Shares of leading online food delivery platforms Zomato and Swiggy suffered sharp losses on March 25, dropping 6 percent and 5 percent, respectively. The decline follows a cautious report by international brokerage Macquarie, which expressed skepticism over the quick commerce sector, preferring investments in dine-out stocks like Devyani International and Westlife Foodworld.<\/p>\n
The downturn also coincides with Zepto’s reported $250 million secondary sale ahead of its IPO, which aims to boost the ownership of Indian investors before the company goes public.<\/p>\n
Swiggy’s stock has plunged nearly 40 percent from its peak in 2025.<\/p>\n<\/li>\n
Zomato’s share price is down nearly 25 percent this year.<\/p>\n<\/li>\n<\/ul>\n
The sharp drop follows weaker-than-expected third-quarter financial results, as both companies struggled with slowing demand.<\/p>\n
Industry executives have acknowledged softening consumer demand, particularly in the latter half of November and December 2024.<\/p>\n
Rakesh Ranjan, CEO of Zomato’s food delivery business, stated in a January 20 shareholder letter:<\/p>\n
\n“We are currently experiencing a broad-based slowdown in demand, which started in the second half of November.”<\/em><\/p>\n<\/blockquote>\n<\/li>\n
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Swiggy’s Food Marketplace CEO, Rohit Kapoor, emphasized on February 5 that while the October-December period is seasonally softer, the company still recorded 19.2 percent growth, which is within their projected range of 18-22 percent.<\/p>\n<\/li>\n<\/ul>\n
Zepto\u2019s Expansion Raises Competitive Pressure in Quick Commerce<\/h3>\n
The continued decline in Zomato and Swiggy shares also reflects the growing dominance of Zepto in the quick commerce sector.<\/p>\n
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According to Citi\u2019s latest report, Swiggy holds the third-largest market share in quick commerce, trailing behind Blinkit (41 percent) and Zepto.<\/p>\n<\/li>\n
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Swiggy’s estimated market share stands at 23 percent, significantly lower than Blinkit\u2019s leadership position.<\/p>\n<\/li>\n<\/ul>\n
Zepto\u2019s upcoming IPO and aggressive market expansion may intensify pricing competition and pressure margins for both Swiggy and Zomato.<\/p>\n
Brokerage Views on Swiggy and Zomato Amid Market Volatility<\/h3>\n
Despite recent stock declines, some analysts remain bullish on Swiggy.<\/p>\n
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JM Financial has maintained a \u2018Buy\u2019 rating on Swiggy, with a target price of Rs 500 per share, implying a potential 46 percent upside from current levels.<\/p>\n<\/li>\n
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The optimism stems from Swiggy\u2019s plans to enter the B2B supplies business through an app called Assure, aimed at helping restaurants source high-quality food ingredients locally.<\/p>\n<\/li>\n
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This move directly challenges Zomato\u2019s Hyperpure business, which already operates in this segment.<\/p>\n<\/li>\n<\/ul>\n
Investment Shift Towards Restaurant Chains Over Food Delivery<\/h3>\n
Macquarie\u2019s recent report suggests that the dine-out industry is positioned for stronger recovery compared to food delivery services.<\/p>\n
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Devyani International (which operates KFC and Pizza Hut in India) and Westlife Foodworld (McDonald’s India franchisee) are expected to benefit from rising discretionary spending and economic recovery.<\/p>\n<\/li>\n
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The brokerage firm remains cautious about quick commerce, citing intensifying competition and margin pressures.<\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"
Macquarie Prefers Dine-Out Stocks as Food Delivery Giants Face Headwinds Shares of leading online food delivery platforms Zomato and Swiggy suffered sharp losses on March 25, dropping 6 percent and 5 percent, respectively. The decline follows a cautious report by international brokerage Macquarie, which expressed skepticism over the quick commerce sector, preferring investments in dine-out […]<\/p>\n","protected":false},"author":4,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-5842","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5842","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=5842"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5842\/revisions"}],"predecessor-version":[{"id":5844,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5842\/revisions\/5844"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/5843"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=5842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=5842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=5842"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=5842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}