HSBC Delivers a Price Cut: Zomato and Swiggy Face Heat in Q-Comm Battle

Global brokerage HSBC has updated its views on Zomato and Swiggy, two of India's largest food delivery and quick commerce (Q-Comm) players. HSBC has lowered its target prices for both firms citing intense competition and pricing pressures in the fast-changing Q-Comm space while being conservative on growth estimates.

 

Revised Target Prices:

Challenges in Q-Comm:

 

High competition, especially from e-commerce players such as Amazon and Flipkart, is squeezing margins and growth in the quick commerce segment.

 

Gross Order Value (GOV) growth continues to be a point of interest for investors, but expectations have been brought down to a more realistic 12–15% year-on-year growth rate.

 

Market Reactions

Even after the target cuts, Zomato shares increased more than 3% to ₹218.20, and Swiggy's shares increased 2.3% to ₹347.50 in early trade on April 11, 2025.

 

Profitability Issues:

Industry Outlook:

 

The Q-Comm sector is expected to achieve a $50 billion market size by fiscal 2030, but this is an ambitious goal considering existing market trends.

Both firms are diversifying their revenue streams, with Zomato venturing into entertainment ticketing and Swiggy doubling its bets on its Instamart quick commerce platform.

 

Sources: NDTV Profit, Economic Times, CNBC TV18, Business Upturn