India’s E-Commerce Stocks Outperform Chinese Peers on Profit Optimism

India's quick-commerce sector, led by Swiggy, Eternal (Zomato's parent company), and Zepto, is experiencing rapid growth and investor optimism, with the market projected to reach $100 billion by 2030. These companies dominate nearly 90% of the market, leveraging strong supplier networks and early entry to outperform both domestic indices and Chinese counterparts, whose food-delivery firms face losses due to intense price competition. Despite ongoing profitability challenges, smart strategies such as increasing order values, charging for fast delivery, and optimizing delivery costs have helped these firms improve financial performance, with analysts noting that losses may have peaked. The leading players have heavily invested in expanding warehouse and dark store networks, putting pressure on margins, but this costly expansion is expected to moderate, allowing a focus on profitability. New entrants like Amazon and Flipkart are struggling to compete sustainably against entrenched incumbents who benefit from established infrastructure and supplier relationships. Investor confidence is reflected in strong stock rallies, with Swiggy shares climbing 20% and Eternal shares rising 11%, significantly outpacing local indexes and regional peers.