shares fell nearly 5 per cent on Tuesday, closing at ₹284.50, after UBS reported that rival Swiggy gained food delivery market share from the company in November. The stock was among the top losers in the Nifty 50, trading down from its previous close of ₹298.45.
The brokerage noted that overall industry order volumes declined 5.3 per cent month-on-month in November, while Eternal’s order volumes fell 4.4 per cent and recorded a marginal 0.1 per cent increase.
UBS attributed Swiggy’s relative outperformance to a reduction in average order value and initiatives such as Snacc, Bolt, and the 99 Store. The firm added that Eternal had outperformed Swiggy in the preceding two months.
The decline comes as investors weigh concerns over the newly implemented labour codes. Analysts estimate that platform companies could face an incremental 5 per cent impact on annual payments to workers, translating to approximately ₹3.2 per order for food delivery and ₹2.4 per order for quick commerce. However, brokerages expect these costs to be passed on to consumers over time through higher platform fees.
Trading volumes were heavy, with over 58.6 lakh shares changing hands worth ₹1,682 crore. The stock remains about 23 per cent below its October 52-week high of ₹368.45, though it has gained nearly 3 per cent year-to-date.