Shares of Indian food delivery and quick-commerce giants Swiggy Ltd and Eternal Ltd experienced a notable decline in Monday's trading session. Swiggy's stock fell by 4.38 percent to Rs 268.50, while Eternal Ltd, the parent company of rival Zomato, saw its shares slip by 3.45 percent to Rs 247.50.
Swiggy Faces Quick-Commerce Headwinds
Swiggy's stock came under significant pressure due to a combination of factors, primarily slowing growth within its quick-commerce division, Instamart, and intensifying market competition. Despite reporting a narrower loss for the fourth quarter of fiscal year 2026 (Q4 FY26), these growth concerns outweighed the financial improvements.
According to analysis from JPMorgan, Swiggy's Instamart lagged behind its competitors in gross order value (GOV) growth. Instamart recorded a 68.8 percent increase, which was notably below Blinkit's 95.4 percent rise, indicating potential market share losses for Swiggy in the competitive quick-commerce sector.
Nuvama Institutional Equities highlighted that Swiggy's EBITDA loss for the quarter narrowed to Rs 700 crore, an improvement of Rs 85 crore sequentially and Rs 270 crore year-on-year. The net loss (Profit After Tax, PAT) also improved, coming in at Rs 800 crore, better by Rs 260 crore quarter-on-quarter and Rs 280 crore year-on-year.
Eternal (Zomato Parent) Declines Despite Strong Earnings
Interestingly, Eternal Ltd, the parent company of the food delivery platform Zomato, saw its shares decline despite reporting robust financial results for the January-March 2026 quarter. The company announced a 346 percent surge in consolidated net profit, reaching Rs 174 crore. Revenue from operations also jumped significantly, rising 196 percent to Rs 17,292 crore compared to Rs 5,833 crore in the same period last year.
Broader Market Impact: Surging Crude Oil Prices
A major contributing factor to the decline in both Swiggy and Eternal shares was a sharp increase in global crude oil prices. This surge is anticipated to lead to higher delivery and logistics costs for companies operating in the quick-commerce and food delivery sectors, directly impacting their operational profitability.
Oil prices climbed significantly following comments from US President Donald Trump, who described Iran's response to a proposal as "unacceptable." This statement intensified supply concerns, particularly as the Strait of Hormuz remained largely closed, tightening the global oil market. Brent crude futures rose by $4.04 (3.99 percent) to $105.33 a barrel, while US West Texas Intermediate (WTI) crude increased by $4.35 (4.55 percent) to $99.76 a barrel.