Eternal Faces Market Test After Deepinder Goyal’s CEO Exit

Shares of Eternal, the parent company of Zomato and Blinkit, are expected to be in focus after founder Deepinder Goyal stepped down from the chief executive role. The announcement triggered a debate on whether the leadership change can still hold the stock performance of one of the highest valuation new-age companies. 

Market analysts, however, remain divided on whether Goyal’s move will leave an impact on the Eternal stock price. Some experts say the transition will have “little to no” impact on Eternal’s share price, while others suggest it could lead to short-term volatility until execution and performance. 

They also pointed out that Goyal has not exited the business; he will continue as vice chairman and remains on the board. “Since he is still actively associated with the company, both in the short and long term, the impact should be limited,” the experts say. 

The transition will come into effect from February 1, 2026. 

Short-term Jitters

In the short term, Equinomics Research founder Chokkalingam G believes that it can affect investor confidence, largely because of the balance sheet and margins. 

"Return ratios have come down, and while quick commerce growth is phenomenal, its margins are very thin. This has pulled the overall margin down to around 2.3%, which means that the top-line growth is not translating into bottom-line improvement,” he says. 

This margin pressure, Chokkalingam adds that is a concern, especially when return ratios and margins are already low.

Yet, the analyst does not see the leadership transition as a “deal-breaker” for long-term investors. “Revenues have jumped nearly three times, and there is hope that over time the company can improve margins and turn things around. So while near-term concerns exist, there is still optimism around scale and future profitability”. 

He drew a parallel with earlier leadership exits at large Indian IT companies like Infosys. “...the stock initially crashed 30-40%, but later doubled. Similar patterns were seen in other large institutions. Zomato has already reached that institutional scale. So there may be a marginal impact, but not a devastating one”.

Blinkit at Centre

Brokerage firms view Goyal’s decision less as an exit but more as a strategic reallocation of leadership focus because the company has positioned Blinkit as the bigger part of the business. 

“If you’re looking at the short term, there may be some sentimental impact, but I don’t think it will really change the overall perception. This is a decision based on strategic considerations,” Amit Khurana, Head of Institutional Equities, Dolat Capital says. 

He points out that the food delivery business faces structural challenges, especially in tier-3 and tier-4 markets, while quick commerce has a much larger addressable opportunity.

With Swiggy raising fresh capital and both BigBasket and Reliance expanding aggressively, operational execution in quick commerce has become critical. “In that sense, this move is more about the focus required on execution,” Khurana notes. 

He further says that Goyal continues to remain associated with the company at a strategic level, sitting on the board and retaining an oversight role.

Market Awaits Clarity

The development comes at a time when food delivery platform Zomato is trading at an elevated price-to-earnings multiple, which makes the stock sensitive to changes in management and execution. 

“The stock is highly valued, and when leadership change appears unanticipated, it naturally raises concerns,” Kranthi Bathini, Director, Equity Strategy, WealthMills Securities explains. 

Since the announcement came post-market hours, Bathini says that the initial reaction will only be visible when the market opens and volumes settle. The first trading session after the announcement, analysts say, will offer a clearer read on investor sentiment. 

“It will separate knee-jerk reactions from longer-term positioning. We need at least the next few quarters of performance to properly assess the impact of his exit,” he adds. 

Ambareesh Baliga, an independent market analyst echoes similar sentiments, saying the impact should be limited unless there will be a material deterioration in performance over the next couple of quarters.

“If results weaken noticeably, then the market may react at that point. The company has reached a certain level of maturity now, so individual exits are less disruptive than they would have been earlier,” Baliga says. 

The manner of Goyal’s transition matters more than the transition itself. His continued presence as vice chairman is seen as limiting downside risk. For some investors, the change may even offer an opportunity for fresh leadership thinking, provided execution remains intact.