Shares of Eternal Dip 4.88% Following CEO Change and ESOPs Surrender

Eternal, the parent company of Zomato, experienced a significant decline in its share price, dropping by 4.88% to Rs. 262.45 on January 23, 2026. This downturn followed an initial surge of 7% after the announcement of CEO Deepinder Goyal‘s resignation. Goyal’s decision to step down was accompanied by his surrender of employee stock options (ESOPs) valued at approximately Rs. 912 crore, which will expand the company’s stock option pool.

Despite the leadership transition, Eternal reported strong financial results for the third quarter of the fiscal year 2026 (Q3 FY26). The company’s net profit reached Rs. 102 crore, reflecting an impressive 72.88% year-on-year increase. Revenue from core operations surged to Rs. 16,135 crore, marking a threefold increase compared to Rs. 5,405 crore in the same quarter last year.

Market Reaction and Stock Performance

The decline in Eternal’s share price occurred amid investor caution following Goyal’s resignation and the quarterly results. The stock opened at Rs. 276.95, peaked at Rs. 277.00, and dipped to a low of Rs. 261.70 during intraday trading. The trading volume reached over 46.5 million shares, with a market capitalisation of Rs. 2.52 lakh crore. At the time of writing, the share price was hovering just above its lower circuit limit of Rs. 248.35, while analysts noted a beta of 1.31, indicating moderate volatility relative to the market.

Analysts provided mixed assessments of Eternal’s stock. According to data from Moneycontrol, 71% recommended a ‘Buy’ rating, while 19% suggested it was an ‘Outperform’ investment, and 10% advised a ‘Sell’.

Leadership Changes and Future Outlook

In a post on social media platform X, Goyal explained his reasons for resigning. He indicated that his interests in pursuing high-risk ventures were not aligned with the responsibilities of a publicly listed company. Goyal expressed a desire to explore innovative ideas in fields such as health tech and aerospace, which are outside the scope of a food delivery business. By transitioning to the role of Vice Chairman, he aims to allow a more hands-on manager to oversee daily operations while he focuses on future innovations.

Effective February 1, 2026, pending shareholder approval, Albinder Singh Dhindsa, the former CEO of Eternal’s Blinkit division, will assume the role of CEO. This leadership change is intended to ensure a smooth transition while maintaining continuity in the company’s operations.

Eternal’s recent quarterly results indicated robust growth despite the changes in leadership. The company’s EBITDA rose by 127.16% to Rs. 368 crore, although profit margins contracted slightly by 70 basis points to 2.3%. Analysts had expected margins of 2.1%.

Experts suggest that the maturation of Eternal from a “startup run by its founder” to a “large company run by professional managers” could benefit the market in the long run. This shift is seen as vital for balancing stability and innovation, particularly in the competitive landscape with rivals like Swiggy.

As investors monitor the company’s performance under new leadership, the focus will remain on how Dhindsa manages growth while ensuring shareholder value is sustained. The future of Eternal’s share price will depend on the effectiveness of this balance between operational efficiency and innovative exploration.