Indian online platforms' shares unruffled by new labour codes

Eternal

24/11/2025 04:34

** Indian online delivery firms Swiggy SWIG.NS and Eternal ETEA.NS up ~1% and down 1%, respectively

** Newly listed Urban Company URBN.NS, which provides home cleaning services, down 1.26%

** India implements four new labour codes, under which all gig workers are to be provided with social security benefits

** CLSA says new codes could lead to net impact of 1 rupee per order for both SWIG and ETEA, which could be passed to consumers

** Adds, both cos already provide multiple social security benefits

** ETEA and SWIG say they see no material long-term impact to business

** Bernstein says new code could reduce food delivery business adjusted EBITDA margin by 25-65 bps, and quick commerce margin by 60-70 bps

** Morgan Stanley says gross impact of 4-10% of adjusted EBITDA on various online categories could be shared between stakeholders

** YTD, ETEA up ~8%, SWIG down ~28%, URBN down ~13%

 (Reporting by Ananta Agarwal in Bengaluru)

 ((Ananta.Agarwal@thomsonreuters.com))