Eternal Limited has announced the dissolution of its step-down subsidiary Zomato Netherlands B.V., marking the completion of a corporate restructuring process that began earlier in 2025.

Dissolution Details

The subsidiary dissolution became effective on January 27, 2026, with the company receiving official confirmation on February 5, 2026. Eternal Limited disclosed this information to both BSE and NSE on February 6, 2026, in accordance with Regulation 30 of the SEBI Listing Regulations.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Sandhya Sethia signed the communication from the company's Gurugram office.

Previous Communications

This announcement follows an earlier intimation dated April 9, 2025, suggesting the dissolution process had been initiated several months prior to its completion. The company has made the disclosure information available on its official website at www.eternal.com .

Corporate Identity

Eternal Limited, formerly known as Zomato Limited, trades on Indian stock exchanges with scrip code 543320 on BSE and symbol ETERNAL on NSE. The company's ISIN is INE758T01015.

Eternal faces potential stock volatility following an unexpected leadership transition, despite reporting sequential improvement in operating margins, according to Dharmesh Kant, Head of Equity Research at Cholamandalam Securities. The analyst warned that Deepinder Goyal's sudden departure from his executive role could trigger negative market sentiment in the near term.

Leadership Change Creates Market Uncertainty

Kant emphasized that the unexpected nature of the leadership transition may unsettle investors, particularly given its timing alongside earnings results and the company's ongoing path to sustained profitability. "Had this been a planned, well-laid transition, the reaction could have been different. Coming mid-journey on profitability, the market is likely to take this with a negative tinge," he stated, predicting the stock could open lower in the next trading session.

Financial Performance Shows Mixed Results

The company's latest quarterly performance presented a mixed picture, with revenue meeting expectations while profit after tax disappointed due to higher other expenses and reduced other income contribution.

Kant noted that operating profit remains the more relevant metric at this recovery stage, highlighting the significant gap between topline growth and profitability improvement over the nine-month period.

Quick Commerce Challenges Persist

The quick commerce segment, now representing over 70% of Eternal's business mix, continues to be the primary drag on profitability. "Cash burn in quick commerce is happening at a faster pace, which is restricting operating profit growth, even though food delivery continues to perform well," Kant explained, adding that valuations remain expensive despite sequential improvements.

Blinkit Performance Offers Cautious Optimism

Blinkit's adjusted EBITDA reaching zero as a percentage of net order value provided a positive surprise, exceeding market expectations of continued losses. The platform's net average order value rose to ₹547, marking a one-year high.

However, Kant cautioned against reading too much into a single quarter's performance, citing aggressive expansion by Amazon and Flipkart, along with Swiggy's defensive capital deployment. "It is too early to call this an inflection point," he warned, expressing skepticism about sustained profitability materializing over the next three to four years.

Trading Outlook and Investment Stance

Kant expects initial negative reaction but sees potential for short-term trading opportunities. "If the stock opens 3–5% lower, it could offer a trading opportunity for a 5–10% bounce," he suggested, while emphasizing this represents strictly a short-term trading perspective.

From a long-term investment standpoint, the analyst remains cautious and negative on the broader quick commerce and food delivery space, citing persistent competitive intensity and high cash burn as ongoing concerns for sustainable profitability.