Shares of online food delivery companies Swiggy and Eternal (Zomato) declined up to 5% on Tuesday in line with a weak broader market, amid heavy volumes. The overall Indian equity market traded lower, with benchmark indices Sensex and Nifty slipping as much as 0.4% on broad-based selling across sectors.

Shares of Eternal fell as much as 5.26% to an intraday low of ₹282.65 on the BSE, dragging its market capitalisation down to ₹2.77 lakh crore, making it the top loser on the NIFTY50 today. The Blinkit parent recorded its sharpest intraday fall in seven months, following earlier declines of 5.3% on May 2, 2025, and 10% on April 7, 2025.

After today’s fall, Eternal’s shares have corrected 23% from their 52-week high of ₹368.40 touched on October 16, 2025. Despite the correction, the foodtech major remains up 49% from its 52-week low of ₹189.60 hit on April 7, 2025.

In a similar trend, Swiggy shares dropped 4.5% to the day’s low of ₹394.55 on the BSE, while its market capitalisation slipped to ₹99,355 crore.

The online food delivery stock touched its 52-week high of ₹617 on December 23, 2024, and its 52-week low of ₹297 on May 13, 2025.

On the volume front, Eternal saw about 24 lakh shares change hands, compared with a two-week average of 10.88 lakh shares. Meanwhile, around 4.6 lakh Swiggy shares were traded, versus a two-week average of 5.12 lakh shares.

Domestic brokerage Emkay Global, in a recent report, said the market remains cautious about the long-term profitability of quick commerce (QCom) businesses as competitive intensity in the segment continues to rise. It noted that platforms have multiple margin-enhancing levers, including advertising income from brands, monetisation of sampling and market research, a higher contribution from private labels, and expansion into high-margin categories such as fashion, electronics and stationery.

The brokerage cautioned that competitive intensity in QCom is accelerating as a broader set of players targets the segment as the next growth engine for retail consumption. Horizontal e-commerce players such as Amazon and Flipkart, big-box retailers including JioMart and DMart Ready, and established QCom operators like Blinkit, Instamart and Zepto are all investing in dedicated QCom supply chains.

“While we remain constructive on the QCom space (as we see a long growth runway for the business), competition is intensifying through entry of adjacent sector players, and capital raise by the existing players,” it said in a report.  Emkay has maintained ‘Buy’ on Eternal with a target price of ₹430 per share.

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