UBS Cuts Targets for Eternal, Swiggy Amidst Quick Commerce Discount War

• UBS warns India's quick commerce sector faces delayed margin recovery due to escalating discount wars.
• Competition has intensified, pushing back the path to profitability for companies in the sector.
• UBS lowered target prices for Eternal (from ₹400 to ₹375) and Swiggy (from ₹580 to ₹510), while maintaining 'Buy' ratings.
• Amazon and Zepto are offering aggressive discounts, while Blinkit's discounts are also higher than before.
• Blinkit's break-even timeline is now pushed to FY27 from FY26, and Swiggy's Instamart EBITDA margins are expected to decline.

Why It Matters: UBS reduced targets for Eternal and Swiggy, citing intense quick commerce discount wars delaying profitability.