Eternal Ltd, the parent company of Zomato and Blinkit, has taken a significant step to reward its employees by granting 64.13 lakh stock options worth approximately ₹211.28 crore. This move demonstrates the company’s commitment to acknowledging the contributions of its workforce while also encouraging long-term loyalty. Stock options are an essential tool in the startup ecosystem, offering employees the chance to own a part of the company at a predetermined price, which can become extremely valuable if the company’s market value increases over time.
Eternal Ltd’s ESOP Journey
The stock options granted by Eternal Ltd are part of three employee stock option plans introduced at different stages of the company’s growth. The first, Foodie Bay ESOP 2014, contributed 72,000 options. The second, Zomato ESOP 2021, accounted for 41.2 lakh options, while the recently introduced Zomato ESOP 2024 added 22.9 lakh options. Each option allows employees to buy one share of the company at a nominal price of just ₹1, offering a tremendous opportunity to gain financially if the company’s shares rise in value. By providing these options, Eternal Ltd is not only motivating its existing employees but also creating an attractive package for future talent seeking to join the organization.
Retention in a Competitive Market
Stock options are more than just financial incentives. They are a way for companies to show trust in their employees and align their interests with the company’s long-term growth. By offering stock options, Eternal Ltd ensures that employees feel a sense of ownership and responsibility for the company’s performance. This strategy also helps retain skilled professionals in a highly competitive market where talent often shifts between companies. In 2025 alone, Eternal has granted approximately 5.59 crore stock options, underlining its consistent focus on employee engagement and satisfaction.
Revenue Growth vs Profit Dip
While Eternal Ltd continues to expand its business, the company has faced mixed financial results. During the April-June 2025 quarter, its operating revenue surged over 70% to ₹7,167 crore compared to ₹4,206 crore in the same period last year. However, net profit during the same quarter fell sharply by over 90%, dropping to ₹25 crore from ₹253 crore a year ago. Despite this decline in profit, the company’s decision to grant stock options reflects its confidence in long-term growth and its commitment to keeping employees motivated even during challenging financial periods.
Strategic Workforce Investment
For employees, these stock options offer a chance to benefit directly from the company’s future success, turning their efforts into tangible financial gains. For Eternal Ltd, this initiative is a strategic move to maintain a motivated, loyal, and high-performing workforce. It also signals to the broader market that the company values its people and is investing in its human capital. As startups continue to play a pivotal role in India’s tech and food delivery sectors, such initiatives set a strong precedent for how companies can balance growth, employee satisfaction, and long-term sustainability.
In conclusion, Eternal Ltd’s stock option grant is a win-win for both employees and the company. It rewards hard work, encourages long-term commitment, and strengthens the company’s foundation for continued growth in the competitive startup landscape.