Elara Capital analysts assert that Eternal is better equipped than Swiggy to handle rising fuel costs, primarily due to its premium customer base and larger scale. They maintain a 'Buy' rating for both companies, setting target prices of ₹400 for Eternal and ₹360 for Swiggy, despite potential cost pressures from fuel price hikes.

• 01Eternal's customer base is described as more premium and less price-sensitive, allowing for better recovery of cost increases.
• 02The recent fuel price hike of ₹4 per litre translates to a 4% rise in petrol and diesel prices.
• 03Analysts estimate an average delivery cost of ₹45 for Eternal and ₹55 for Swiggy, with fuel accounting for ₹9-10 per order.
• 04A potential further increase in fuel prices to ₹10 per litre could raise the per-order impact to ₹1-1.2.
• 05Elara warns of second-order impacts on consumption and spending due to sustained fuel inflation.

The rising fuel prices could lead to increased delivery costs, affecting both consumer spending and the profitability of delivery platforms.