India's Swiggy, Zepto unlikely to trigger quick-commerce price war, Jefferies says

Eternal

17/12/2025 06:12

** Jefferies says recent fundraises by Swiggy SWIG.NS and Zepto's IPO plans have raised concerns about sustained price wars

** Says the two need to demonstrate profitability for public markets and are unlikely to worsen competitive dynamics

** Shares of Swiggy up 1.88%; rival Eternal ETEA.NS rises 0.70%

** Eternal-owned Blinkit remains leader in quick commerce segment, with best-in-class profitability due to its growth-first strategy and aggressive store expansion - Jefferies

** Maintains "Buy" on both

** Says, entry by horizontals such as Amazon, Reliance and Flipkart is more defensive, will take time to scale

** Forecasts minor impact in December quarter due to festive season shift and inventory pricing adjustments, but underlying demand trends remain intact

** YTD, SWIG down ~26% while ETEA up ~3%

 (Reporting by Urvi Dugar in Bengaluru)

 ((UrviManoj.Dugar@thomsonreuters.com;))