out of 34 analysts, 31 suggest buying eternal's stock and have a buy or equivalent rating for it. Only three analysts have a sell call on the shares.
Swiggy's stock has 30 analysts tracking it, out of these 21 suggest buying shares, six advise holding them, while three have a sell call on the stock.
Shares At Close
Swiggy's stock settled 3.9% lower at Rs 284.70, while Eternal closed 2.6% lower at Rs 302.65 on the last trading day of July on the NSE. This compared to a 0.27% advance in the Nifty index on Friday.
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