Upgrades

With a 7% upside from the CMP, we maintain our HOLD rating.

Shoppers Stop’s (SHOP) revenue growth accelerated to 10% YoY in 2QFY26 (vs. +6% YoY in 1Q), led by a 10-year high LFL of ~9.4% in departmental stores and ~70% YoY growth in INTUNE (driven primarily by store additions).

Metro Brands (MBL) delivered in-line 11% YoY revenue growth in 2Q, driven by an improvement in in-store sales (+10% YoY vs. 4% YoY in 1Q), acceleration in store additions, and robust 39% YoY online growth.

Eternal reported better-than-expected revenue growth, aided by strong NOV growth in Quick Commerce (QCom, 137% YoY) and accelerated shift to owned inventory model.

we maintain our HOLD rating on the stock

Eternal reported a 2QFY26 net revenue of INR135b (+90% QoQ/183% YoY). This high growth is mainly on account of shift to inventory ownership in quick commerce (Q-commerce), where revenue now also includes the full monetary value of goods sold as per Ind AS (and not just the marketplace commission).

With a 15% upside from the CMP, we maintain a BUY rating on the stock

We upgraded Swiggy to BUY (see our report dated, 4th September, Internet: A buffet of tailwinds), reflecting an inflection in growth of the food delivery (FD) business and improved unit economics in the quick commerce (QC) business.

Dmart’s Q2FY26 results were in line and soft. Standalone Rev/GP/EBITDA/APAT came in at 15.4/15.9/11.3/5.1% YoY. We believe Rev was impacted by monsoons, store cannibalization, shift to Qcom and price deflation.

We interacted with the management of Aditya Birla Fashion and Retail (ABFRL) to discuss the growth prospects and profitability outlook for the company’s various segments and other focus areas.

Amazon Now, the quick commerce (QCom) business of Amazon, has now expanded to Mumbai, after Bengaluru and Delhi.

We reiterate BUY on Metro, while revising up our TP by ~14% to Rs1,475 (60x Sep-27E pre-IndAS EPS). The change in TP is led by near-equal contribution from upward revision of estimates and earnings rollover.

Quarterly Update Q1FY26

Relaxo Footwears’ (RLXF) 1QFY26 results reflect persistent volume pressure amid restructuring of distribution, muted demand and heightened competition.

We attended Avenue Supermarts (DMart)’s FY25 analyst meet, wherein the management indicated acceleration in store additions as the utmost priority.

D-Mart's annual analyst call reinforced our cautious stance due to 1) Rising land acquisition costs, increasing wage inflation, and a deteriorating product mix which can further pressurize margins in the near to medium term. 2) Structural challenges persist in the apparel segment. 3) stiff competition from quick commerce players (more in top 20 cities). And 4) little visibility on D-Mart...

Eternal Limited is poised for long-term growth and improved profitability, driven by its strong market position and growth prospects in the quick commerce business (QCB). The company's focus on inventory ownership and margin improvement is expected to drive profitability. Although the industry outlook remains competitive, the company's strategy and long-term growth objectives, along with its strong management team, are expected to drive future growth. However, the stock's significant run-up in price and rich valuations limit the upside potential from current...

We believe competitive intensity is likely to see near-term volatility. Hence, we maintain our HOLD rating on the stock.

Blinkit’s adj. EBITDA margin (% of NOV) improved ~60bps QoQ in Q1FY26 despite adding 243 stores (ISec est.: 220) with steady take rate and contribution margin.

Eternal reported 1QFY26 revenue of INR72b, up 70% YoY, above our estimated growth of 62% YoY. Growth was led by Blinkit as its gross order value (GOV) increased 26% QoQ/140% YoY.