Eternal, Swiggy Q4 results preview: Up to 69% upside on Zomato stock - Target prices

As the food delivery companies Swiggy Ltd and Eternal Ltd are setting the stage for a fourth quarter in the 2025-26 fiscal year, while they are recalibrating their quick commerce strategies amid external shocks such as fuel shortages and restaurant disruptions.

Brokerage firm Nirmal Bang noted that the "uninterrupted growth is attributed to the positive impact of the T20 World Cup between February and March, which should offset the softness stemming from cooking fuel shortages".

According to Nirmal Bang, the focus in QC is shifting to ‘good quality growth from 'just growth'. 

Swiggy

For Swiggy's food delivery business, Nirmal Bang expects gross order value (GOV) growth to exceed 20%, with revenues approaching Rs 2,030 crore, a 25% year-on-year (YoY) jump, driven by a higher take rate courtesy of an improved advertisement mix and the incremental benefit of increased platform fees kicking in during March. 

“We believe adjusted EBITDA should grow closer to Rs 280 crore for Q4FY26E indicating a margin expansion of 20bps during the quarter,” Nirmal Bang added.

JM Financial also expects the 20% YoY GOV expansion for Swiggy's food delivery, noting that monthly transacting users (MTUs) are expected to inch up to 1.82 crore.

“However, adjusted EBITDA loss is likely to be around Rs 850 crore vs Rs 900 crore in 3Q, indicating path to the profitability will continue to disappoint investors,” JM Financial said

Eternal

“For Eternal’s food delivery business, we believe the positive eventrelated impact should lead to 18% NOV growth and 20% GOV growth despite the external shock witnessed during March,” Nirmal Bang said.

Nirmal Bang expects Eternal's food delivery revenue to hit Rs 1040 crore (+23% YoY), an adjusted EBITDA of Rs 540 crore (+25% YoY) with a 20 basis point margin expansion. 

JM Financial projects Eternal's food delivery MTUs to reach 2.51 crore, predicting a 24% YoY growth in adjusted revenue. For its quick commerce vertical, Blinkit, Nirmal Bang expects an 11% QoQ NOV growth. 

Target prices

Nirmal Bang maintains a 'Buy' rating on both counters. The brokerage has set a target price of Rs 363 for Swiggy and Rs 334 for Eternal.

JM Financial maintains a 'Buy' on Eternal with a target price of Rs 400 (implies 69% upside from current levels), but has a 'Reduce' call on Swiggy, maintaining a target price of Rs 270.