Eternal Shares Rise 3% After Zomato Platform Fee Hike | Stock Market Update

Shares of Eternal Limited rose as much as 3% Friday, rebounding from intraday lows, following a platform fee increase by its food delivery subsidiary, Zomato. The move underscores the delicate balance between profitability and customer retention in India’s competitive food delivery market and highlights investor sensitivity to even incremental changes at the company.

Zomato’s Fee Adjustment and Market Response

The platform fee, now Rs 14.90 per order (excluding GST) – up from Rs 12.50 – represents a Rs 2.40 increase. According to a report by ET Tech, What we have is the second such hike in roughly six months. the previous adjustment occurred in September 2025. Zomato’s primary competitor, Swiggy, currently charges a platform fee of Rs 14.99, inclusive of taxes, suggesting a pattern of parallel pricing strategies between the two dominant players.

The increase triggered a positive, though moderate, reaction from investors. Eternal shares climbed to a high of Rs 236.70 on the National Stock Exchange (NSE) from a low of Rs 230.10 during the trading session. Trading volume was substantial, with over 5.5 crore shares changing hands, representing a traded value of approximately Rs 1,293 crore. The stock ultimately closed at Rs 232.41, a gain of Rs 3.67, or 1.60%, over the previous day’s closing price of Rs 228.74.

Broader Financial Picture at Eternal Limited

While the Zomato fee hike provided a short-term boost, Eternal Limited’s recent financial performance reveals a more complex picture. The company reported a 73% year-over-year increase in consolidated net profit to Rs 102 crore. Revenue from operations surged 201% year-over-year to Rs 16,315 crore. However, a significant portion of this revenue growth is attributable to an accounting change related to its quick commerce arm, Blinkit. The company now recognizes the full value of goods sold in its quick commerce business, rather than solely recording marketplace commissions. Like-for-like revenue growth, excluding the accounting shift, was 64% year-over-year.

Consolidated EBITDA increased 28% year-over-year to Rs 364 crore, and 63% quarter-over-quarter. Within the food delivery business, adjusted revenue rose 26% year-over-year to Rs 2,413 crore. Net Order Value (NOV) increased 17% year-over-year, accelerating from 13.8% growth in the previous quarter. Gross Order Value (GOV) growth for the third quarter stood at 21% year-over-year.

Competitive Pressures and New Entrants

The platform fee adjustments occur against a backdrop of increasing competition in the food delivery sector. Urban mobility startup Rapido recently launched its food delivery service, Ownly, in Bengaluru, differentiating itself by promising to forgo additional fees beyond delivery charges. This move could put pressure on Zomato and Swiggy to reconsider their fee structures or explore alternative revenue models. The competitive landscape is further complicated by the broader economic climate and consumer sensitivity to price increases.

Investor Concerns and Stock Performance

Despite recent gains, Eternal shares have experienced a significant correction over the past six months, declining 30%. This underperformance contrasts with the Nifty and BSE Sensex, which have declined 9% and 10%, respectively, during the same period. As of January 26, 2026, the stock was trading below its 50-day and 200-day simple moving averages (SMAs) of Rs 265 and Rs 291, respectively, according to data from Trendlyne. The Economic Times reported that the stock was the most active on the NSE, with volume indicating strong trader focus.

What’s Next for Eternal and Zomato

The coming months will be crucial for Eternal Limited as it navigates a challenging competitive environment and seeks to maintain profitability. Key areas to watch include Zomato’s ability to sustain order volume growth following the platform fee increase, the impact of Rapido’s entry on market share, and the overall health of the Indian consumer economy. Investors will also be closely monitoring Eternal’s performance in its quick commerce segment, Blinkit, and its ability to leverage the accounting changes to drive sustainable revenue growth. Further regulatory scrutiny of platform fees within the food delivery sector remains a possibility, potentially influencing future pricing strategies.

The next quarterly earnings report will provide further insight into these trends and the company’s overall trajectory. TechStock² provides ongoing coverage of Eternal Limited’s share price and financial performance.