Eternal Shares Drop 4.88% Following CEO Goyal’s Resignation

Shares of Eternal, the parent company of Zomato, experienced a significant decline of 4.88% today, dropping to Rs. 262.45. This decline followed an initial surge of 7% after CEO Deepinder Goyal announced his resignation. Goyal’s decision includes surrendering employee stock options (ESOPs) valued between Rs. 900 crore and Rs. 1,000 crore, aimed at expanding the company’s stock option pool.

The market reacted with caution, reflecting investor sentiment after Goyal’s departure and the company’s latest quarterly performance. During intraday trading, Eternal’s stock fluctuated, opening at Rs. 276.95, reaching a high of Rs. 277.00, and dipping to a low of Rs. 261.70. The trading volume exceeded 46.5 million shares, with a market capitalisation of Rs. 2.52 lakh crore.

Leadership Transition and Financial Performance

In a strategic shift, Goyal will transition to the role of Vice Chairman, allowing Albinder Singh Dhindsa, former CEO of Eternal’s Blinkit division, to step into the CEO position, effective 1 February 2026, pending shareholder approval. Goyal’s resignation comes as he expressed a desire to pursue higher-risk ventures outside the food delivery sector, suggesting that his aspirations for innovation no longer aligned with the responsibilities of leading a public company.

During this period of transition, Eternal reported robust financial results for the third quarter of fiscal year 2026 (Q3 FY26). The company posted a consolidated net profit of Rs. 102 crore, marking a remarkable 72.88% increase compared to Rs. 59 crore in the same quarter the previous year. Revenue surged to Rs. 16,135 crore, more than tripling from Rs. 5,405 crore in Q3 FY25. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 127.16% to Rs. 368 crore.

Despite these strong results, the profit margins contracted slightly by 70 basis points to 2.3%. While net profit fell short of Bloomberg analysts’ estimates of Rs. 115 crore, revenue came close to the projected Rs. 16,224 crore.

Market Reaction and Future Outlook

The fluctuation in Eternal’s stock price reflects ongoing investor caution. As of now, the shares are trading near the lower circuit limit of Rs. 248.35 and are below the 52-week high of Rs. 368.45. The stock’s beta is recorded at 1.31, indicating moderate volatility compared to the market. Analysts remain cautiously optimistic, with 71% recommending a ‘Buy’ rating for the stock, while 19% advised it as an ‘Outperform’ and 10% suggested a ‘Sell’.

Goyal’s decision to surrender unvested ESOPs valued at approximately Rs. 912.45 crore will expand the company’s ESOP pool by 3.3 crore shares. This move is intended to enhance long-term retention incentives without immediate dilution for shareholders.

Experts suggest that the leadership changes at Eternal represent a maturation from a startup mentality to a more structured corporate governance model. This shift aims to maintain a balance between innovation and stability, essential for competing against rivals like Swiggy. Investors will be closely monitoring how the new CEO manages growth and shareholder value in the coming months.

In summary, while Eternal faces challenges with its stock performance post-resignation, the company’s strong financial results and strategic leadership changes suggest a potentially bright future ahead.