Eternal vs Swiggy: Growth vs Profitability—Which Stock Emerges a Winner After Q4?

Image Source: CNBC TV18

India's leading food delivery behemoths, Eternal (ex-Zomato) and Swiggy, have posted their Q4 FY25 results, showing a robust growth path but flaccid profitability. Both players are expanding their quick commerce businesses aggressively, but escalating costs have taken a toll on their bottom lines.

Major Highlights of the Q4 Results:

Revenue Growth:

Eternal: ₹5,833 crore (+64% YoY)
Swiggy: ₹4,410 crore (+44.8% YoY)

Profitability:

Eternal: ₹39 crore profit (-78% YoY)
Swiggy: ₹1,081 crore loss (widen from ₹555 crore YoY)

Quick Commerce Expansion:

Eternal's Blinkit: 134% YoY growth, 94.2 billion GOV
Swiggy's Instamart: 101% YoY growth, 46.7 billion GOV

Store Additions:

Eternal: 294 new stores, total 1,301 stores
Swiggy: 316 new stores, total dark store count materially up

Market Sentiment:

Analysts prefer Eternal on account of strong Blinkit positioning.
Swiggy's losses concern on cash burn and profitability timelines.
Target Prices: Eternal at ₹280, Swiggy at ₹350 (cut from ₹385).

What's Next?

Both the companies are doubling down on instant commerce, yet profitability continues to elude them. Blinkit by Eternal is expanding at a higher rate, while Instamart by Swiggy incurs greater losses. Investors have to balance growth prospects against financial health before taking a call.

Sources: Mint, MSN, Business Today, Upstox