Business
Quick commerce race heats up, Eternal stays ahead while Swiggy plays catch-up
Quick commerce race heats up, Eternal stays ahead while Swiggy plays catch-up
About this update from Eternal Limited
The quick commerce and internet sector continues to evolve, with competition becoming more intense. According to Sachin Dixit, Lead Internet Research Analyst at JM Financial Institutional Securities, a clear performance gap is visible between Eternal and Swiggy. Eternal has stayed ahead due to its strong balance sheet, proven track record, and aggressive expansion in quick commerce. The company has rapidly added dark stores and continues to strengthen its nationwide presence. Its improving unit economics also support its long-term growth story.Swiggy, on the other hand, is slightly behind in this race. While it has approved a fresh fundraise to support expansion, its slower pace of adding dark stores has put it at a disadvantage. However, Sachin believes the market is large enough for multiple players. Swiggy may still succeed as a strong regional player if it uses the new capital wisely and focuses on operational efficiency. The sector has moved through different phases — from rewarding pure growth to demanding profitability. While Eternal has achieved profitability, Swiggy continues to report losses. Still, the market is looking beyond short-term numbers. If companies show steady growth and improving unit economics, investors are likely to stay patient and reward them over the long term. Speaking to CNBC-TV18 on the sidelines of the JM Financial India Xchange 2025 conference, Sachin noted that quick commerce is not a short-term game. He said investors are betting on the sector’s future potential, and consistency in execution will be a key factor in stock performance. In the travel tech space, performance has been mixed. Companies like Ixigo have benefited from strong demand in tier-2 cities, where travel activity is rising rapidly. Yatra has also posted decent results, supported by steady recovery in travel trends. However, seasonality continues to impact the sector. Challenges such as limited aircraft supply, weather disruptions, and operational issues at airlines can affect quarterly performance. Despite this, market leaders like MakeMyTrip remain strong due to their scale and stable business models.