Blinkit to remain undisputed market leader despite Amazon, Flipkart's QC entry, says Anand Rathi, sees 43% upside

While Eternal and Swiggy investors worry about Amazon and Flipkart’s entry into India’s tight spaced quick commerce segment, analysts at Anand Rathi believe that Blinkit is the undisputed market leader that is structurally well-positioned in this space to handle the heat.

In its latest note on quick commerce, Anand Rathi highlighted that Blinkit’s market leadership is likely to be maintained on the back of clear scale advantage with strong customer retention without relying on heavy discounts. The domestic brokerage maintained its ‘Buy’ rating on the shares of Eternal with a target price of Rs 400 apiece, implying an upside potential of more than 43% from the stock’s previous closing price.

For Swiggy, Anand Rathi has a ‘Hold’ call with a target price of Rs 310 apiece. This implies an upside potential of nearly 26% from the stock’s previous closing price.


Zepto's rapid market share gain

The domestic brokerage said that Zepto’s draft red herring prospectus (DRHP) filed with SEBI shows rapid revenue and market share gain, as the company began shifting to a model built on consistently low prices rather than periodic discounts. It noted that the quick commerce platform set a Rs 99 threshold for free delivery and dropped platform fees and surcharges, waiving most charges in November 2025 soon after raising $450 million.

“This led to a daily order volume of nearly 2.3 million vs. around 3 million/1.2 million of Blinkit and Swiggy Instamart in Q4 FY26 respectively. Zepto’s model depends on pushing throughput from around 2k to 3k orders/day/store to achieve EBITDA breakeven vs. Blinkit and Instamart at ~1.5k to 1.8k orders/day/store. While low prices and Rs 99 free delivery threshold have got it this far, the next leg of growth will need more users,” it added.

Winning new users from rivals is likely to be hard especially as the sector continues to get even more crowded with the entry of Amazon, Flipkart Minutes and JioMart as each chases value-conscious customers, Anand Rathi said.

Also read: Zepto’s ops structure sparks regulatory fear ahead of IPO

Why investors should stick with Blinkit?

“We believe investors should stick with Blinkit, as it stands as undisputed market leader, processing nearly as many orders as Zepto and Swiggy Instamart combined, with >2,200 dark stores. It is the only major player to have consistently achieved positive adjusted EBITDA in recent quarters. This reduces the ‘cash burn’ risk, offering investors a steadier path to sustained earnings rather than pure reliance on continuous funding rounds. Eternal’s broader ecosystem provides structural defence against competitors like Amazon, BigBasket and Flipkart Minutes,” it added.

Also read: Amazon’s rapid delivery push triggers $15 billion rout for Eternal, Swiggy

Eternal share price

Eternal shares have gained 9% in the past five days, while Swiggy shares rose over 4%. Eternal shares jumped over 10% in one week and 12% in one month. The stock has gained over 8% in one year and 275% in three years.

Swiggy share price

Swiggy shares, meanwhile, gained 3.5% in one week but declined around 2% in one month and 36% in 2026 so far. The stock has overall fallen around 35% in one year.

Also read: Inside Zepto's profit push ahead of its IPO

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)