Eternal, Swiggy, Nykaa: E-commerce shares tank after new labour laws; impact & details
Shares of E-commerce companies including Eternal, Swiggy, Delhivery, Nykaa, Urban Company and others were seen under pressure on Monday after the Government announced new labour laws.
- Nov 24, 2025,
- Updated Nov 24, 2025 9:40 AM IST
Shares of E-commerce companies including Eternal, Swiggy, Delhivery, FSN ECommerce Ventures (Nykaa), Urban Company and others were under pressure on Monday after the Government announced new labour laws last week. Market participants are expecting the cost to rise for these labour intensive companies.
The Government of India has announced the implementation of the Code on Social Security 2020 (CoSS) with effect from 21st November 2025. The CoSS mandates social security coverage for all workers including gig and platform workers. However, market participants foresee a limited rise in their cost in the long-run.
While the exact details on how the CoSS will be implemented are yet to be notified, online services aggregators will have to contribute 1-2 per cent of their annual turnover to a dedicated fund to enable the coverage, which will be capped at 5 per cent of the amount payable to the workers.
Following the announcement, shares of Eternal dropped more than 2 per cent to Rs 295.80 on Monday, against its previous close at Rs 302.05. Its arch rival Swiggy also tumbled nearly 2 per cent to Rs 378.05 in the early trade, compared to its previous close at Rs 385.65 in the previous session.
Delhivery also tumbled over 1.8 per cent to Rs 410.40 during the session, while Nykaa was also down 1.7 per cent to Rs 263.95 for the day. Recently listed Urban Company slipped more than 1.6 per cent to Rs 140.55 at the opening tick. The stock has cracked nearly 33 per cent from its post listing highs at Rs 201.
"We estimate that in the worst-case scenario the amount payable by hyperlocal delivery companies under our coverage, including Eternal and Swiggy, would be Rs 2.1-2.5 per order in their respective food delivery and quick commerce businesses," said JM Financial. It has a 'buy' rating on Eternal with a target price of Rs 450, while an 'add' rating on Swiggy with a target price of Rs 460.
At a consolidated level, Eternal and Swiggy would have to contribute Rs 430 crore and Rs 260 crore, respectively, towards the fund, basis FY26E, it added. "We strongly believe both companies would eventually pass on the additional burden to their end customers. From a customer view, we do not expect any material impact on ordering behaviour, based on recent absorption of other fees.
Bernstein said that the new labour code may reduce Swiggy & Eternal Ebitda by 25-70 basis points (bps) and quick commerce margins are more exposed than food delivery. Rider and warehouse costs remain the largest variable expense per order, while existing insurance and benefits may offset part of the regulatory impact.
Swiggy's food delivery is already unit-profit at (Rs 13 per order) and Blinkit/Eternal has higher revenue per order but also higher delivery costs, it noted, adding increased cost be shared across ecosystem partners and the industry may adjust pricing or fees to absorb incremental cost. Bernstein has an 'outperform' rating on both Swiggy and Eternal.
Elara Capital maintains its 'buy' rating on Eternal with a target price of Rs 415, while 'accumulate' rating on Swiggy with a target price of Rs 490, despite near-term cost risks. Expected cost pass-through to consumers may slow demand in the short-term, it said. Elara notes that both companies already offer insurance (1 per cent of revenue), partly offsetting the new requirement.
New labour codes may increase gig worker costs and weigh on near-term sentiment as four labour codes define gig work and require 1-2 per cent aggregator contributions, said Morgan Stanley. It believes that the platform firms may face added costs Of `1.5-2.5 per order in food delivery and quick commerce.
Ebitda impact estimated at 4-10 per cent across major platform sectors Costs may be shared across stakeholders, easing pressure on platforms. New law seeks to formalise employment and expand social security for all worker types, it added. "Platforms may pass on the incremental costs to customers, merchants or workers over time, limiting the long-term pressure."
Shares of E-commerce companies including Eternal, Swiggy, Delhivery, FSN ECommerce Ventures (Nykaa), Urban Company and others were under pressure on Monday after the Government announced new labour laws last week. Market participants are expecting the cost to rise for these labour intensive companies.
The Government of India has announced the implementation of the Code on Social Security 2020 (CoSS) with effect from 21st November 2025. The CoSS mandates social security coverage for all workers including gig and platform workers. However, market participants foresee a limited rise in their cost in the long-run.
While the exact details on how the CoSS will be implemented are yet to be notified, online services aggregators will have to contribute 1-2 per cent of their annual turnover to a dedicated fund to enable the coverage, which will be capped at 5 per cent of the amount payable to the workers.
Following the announcement, shares of Eternal dropped more than 2 per cent to Rs 295.80 on Monday, against its previous close at Rs 302.05. Its arch rival Swiggy also tumbled nearly 2 per cent to Rs 378.05 in the early trade, compared to its previous close at Rs 385.65 in the previous session.
Delhivery also tumbled over 1.8 per cent to Rs 410.40 during the session, while Nykaa was also down 1.7 per cent to Rs 263.95 for the day. Recently listed Urban Company slipped more than 1.6 per cent to Rs 140.55 at the opening tick. The stock has cracked nearly 33 per cent from its post listing highs at Rs 201.
"We estimate that in the worst-case scenario the amount payable by hyperlocal delivery companies under our coverage, including Eternal and Swiggy, would be Rs 2.1-2.5 per order in their respective food delivery and quick commerce businesses," said JM Financial. It has a 'buy' rating on Eternal with a target price of Rs 450, while an 'add' rating on Swiggy with a target price of Rs 460.
At a consolidated level, Eternal and Swiggy would have to contribute Rs 430 crore and Rs 260 crore, respectively, towards the fund, basis FY26E, it added. "We strongly believe both companies would eventually pass on the additional burden to their end customers. From a customer view, we do not expect any material impact on ordering behaviour, based on recent absorption of other fees.
Bernstein said that the new labour code may reduce Swiggy & Eternal Ebitda by 25-70 basis points (bps) and quick commerce margins are more exposed than food delivery. Rider and warehouse costs remain the largest variable expense per order, while existing insurance and benefits may offset part of the regulatory impact.
Swiggy's food delivery is already unit-profit at (Rs 13 per order) and Blinkit/Eternal has higher revenue per order but also higher delivery costs, it noted, adding increased cost be shared across ecosystem partners and the industry may adjust pricing or fees to absorb incremental cost. Bernstein has an 'outperform' rating on both Swiggy and Eternal.
Elara Capital maintains its 'buy' rating on Eternal with a target price of Rs 415, while 'accumulate' rating on Swiggy with a target price of Rs 490, despite near-term cost risks. Expected cost pass-through to consumers may slow demand in the short-term, it said. Elara notes that both companies already offer insurance (1 per cent of revenue), partly offsetting the new requirement.
New labour codes may increase gig worker costs and weigh on near-term sentiment as four labour codes define gig work and require 1-2 per cent aggregator contributions, said Morgan Stanley. It believes that the platform firms may face added costs Of `1.5-2.5 per order in food delivery and quick commerce.
Ebitda impact estimated at 4-10 per cent across major platform sectors Costs may be shared across stakeholders, easing pressure on platforms. New law seeks to formalise employment and expand social security for all worker types, it added. "Platforms may pass on the incremental costs to customers, merchants or workers over time, limiting the long-term pressure."