Swiggy vs Eternal (Zomato): Who’s Leading After Q4 Results?

India’s top two food delivery platforms, Swiggy and Eternal (formerly Zomato), have announced their financial results for the March quarter (Q4 FY25). Both companies are heavily investing in their quick commerce businesses, and that has affected their profitability.

At 12:27 PM, Swiggy share price was down 2.44% and was trading at ₹312.50. On the other hand, Eternal (Zomato) share price was down 2.17% and was trading at ₹234.30.

How Many New Stores Did Swiggy and Eternal (Zomato) Open?

Quick commerce, which delivers everyday items quickly, is now a big focus for both companies. Both companies are opening many new dark stores (warehouses for fast deliveries), offering discounts, and even subsidising delivery costs to attract customers. This strategy is costing a lot of money.

• Eternal added 294 new stores in Q4, its highest-ever quarterly addition, bringing the total to 1,301 stores.
• Swiggy added 316 new stores—more than it added in the past two years combined.

Swiggy and Eternal Experiencing Slower Growth in Food Delivery

While expanding quick commerce, their main food delivery businesses have slowed down. Customers are now also using quick commerce services to order ready-to-eat meals, which is hurting their traditional food delivery orders.

Blinkit vs Instamart: Who’s Winning in Quick Commerce?

Eternal’s quick commerce arm, Blinkit, is growing faster than Swiggy’s Instamart:

• Blinkit’s Gross Order Value (GOV): ₹94.2 billion (up 134% YoY, 21% QoQ)
• Instamart’s GOV: ₹46.7 billion (up 101% YoY, 19.5% QoQ)

Blinkit also has more Monthly Transacting Users (MTUs):

• Blinkit: 13.7 million
• Instamart: 9.8 million

Profit and Losses: Eternal Slightly Ahead Than Swiggy

• Eternal’s Q4 profit fell by 78% to ₹31 crore, from ₹141 crore a year ago.
• Swiggy’s Q4 loss increased to ₹1,081 crore from ₹555 crore last year.

Both companies are losing money, but Eternal is in a slightly better position because Blinkit is growing faster and has a stronger presence.

Conclusion: Eternal Has the Edge, But Risks Remain

Both companies are under pressure due to their aggressive push into quick commerce. But Eternal appears stronger, thanks to Blinkit’s rapid growth and large user base. However, high spending and tough competition mean that the road ahead won’t be easy for either. 

Read more on: Swiggy in Focus as Zomato (Eternal) Exits 10-Minute Delivery; Bolt Expands to 500 Cities
 
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.