New Labour Laws: Here's how analysts project Eternal and Swiggy to get impacted

Shares of food delivery and quick commerce platforms Eternal Ltd. and Swiggy Ltd. are trading mixed on Monday, November 24, as the government's new Labour Codes, effective November 21, 2025, bring gig and platform workers under formal social security for the first time.

The rules mandate that aggregators such as Swiggy, Eternal and quick commerce firms contribute 1-2% of their annual turnover towards gig-worker welfare, capped at 5% of total payouts made to these workers.

Benefits will be routed through state welfare boards and existing government schemes.

Global brokerage firm Morgan Stanley said the new codes may raise gig-worker costs across delivery platforms and weigh on short-term sentiment.

The brokerage mentioned that the four Labour Codes formally define gig work and require aggregators to contribute between 1% and 2%, which could add ₹1.5 to ₹2.5 per order in food delivery and quick commerce.

Morgan Stanley estimates an EBITDA impact of 4% to 10% for major platform sectors but said part of the burden could be shared across customers, merchants and the wider ecosystem.

Bernstein expects a more modest impact on Swiggy and Eternal, estimating a 25 to 70 basis-point reduction in EBITDA.

The brokerage added that quick commerce margins remain more sensitive than food delivery because rider and warehouse costs account for the largest share of operating expenses.

Bernstein mentioned that Swiggy's food delivery is already unit-profitable at about ₹13 per order, while Blinkit and Eternal enjoy higher revenue per order but also incur higher fulfilment costs.

It added that existing insurance benefits may cushion some of the regulatory costs, and the long-term profitability outlook remains intact as companies could adjust pricing to absorb incremental expenses.

Bernstein maintains an 'Outperform' rating on both the platforms.

Platform companies said they welcome the government's focus on gig-worker safety but will wait for the final notification before assessing financial implications.