Eternal Dominates Quick Commerce, Swiggy Lags

Eternal's quick commerce business is experiencing robust growth, with revenue up 18.4% QoQ to Rs 15,664 crore. This performance significantly outpaces rival Swiggy's Instamart, which saw only a 0.2% QoQ increase in Gross Order Value.

Eternal's competitive edge stems from its vast warehouse density, having added 200 dark stores last quarter to reach 2,443. This expansion fuels organic revenue growth and efficient order fulfillment, contrasting with Swiggy's slower store network expansion.

The company's strategy of saturating areas with dark stores facilitates faster deliveries, improving customer transaction value and frequency. This infrastructure advantage, coupled with economies of scale, resulted in a Rs 102 crore adjusted EBITDA for Eternal's quick commerce segment.

Swiggy's Instamart, however, reported a Rs 780 crore loss in the same segment, despite efforts to improve contribution margins. The quick commerce sector, still a small part of India's trillion-dollar retail market, offers significant runway for growth and potential industry consolidation.

Eternal reported a consolidated net order value of Rs 31,120 crore, an 86% YoY increase driven by quick commerce. Its adjusted EBITDA was Rs 555 crore, marking a 223% YoY rise, and profit after tax stood at Rs 92 crore. Swiggy's overall revenue grew 34% YoY to Rs 7,112 crore, with Instamart's GOV reaching Rs 7,907 crore.