Shares of Swiggy and Eternal (parent of Zomato) rallied up to 5% Tuesday after reports that rival Zepto is considering a lower IPO valuation of around $3 billion, well below its $5 billion target and $7 billion last funding round. Eternal shares closed at ₹307.65, up 4.02%, while Swiggy settled at ₹268.35, up 3.63%.

Analysts say the market is rewarding companies with clearer profitability visibility. Zepto's draft prospectus proposes raising ₹8,010 crore, with 45% for dark-store expansion. However, Emkay Global notes Zepto posts the highest adjusted EBITDA losses among peers at ₹5,360 crore in FY26, versus ₹3,510 crore for Swiggy and ₹280 crore for Blinkit.

Zepto's lower net average order value of ₹357 (vs ₹491 for Swiggy, ₹530 for Blinkit) and everyday low-price strategy drive volume but hurt margins. Emkay expects Zepto to eventually raise order values like Swiggy, though this may slow growth. The brokerage maintains 'Buy' ratings on both Eternal and Swiggy with targets of ₹370 and ₹350.