Motilal Oswal Upgrades Swiggy, Reaffirms Buy on Eternal as Quick Commerce Outlook Brightens

Overview

• Swiggy was upgraded to Buy with a target price of Rs 560, implying roughly 32% upside, while Eternal (Zomato) was retained at Buy with a Rs 420 target for about 29% upside.
• The brokerage raised its food-delivery growth forecasts for both platforms to 21–23% for FY26–27, up from 19–20% earlier.
• It increased the valuation multiple for food-delivery units to 35x FY27E adjusted EBITDA to reflect stronger growth and improved profitability visibility.
• Profitability timelines for Instamart and Blinkit were brought forward, citing easing discount intensity, moderated dark-store expansion, and lower customer-acquisition costs, with contribution margins expected to recover.
• Shares moved higher following the note, though the outlook depends on sustained competitive restraint, measured network growth, and the follow-through of policy and seasonal demand tailwinds.