UBS cuts TP on India's Swiggy and Eternal

Eternal

14/01/2026 06:20

** Shares of quick commerce firm Swiggy SWIG.NS down 1.71% while Eternal ETEA.NS trades 0.4% higher

** UBS maintains 'Buy' but cuts TP on both; SWIG at 375 rupees from 400 rupees and ETEA at 510 rupees from 580 rupees

** Says discounts, pricing checks and app usage data show strong competition in India's QC sector since Sept'25, with intense margin pressure continuing into Jan'26

** Also cuts EBIDTA estimates for the next 2-3 years by 10-18% for ETEA and 12-28% for SWIG

** On Tuesday, the government ordered Blinkit, Zepto and Swiggy to stop promoting their grocery deliveries as a "10-minute" service, Reuters reported citing two sources

** In 2025, SWIG's fell 28.6% whereas ETEA was flat

 (Reporting by Urvi Dugar in Bengaluru)

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