Zomato’s parent company Eternal has rolled out a significant round of employee stock options (ESOPs), granting 64.13 lakh equity shares under its multiple stock option plans. The approval came from the company’s Nomination and Remuneration Committee, covering the Foodie Bay ESOP Plan 2014, Zomato ESOP Plan 2021, and the latest Zomato ESOP Plan 2024.
At Eternal’s current market price of Rs 330 per share, the new ESOP allocation is valued at nearly Rs 211 crore, making it one of the company’s largest employee rewards in recent quarters. This follows an earlier grant of 10.13 lakh ESOPs worth about Rs 33 crore under the 2021 plan.
The move underscores Eternal’s strategy to retain and reward top talent at a time when India’s food delivery and quick commerce sector is becoming increasingly competitive. ESOPs continue to be a key tool for startups and listed new-age companies to align employees with long-term growth.
On the market front, Eternal also saw significant activity this week. Bank of America’s investment banking arm (BoFA Securities Europe SA) acquired 8.2 million shares of Eternal in a Rs 267 crore bulk deal, purchasing them at Rs 325.5 apiece from Goldman Sachs Bank Europe SE.
Financially, the company reported strong topline growth in the first quarter of FY26. Revenue from operations surged 70% to Rs 7,167 crore, compared to Rs 4,206 crore in Q1 FY25. However, profits took a sharp hit, dropping 90% year-on-year to Rs 25 crore, down from Rs 253 crore in the same quarter last year.
Final Take: Eternal’s latest ESOP allocation signals continued confidence in its growth path, even as profitability pressures persist. With investors and employees both showing faith, the next few quarters will be key in balancing scale with sustainable earnings.
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