Eternal, Swiggy, Meesho, Paytm, Nykaa, Delhivery, Nazara: Q3 preview, target prices & more

The Indian internet sector clocked what JM Financial described as a proper festive quarter after 3 years in Q3FY26, but the benefits of the season are unlikely to be evenly reflected across listed internet stocks. 

In its latest sector preview, the brokerage said festive demand was spread across the second and third quarters, resulting in sequential performance being flat to slightly lower sequentially across consumption names.

JM Financial outlined a differentiated outlook for major internet companies for Q3FY26, categorising them into ‘Good’, ‘Mixed’ and ‘Weak’ performers, along with revised target prices.

JM Financial expects a strong quarterly performance from a clutch of companies, including One 97 Communications (Paytm), Delhivery, Nykaa, Eternal (Zomato), TBO TEK, CarTrade Tech and Affle 3I, which it said are likely to post a good quarter.

For Eternal, the brokerage expects gross order value trends to improve during the quarter. In the food delivery business, November growth trends are likely to improve to 16% YoY, aided by steady user additions. Blinkit’s revenue growth is expected to remain strong, supported by the ongoing shift to an inventory-led model, though sequential growth may moderate to 13% due to a high base. Rating: Buy | Target price: Rs 400

On Paytm, JM Financial sees improving sentiment, with consolidated revenue expected to grow 22% YoY, driven by a 24% YoY increase in Gross Merchandise Value. Rating: Buy | Target price: Rs 1,810 

Delhivery was upgraded to ‘Buy’, with JM Financial forecasting robust growth in express parcel volumes, up 31% YoY. The brokerage attributed this to the Ecom Express consolidation, spillover of shipments from 2Q due to GST reforms and back-end sale season. Rating: Buy | Target price: Rs 570 

Nykaa is expected to report GMV growth in the late twenties YoY, with its core Beauty and Personal Care segment projected to grow around 26% YoY. JM Financial said investors would closely track the fashion business. Rating: Buy | Target price: Rs 325

A second group of companies — including PB Fintech, Meesho, BlackBuck, Brainbees Solutions (FirstCry), Le Travenues Technology (ixigo), Info Edge, IndiaMART InterMESH, Yatra Online and Zaggle Prepaid Ocean Services — is expected to post mixed quarterly outcomes.

PB Fintech (Policybazaar) was upgraded to ‘Add’, with JM Financial citing a sharp pick-up in retail health and individual life insurance segments following GST changes. Core new business premium is expected to grow around 31% YoY. Rating: Add | Target price: Rs 1,830.

Meesho, reporting its first quarterly results after listing, is expected to deliver strong topline momentum led by demand from smaller cities. However, profitability remains under pressure. “The company continues to focus on aggressive growth and, hence, margins will continue to be under pressure in 3Q as well,” the brokerage said. Rating: Reduce | Target price: Rs 170

FirstCry’s consolidated revenue is projected to rise about 14% YoY. While its India multi-channel business stands to gain from GST reforms, JM Financial cautioned that the International segment will continue to be a drag on margins, even as absolute losses narrow. Rating: Buy | Target price: Rs 460

JM Financial expects weaker quarterly numbers from a few names, including Swiggy, Route Mobile, Just Dial and Nazara Technologies.

For Swiggy, the brokerage estimates sequential GOV growth of 15% at Instamart but flagged continued monetisation challenges. “Take-rates are likely to decline by ~40bps QoQ to 13.6% due to lower monetisation of customers,” it said. Rating: Add | Target price: Rs 400

Nazara Technologies is expected to deliver a weak quarter due to seasonality and the deconsolidation of Nodwin Gaming, with revenue projected to decline about 21% QoQ. “The gaming ban/regulatory restrictions have impacted user engagement and monetisation,” JM Financial said, while cutting EPS estimates by 3–10% for FY26–28E.
Rating: Add | Target price: Rs 280.

Other key calls

JM Financial expects Info Edge to report standalone billings growth of 11% YoY (Add; TP Rs 1,430), while IndiaMART may see muted net subscriber additions but retains a ‘Buy’ call with a target price of Rs 2,800. CarTrade was upgraded to ‘Add’ on sustained momentum in the new auto business, with a target price of Rs 3,110. Affle is expected to post 18.5% YoY revenue growth, though the brokerage maintained a ‘Sell’ rating with a target price of Rs 1,550.