The quick commerce rivalry has intensified significantly following Q1 results that revealed stark contrasts between the two listed leaders. Eternal shares are currently down 15% from their peak, while Swiggy has seen a steeper correction, with the stock down 41% from its own 52-week high. According to reports from The Economic Times, foreign institutional investors have reduced their stake in the food delivery company for five consecutive quarters, contributing to the recent selling pressure. The market performance reflects investor uncertainty about the sustainability of aggressive growth strategies versus profitability-focused approaches in the competitive quick commerce space.
Nomura expects Instamart to remain loss-making through FY27 and FY28, with adjusted EBITDA loss estimates raised to ₹3,100 crore for FY27 and ₹2,300 crore for FY28 from earlier projections of ₹2,100 crore and ₹500 crore respectively. As reported by The Economic Times, the brokerage believes Swiggy is well positioned to absorb these losses, supported by cash generation from its food delivery business and a cash balance of ₹14,300 crore. The company expects Instamart's gross order value to increase four to five times to ₹1.5 lakh crore by FY31 from ₹28,000 crore in FY26, currently serving more than 14 million monthly active buyers across 130-plus cities.
Eternal has raised its steady-state EBITDA margin expectation for Blinkit to 6% of NOV from the earlier 5-6%, supported by efficiencies from larger stores and warehouses, deeper assortments and improved working capital management. According to reports from The Economic Times, the company expects net working capital days to decline to 12 days from 18 days in the steady state. Blinkit reported faster NOV growth along with improving confidence around profitability and cash generation, with Zomato recording its fastest growth in six quarters. Management guided towards the upper end of its long-term margin range, with a reported EBIT margin of around 4% and an adjusted EBITDA margin of around 6%.
While quick commerce platforms continue to grow rapidly, FMCG companies are increasingly balancing platform-led growth with brand-building initiatives. Dabur reported that its quick-commerce business grew 55.6% in FY26, contributing to a 35% increase in overall e-commerce sales, with the company describing it as one of its fastest-growing channels. HUL has called quick commerce a strategically important channel, noting it drives product discovery and accelerates premium category adoption. Nestlé India increased advertising expenditure by more than 40% year-on-year in Q1, with digital platforms now accounting for about 55% of its advertising budget compared with 33% in 2021. Industry executives emphasize that while quick commerce may influence purchase locations, strong brands still determine consumer choices, leading to increased investment in brand equity alongside distribution expansion.
