Eternal Limited (formerly known as Zomato Limited) has announced the approval of 7,418,741 stock options under its Employee Stock Option Plans (ESOP) to eligible employees. The Nomination and Remuneration Committee of the company approved these grants through a circular resolution on April 1, 2026.

Stock Option Distribution Across ESOP Schemes

The stock options have been allocated across three different ESOP schemes operated by the company:

The largest allocation of 5,616,479 options was made under the newest ESOP 2024 scheme, while ESOP 2021 received 1,802,224 options and the legacy ESOP 2014 scheme was allocated 38 options.

Key Terms and Exercise Details

Each stock option is convertible into one fully paid-up equity share having a face value of ₹1. The total coverage amounts to 7,673,303 equity shares of face value ₹1 each, which includes requisite adjustments pursuant to corporate actions as provided under the ESOP schemes.

Exercise Timeline and Conditions

The exercise periods vary depending on the ESOP scheme:

• ESOP 2014 and ESOP 2021: Stock options can be exercised within 10 years from the date of vesting or 12 years from the date of listing, whichever is later
• ESOP 2024: Stock options can be exercised within 10 years from the date of vesting

The schemes include provisions for handling stock options in various employment scenarios including death, permanent incapacity, resignation, termination, retirement, and abandonment. Importantly, the equity shares allotted upon exercise of the stock options will not be subject to any lock-in restrictions.

Regulatory Compliance

The grants comply with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, and the disclosure has been made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also referenced SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, in its compliance documentation.

Kotak Securities has issued a Buy rating for eternal with a target price of Rs 375, highlighting the company's strategic approach to managing rising operational costs through platform fee adjustments.

Strategic Fee Structure Implementation

The brokerage firm's analysis focuses on Eternal's implementation of platform fee hikes as a key strategy to counter increasing operational expenses. The company faces mounting costs across multiple operational areas including packaging materials, delivery distance optimization, and fuel expenses.

Industry Impact and Market Dynamics

Kotak Securities anticipates potential industry-wide adoption of similar fee structures, suggesting that other market participants may follow Eternal's approach to cost management. This industry follow-through could create a more sustainable pricing environment across the sector.

The analysis indicates that expanding delivery radius operations, combined with strategic fee adjustments, positions the company to maintain segment contribution margins despite rising operational pressures. The broader delivery network could enhance operational efficiency while supporting revenue growth through increased market coverage.

Operational Cost Management

The company's approach addresses three primary cost drivers affecting operational efficiency:

• Packaging costs: Rising material and logistics expenses
• Distance optimization: Delivery route efficiency and coverage expansion
• Fuel expenses: Transportation cost management across operations

The strategic fee implementation aims to create a sustainable cost structure that can adapt to ongoing operational challenges while maintaining competitive market positioning.