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While shares of Swiggy are down nearly 2.5%, those of Eternal have extended their losses to 1% as well.
The decline was seen after Swiss investment bank UBS cut its price targets on both stocks.
UBS has maintained a 'Buy' rating on Eternal but lowered its price target to ₹375 from ₹400 per share earlier. For Swiggy, the brokerage also retained its 'Buy' rating while cutting the target price to ₹510 from ₹580.
The brokerage, in its note on the quick commerce segment, said competition has intensified in recent months, with higher discounting even as network expansion continues. It added that food delivery growth is improving, while competition in the segment remains broadly stable.
UBS has cut its adjusted EBITDA estimates for the next two to three years by 10-18% for Eternal and by 12-28% for Swiggy. However, it said the recent correction in stock prices, coupled with a still strong growth outlook, keeps it positive on the sector.
33 analysts have coverage on Eternal, of which 29 of them have a 'Buy' rating, while four have a 'Sell' recommendation.
28 analysts have coverage on Swiggy, where 24 have a 'Buy' rating, while two each have a 'Hold' and a 'Sell' recommendation.
Shares of Swiggy were trading 2.38% lower at ₹342, down 12% so far in 2026, while Eternal shares were down 0.31% at ₹293.65, though the stock is up over 4% so far this year.
