The new, simplified labour codes are expected to create a small but manageable cost impact for food-tech and quick commerce platforms, and Eternal ( formerly Zomato) could offer nearly 30% upside from current levels, according to Karan Taurani, Executive Vice President at Elara Capital.
Taurani estimated that companies dependent on gig workers may see a 30–50 basis-point hit to Gross Order Value (GOV). "On a per-order basis, this number is around ₹2.5–3," he said. Many platforms already offer medical insurance that costs around 1% of revenue, and the new code could push this towards 2%. The rule allows up to 2% of revenue or 5% of a worker's payout as contribution. Even then, he added, the impact remains contained: "The worst-case impact is not more than ₹2.5–3 on a per-order basis."
He said the combined annual effect for both Eternal and Swiggy works out to roughly ₹250 crore.
Taurani does not expect a meaningful medium- or long-term drag. As revenue expands, he said the cost impact will shrink, and platforms can gradually pass this on to customers. With an average order value of ₹450 for food delivery and ₹600 for quick commerce, the incremental ₹3 is a very small component. This reduces the risk of any hit to demand.
On valuations, Taurani said "the worst seems to be largely over". Zepto’s recent funding round valued the company at 0.6–0.7x market cap-to-GMV, which he sees as a benchmark for the sector.
Using a sum-of-the-parts (SOTP) approach for Eternal, Taurani said that, after adjusting for the food delivery business, cash, and Hyperpure, Blinkit is currently valued at about 0.6x market cap-to-GMV, similar to Zepto. But he argued Blinkit deserves more: "Because Blinkit is better in terms of growth rates, better in terms of scale, better in terms of profitability… we see Blinkit trading at least at a 50% premium."
Since Blinkit accounts for around 60% of Eternal’s SOTP value, a premium would translate to a "straight 30% upside from here on" for the stock, he said.
Taurani noted that the intense discounting seen earlier this year has cooled. He said Eternal, Swiggy and Zepto are now prioritising profitability, especially with Zepto preparing for a possible IPO. He clarified that Swiggy’s recent QIP was aimed at changing its inventory model, not at funding discounts. New players like Amazon and Flipkart, he added, are focused on execution rather than price aggression.
The main risk ahead, in his view, is internal: lower-than-expected throughput per store in newer, non-micro markets.
Taurani also highlighted his preferred picks in the broader food-service segment.
He said Jubilant Foodworks remains a top idea due to steady same-store sales traction, 5–6% long-term growth, and 8–9% store expansion. He expects margin improvement as competitive pressure in the pizza category eases. “The worst seems to be behind us,” he said, noting that rivals are scaling down and becoming less aggressive.
On Restaurant Brands Asia, he maintains a buy rating. The India unit has delivered consistent positive SSG and healthy store growth. The key concern is low margins due to price wars. With stronger growth and operating leverage, margins could improve. The bigger swing factor, he said, will be the Indonesia business, which has been loss-making but is scaling down. A break-even or potential exit could help re-rate the stock.