In a significant move that underlines its commitment to employee empowerment, Eternal Ltd, the parent company of food delivery giant Zomato and quick-commerce platform Blinkit, has granted employee stock options (ESOPs) valued at ₹224 crore. This development, announced through recent stock exchange filings, showcases Eternal’s strategy to strengthen talent retention and align its workforce with long-term business growth objectives.
Overview of The ESOP Grant
Eternal’s Nomination and Remuneration Committee approved the issuance of 64,13,217 stock options across three major plans: the Foodie Bay ESOP 2014, the Zomato ESOP 2021, and the recently introduced Zomato ESOP 2024. Each stock option, issued at an exercise price of ₹1, is fully convertible into one equity share of face value ₹1.
The total grant, valued at approximately ₹224 crore, is based on Zomato’s National Stock Exchange opening price of ₹326.2 per share at the time of announcement. After adjustments under the respective stock option schemes, these grants represent 68,95,545 equity shares, making it one of the largest ESOP distribution rounds by an Indian tech-backed firm in 2025.
Key Details:
Key Business Verticals and Contribution
Structure and Duration of the ESOP Plans
ESOPs are typically structured to reward performance and loyalty, and Eternal’s approach reinforces that ideology. According to the filings, the ESOP 2014 and 2021 series can be exercised within 10 years from vesting or 12 years from the date of listing, whichever comes later. The ESOP 2024 plan carries a 10-year exercise period following the vesting date.
This structure effectively enables employees to benefit from Zomato’s medium- to long-term equity performance, incentivising retention and fostering a sense of shared ownership in the company’s success.
A Continuation of Eternal’s Reward Strategy
This ₹224 crore ESOP grant follows earlier tranches issued during the current fiscal year. In April 2025, Eternal allotted stock options valued at ₹4.42 crore under the 2014 and 2021 ESOP plans. A few months later, in July 2025, an additional 64.77 lakh options were issued under the same schemes, valued at around ₹168 crore.
These progressive allotments highlight Eternal’s sustained commitment to compensating and retaining talent amid rapid transformation across both Zomato and Blinkit.
Why This Move Matters for Employees
The ₹224 crore ESOP announcement is more than just a financial incentive; it symbolises Eternal’s evolving work culture. Zomato and Blinkit have grown into high-intensity businesses that require continual innovation, operational efficiency, and consumer trust. ESOPs help cultivate a “founder mindset” across the workforce, encouraging employees to think beyond salaries and benefit from long-term value creation.
For Zomato’s employees, who have witnessed the company’s volatile yet rewarding market journey, this initiative offers the promise of real participation in India’s rapidly growing tech economy.
Strategic Timing Amid Market and Policy Shifts
The decision to issue substantial ESOPs comes at a pivotal time for Zomato. The firm is navigating critical regulatory and operational adjustments, especially following a new tax ruling requiring an 18 per cent GST on delivery fees charged to customers. Under this rule, a typical ₹40 delivery fee now attracts an ₹7.20 tax, raising consumer costs unless platforms absorb the burden.
In response, Zomato has also increased its platform fee to ₹12 per order, up from ₹10 earlier this year, as it aims to balance profitability against rising operational expenses. Since the introduction of platform fees in 2023 at ₹2 per order, successive adjustments have helped the company stabilise its margins amid growing competition and higher wage costs.
Eternal’s Broader Vision and Zomato’s Performance
Eternal’s broader financial strategy appears to merge business resilience with workforce motivation. Despite a dip in profit margins, Zomato’s business fundamentals remain solid. Eternal’s operating revenue grew 70 per cent year-on-year to ₹7,167 crore in Q1 FY26, up from ₹4,206 crore in the same quarter last year. However, its consolidated net profit fell to ₹25 crore, compared with ₹253 crore a year earlier, primarily due to marketing reinvestments and the expansion of Blinkit’s fulfilment infrastructure.
Yet, the company’s stock has demonstrated resilience, rising around 19 per cent year-to-date, reflecting investor confidence in Eternal’s long-term growth. This positive sentiment is bolstered by the company’s continued innovation, diversification across food delivery and quick commerce, and strategic use of technology to drive operational efficiency.
Industry Context and Competitive Landscape
Eternal’s significant ESOP issuance mirrors a broader trend among Indian tech startups and listed firms. ESOPs have become a defining tool for attracting, retaining, and rewarding skilled professionals, particularly in an era marked by layoffs and global economic uncertainty.
Rival firms are following suit. Swiggy, for instance, recently allotted 38.8 lakh equity shares under its ESOP structure. Similar talent-centric moves have been reported at Nykaa and BlackBuck this year. As competition tightens, Eternal’s employee-first approach could further reinforce Zomato’s employer brand and industry positioning.
Implications for Investors and Market Outlook
For investors, Eternal’s move signals steady governance and long-term stability. ESOP schemes do involve share dilution, but they also align employee and shareholder interests, improving productivity and reducing attrition.
Moreover, as the company expands its quick-commerce arm, Blinkit, and strengthens its restaurant partnerships, these stock option grants could serve as a retention lever, preserving institutional knowledge within high-skill teams.
Market analysts interpret this grant as a signal of confidence; Eternal appears financially robust enough to reward employees generously while maintaining capital efficiency. It also reflects the growing maturity of Indian tech firms in adopting global-standard incentive mechanisms.
Looking Ahead
As Eternal continues refining its operations across Zomato and Blinkit, the company’s focus on rewarding employees through stock-based incentives is expected to deepen. Future grants might expand eligibility to a broader range of employees, further democratising ownership within the company.
The alignment of employee rewards with long-term performance metrics also reaffirms Eternal’s transformation from a fast-scaling startup to a mature, publicly accountable enterprise focusing on sustainable growth.
While short-term profit margins may fluctuate due to changing tax and business conditions, Eternal’s sustained commitment to innovation and employee welfare positions it strongly for the next phase of India’s digital economy.
