Eternal Ltd., the parent company of Zomato, has approved a fresh round of employee stock options (ESOPs) valued at approximately ₹211 crore.
The grant covers 64.13 lakh equity shares under three distinct ESOP plans and is part of the company’s ongoing strategy to incentivize and retain key talent amid a competitive market environment.
The Nomination and Remuneration Committee of Eternal sanctioned the allotment under the Foodie Bay Employee Stock Option Plan 2014, Zomato Employee Stock Option Plan 2021, and Zomato Employee Stock Option Plan 2024.
Each option is convertible into one equity share of face value ₹1 at an exercise price of ₹1 per share.
Breakdown of Eternal ESOP Allocation and Market Valuation
At Eternal’s current share price of ₹330, the total value of the newly granted ESOPs stands at ₹211 crore.
This follows a previous ESOP allotment in July 2025, where the company issued 10.13 lakh options worth ₹33 crore under the 2021 plan.
The 2021 and 2024 plans received the bulk of the allocation, while the 2014 scheme saw minimal grants.
These options are considered highly attractive due to their low exercise price and potential for capital gains, especially as Eternal’s stock continues to perform steadily in the market.
Eternal Makes Strategic Use of ESOPs Amid Financial Volatility
Eternal’s move comes at a time when the company is navigating mixed financial results.
In Q1 FY26, Eternal reported a 70% year-on-year increase in operating revenue, reaching ₹7,167 crore, up from ₹4,206 crore in the same quarter last year.
However, net profit declined sharply by 90%, falling to ₹25 crore from ₹253 crore in Q1 FY25.
Despite the drop in profitability, Eternal’s market capitalization remains robust at over ₹3.19 lakh crore, and its shares have risen nearly 19% year-to-date.
The ESOP grant is seen as a strategic move to align employee interests with long-term shareholder value.
Institutional Interest Signals Confidence
On the same day as the ESOP announcement, BoFA Securities Europe SA, the investment banking arm of Bank of America, acquired 8.2 million shares of Eternal in a bulk deal.
BoFA Securities Europe SA purchased the shares from Goldman Sachs Bank Europe SE at ₹325.5 per share, amounting to a transaction value of nearly ₹267 crore.
This institutional activity underscores growing investor confidence in Eternal and its subsidiaries, including Zomato and Blinkit.
ESOPs as a Retention and Motivation Tool
Companies in the competitive foodtech and quick commerce sectors increasingly use ESOPs to retain top talent.
Eternal’s latest grant reinforces its commitment to building a motivated workforce with a direct stake in the company’s performance.
Earlier this year, Blinkit founder Albinder Dhindsa also led a significant ESOP exercise, further highlighting the group’s focus on employee ownership.
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