Eternal on a tear
Shares of Eternal climbed as much as 1.7% on Thursday to a 52-week high of Rs 347.50 on the BSE. The stock has gained nearly 25% in 2025 and is up around 6% over the past month.
Citi maintained its ‘buy’ rating on Zomato, revising the target price to Rs 395 per share from Rs 320. The brokerage noted that “Blinkit growth momentum remains stellar,” and expects FY26 and FY27 quick-commerce gross order value (GOV) to grow 123% and 57% year-on-year, respectively.
The brokerage said Zomato’s adjusted EBITDA margin is expected to break even in the third quarter of FY26, with further expansion to 1.9% and 3.0% of GOV in FY27 and FY28. For its core food delivery business, the brokerage expects GOV growth of 18% year-on-year in the second quarter, up from 16% in the first, with margins of 4.3% and 4.5% in FY26 and FY27.
Technically, the stock shows strong bullish undertones, trading above all eight key simple moving averages, from the 5-day to 200-day. Its Relative Strength Index (RSI) stands at 64.2, suggesting it’s neither overbought nor oversold. The Moving Average Convergence Divergence (MACD) is at 4.4, above the centre line but below the signal line.
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Swiggy’s rebound gathers steam
Swiggy shares rose as much as 3.6% to Rs 435.95 on the BSE, even as the stock remains down nearly 20% for the year. The rally came after Citi reaffirmed its ‘buy’ rating and lifted the target price to Rs 495 from Rs 465.Citi pointed to robust growth across both business verticals. For food delivery, GOV rose 19% year-on-year while revenue jumped 21%, with contribution margins improving to 7.6% and adjusted EBITDA margins to 2.8%. Quick-commerce GOV surged 23% quarter-on-quarter and 106% year-on-year, while revenue climbed 26% QoQ and 111% YoY, with margins improving to -2.9% and -12.3%, respectively.Overall revenue was up 64% year-on-year, with adjusted EBITDA losses narrowing to Rs 2,760 crore. Free cash burn improved to Rs 950 crore. Citi also highlighted that Swiggy’s cash balance stood at about Rs 76,800 crore after its stake sale in Rapido, and that its quick-commerce unit is “nearing breakeven in one to three quarters.” The brokerage raised Swiggy’s quick-commerce target multiple to 1.0x EV/GOV from 0.9x.
From a technical perspective, Swiggy shares are trading above all major moving averages, signalling strength despite a challenging year. Its RSI of 47.4 suggests a neutral zone, while the MACD remains below both the centre line and the signal line, a bearish indicator suggesting the rally may face resistance.
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The bigger picture
Both food-delivery majors are showing strong top-line growth, supported by Citi’s upbeat view on their quick-commerce segments and improving margin outlooks. With both Eternal and Swiggy trading above key moving averages, investors will be watching upcoming quarters for how quickly their quick-commerce businesses move toward breakeven.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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