Shares of Eternal and Swiggy rose during the intraday trading on the BSE today after brokerage Citi raised the target price (TP) for both the companies.

Eternal touched a fresh 52-week high at INR 347.50 during the intraday trading after Citi raised the TP for the stock to INR 395 from INR 320 earlier.

The new TP is about 15% higher than the stock’s closing price of INR 341.55 yesterday.

As per Citi, Eternal’s quick commerce business Blinkit’s growth momentum remains stellar and focus on user acquisition is visible in the rise in app-traffic, continued investment in dark store expansion and addition of new cities. 

On the back of these factors, Blinkit has solidified its market leadership in recent quarters, driving upside in both growth and margins, the brokerage said in a note. 

It expects Blinkit’s gross order value (GOV) to grow 123% YoY in FY26 and 57% in FY27. “Expect adjusted EBITDA margin break-even in Q3 FY26 and further expansion to 1.9%/3.0% of GOV in FY27/28E,” Citi added. 

For Eternal’s food delivery business, Citi expects stable trends with growth in the mid-high teens range and margins at 4.3% in FY26 and 4.5% in FY27.

Shares of Eternal gave up some of the gains and were trading 1% higher at INR 345.05 on the BSE at 13:30 IST, with more than 1.5 Cr shares being traded by then. The company’s market capitalisation stood at INR 3.33 Lakh Cr ($37.5Bn).

Eternal posted a consolidated net profit of INR 25 Cr in Q1 FY26, down over 90% from INR 253 Cr in the same quarter of previous year, as the company continued to make investments in its quick commerce vertical Blinkit. Operating revenue in the quarter surged over 70% to INR 7,167 Cr from INR 4,206 Cr in the year-ago quarter.

Q1 was the first quarter when Blinkit outpaced the company’s food delivery segment in contribution to its top line. Blinkit’s operating revenue for the quarter stood at INR 2,400 Cr, recording an over 2.5X growth from INR 942 Cr in Q1 FY25. 

Meanwhile, shares of Eternal’s rival Swiggy were up nearly 3.1% at INR 434 on the BSE as of 13:30 IST. Citi increased the TP for Swiggy to INR 495 from INR 465 earlier, translating into a 17% upside compared to yesterday’s close of INR 421. 

Citi expects Swiggy’s quick commerce business Instamart to witness a GOV growth of 23% in Q2 on a sequential basis and 106% YoY. The brokerage sees its revenue increasing 26% QoQ and 111% YoY, with margins at -2.9%. 

The food delivery business is expected to see 19% increase in GOV in Q2 FY26 on a YoY basis and 21% revenue growth. Citi foresees adjusted EBITDA margin for Swiggy’s food delivery business at 2.8%. 

The Sriharsha Majety-led company’s overall revenue could see a 65% YoY rise in revenue, with adjusted EBITDA loss of INR 760 Cr and cash burn of INR 950 Cr. 

Swiggy’s net loss zoomed 96% to INR 1,197 Cr in the June quarter from INR 611 Cr in the year-ago quarter as it also continued to invest to expand its quick commerce operations. 

Instamart saw its loss almost triple to INR 797 Cr during the quarter under review from INR 280 Cr in Q1 FY25. However, the increase was a mere 3.3% on a sequential basis from INR 771 Cr.