Eternal share price plunges over 5%; four possible reasons why the stock slid on February 24

In the intraday session, the S&P BSE SENSEX crashed over 1,000 points, while the NSE's NIFTY50 index slipped below the 25,500 mark.

Many NIFTY50 companies' stocks traded with significant losses. Among the losers was Eternal, which tumbled over 5% during the session.

Eternal shares ended 5.22% lower at ₹254 apiece on the NSE.

Deepinder Goyal's focus on other businesses

According to media reports, one of the reasons behind the sharp decline in Eternal’s stock may be investor concerns that Zomato founder Deepinder Goyal is increasingly focusing on other ventures.

Latest updates show that LAT Aerospace, founded by Deepinder Goyal and Zomato's former COO Surobhi Das, has acquired Sharang Shakti, an early-stage defence robotics startup based in Gurugram, to build shared technology for sensing, navigation, and control systems.

In a post on X on Tuesday, Goyal stated that the intent is to build in-house capabilities and deploy them across both defence and civil programmes over time.

Goyal resigned as the managing director and group CEO of Eternal -- parent entity of Zomato and Blinkit -- last month to pursue what he termed "new ideas that involve significantly higher-risk exploration and experimentation".

He was appointed as the Vice Chairman of Eternal.

Zepto IPO soon

Another reason could be increasing competition in the listed space, as quick commerce unicorn Zepto is planning to launch its initial public offering (IPO) in 2026. In late December 2025, Zepto filed preliminary papers with markets regulator SEBI to raise ₹11,000 crore through its IPO using a confidential route.

The company is targeting a stock market listing sometime in 2026, a move that could make it one of the youngest startups to debut on Indian exchanges.

If the listing goes through, Zepto will join its rivals Zomato and Swiggy, both of which are already listed on the exchanges.

Weak sentiment

AI disruption is not a direct core risk to Eternal’s business model right now — but sentiment spillover can impact the stock.

Eternal (Zomato’s parent entity) operates primarily in food delivery, quick commerce, and related consumer internet services.

AI disruption fears have largely been centred around IT services, software, and tech infrastructure companies. However, when tech stocks fall on AI fears, investor sentiment toward high-growth internet companies can weaken.

Valuation concerns

Valuation concerns also weighed on Eternal, as the stock trades at a price-to-earnings (P/E) ratio of over 1,000, indicating that investors are paying a steep premium relative to its current earnings. Such elevated valuations often make a stock vulnerable to selling pressure, particularly during periods of broader market uncertainty or negative news flow.