He described the gig worker issue as a function of demand and supply in the labour market and does not expect it to materially hurt company finances unless that balance changes.
While quick commerce platforms are relatively insulated from broader consumption weakness—since they largely enable a channel shift rather than incremental consumption—they are highly vulnerable to competitive pressure. “Given the size of the prize, we think that will remain intensely competitive going through 2026,” he said.As a result, he expects a volatile year ahead for both Swiggy and Eternal and does not see any “massive, significant, immediate upside on either of the two names.”
Turning to traditional hypermarket retailers, Gor said the outlook appears even more challenging. He expects continued softness for chains such as V-Mart Retail, Avenue Supermarts and Vishal Mega Mart, which are more exposed to the weak broad-based consumption environment.He stated that retailers catering to middle-of-the-pyramid consumers and operating in tier-3 and tier-4 cities had performed well in recent years, helped by softer inflation in those regions. However, that strong performance has now created a high base effect, making growth harder to sustain.
Also Read | Eternal stock could see 30% upside even as new labour rules lift gig costs: Elara Capital
Unlike quick commerce platforms, these brick-and-mortar retailers are directly impacted by sluggish demand across both staples and discretionary categories. “We believe the consumption environment remains… they are more affected by the broad-based consumption environment being weaker… than the internet names are,” Gor said, indicating that pressure on the hypermarket segment is likely to persist.
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