Zomato Parent Eternal Grants ₹211 Crore in ESOPs to Employees

Zomato’s parent company, Eternal Ltd., has approved a fresh grant of employee stock options (ESOPs) worth approximately INR 211 crore, covering 64.13 lakh equity shares. The allotment aims to reward and retain key talent amid a competitive market.

Details of the ESOP Allotment

The Nomination and Remuneration Committee of Eternal approved the grant under three schemes: the Foodie Bay Employee Stock Option Plan 2014, Zomato Employee Stock Option Plan 2021, and Zomato Employee Stock Option Plan 2024. The largest allocation was made under ESOP 2021, followed by ESOP 2024, while a minimal number of options were granted under the 2014 plan. Each option carries an exercise price of ₹1 per share, convertible into fully paid equity shares.

With Eternal’s current share price around INR 330, the new options are valued at INR 211 crore. Earlier this year, the company granted 10.13 lakh options under ESOP 2021, worth around INR 33 crore.

Financial Performance Context

In the first quarter of FY26, Eternal’s revenue from operations surged 70% to INR 7,167 crore, up from INR 4,206 crore in the same quarter last year. However, the company’s profit fell sharply, down 90% to INR 25 crore compared with INR 253 crore in Q1 FY25. Despite this, Eternal’s stock continues to trade around INR 330, giving it a market capitalisation of over INR 3.19 lakh crore.

Strategic Implications

The ESOP grant reflects Eternal’s strategy to align employee incentives with company performance, supporting retention and motivation. The move is especially significant given the company’s rapid expansion and competitive pressures in the Indian foodtech and delivery market.

Zomato Expands ESOP Pool with 4.17 Crore Stock Options

Zomato increases its ESOP pool by adding 4.17 crore stock options, aiming to enhance employee benefits and retain top talent in the competitive market.

StartupTalky- Business News, Insights and StoriesNitin Konde