Zomato Stock Volatility: Investors React to "Eternal" Leadership Change

Zomato Stock Volatility: Investors React to “Eternal” Leadership Change

Corporate drama unfolded at Eternal (Zomato’s parent company) on January 21, 2026, when founder Deepinder Goyal announced his resignation as Group CEO and Managing Director. The move, effective February 1, hands day-to-day reins to Blinkit CEO Albinder Singh Dhindsa, while Goyal shifts to Vice Chairman role. In a stunning governance twist, Goyal is surrendering over ₹1,000 crore in unvested ESOPs (3.3 crore shares), returning them to the company’s pool to avoid future dilution — a rare founder-led sacrifice hailed by analysts as strengthening long-term employee incentives.

Goyal explained in a shareholder letter that he wants to focus on “higher-risk” ventures outside Eternal’s core, which isn’t feasible as CEO of a listed firm. He emphasized Blinkit as the “largest growth opportunity,” signaling confidence in Dhindsa’s leadership for quick-commerce expansion. The transition aims for “institutional scale,” with Goyal retaining strategic oversight.

The announcement triggered immediate stock volatility. On January 22 (yesterday), Eternal shares surged up to 7.34% in early trade, hitting ₹304.2 from a previous close of ₹283.4, reflecting initial optimism over the ESOP move and smooth succession. However, intra-day swings saw a 9.3% dip from the high to ₹276, closing up around 5% overall. Today (January 23), shares opened flat but remain choppy, trading in the ₹285–₹295 range amid broader market cues.

Investors are reacting mixedly. Bulls see it as a positive evolution: Goyal’s exit reduces “key-man risk,” Dhindsa’s Blinkit success (first positive EBITDA in Q3 FY26) promises growth, and the ESOP surrender avoids dilution pain. Eternal’s Q3 FY26 results showed 73% profit jump to ₹102 crore, with Blinkit turning EBITDA-positive at ₹22 crore — boosting confidence.

Bears worry about losing Goyal’s visionary drive, potential short-term execution hiccups, and broader sector pressures (food delivery slowdown, competition from Swiggy). The stock has doubled since listing but remains sensitive to leadership news.

Deepinder Goyal's decision to step down as CEO of Eternal and surrender unvested ESOPs worth over ₹1,000 crore is a masterstroke in corporate governance. It not only aligns with long-term shareholder value but also sets a new benchmark for founder-led companies in India. #Eternal #Zomato

— Rishi Negi (@rishinegi) January 23, 2026

Eternal stock volatility today after Goyal's CEO exit – up 7% then down 9%, closing +5%. Investors split: governance win or key-man risk? Blinkit growth key now. #Zomato #StockMarket

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— MoneyControl (@moneycontrolcom) January 22, 2026

Real-Time Analysis: What’s Driving the Swings

• Positive Catalysts: ESOP surrender seen as shareholder-friendly (Goldman Sachs calls it “extraordinary”). Blinkit’s Q3 positivity (revenue up 68%, EBITDA flip) under Dhindsa reassures. Eternal’s valuation at ~$15 billion reflects strong fundamentals.

• Volatility Triggers: News hit mid-week, sparking knee-jerk sells. Broader market sentiment (Nifty down 0.5% today on global cues) amplifies. Some fear Goyal’s “higher-risk” focus signals internal challenges.

• Sector Context: Food tech is maturing — Zomato profitable, but growth slowing. Quick-commerce (Blinkit) is the star, contributing 40%+ to value.

Future outlook: Analysts predict stabilization post-transition. Goldman targets ₹350+ (upside from current ₹290), citing Blinkit expansion. Risks: Execution slip-ups or macro slowdowns.

For investors: If bullish on quick-commerce, hold/buy dips. Traders: Watch volatility — RSI at 65 suggests overbought short-term.

This leadership shake-up is a test for Eternal’s maturity — drama yes, but long-term positive if executed well.