Zomato's food delivery business chief, Rakesh Ranjan, will be stepping down from his position as part of a scheduled reshuffle that occurs every two years. According to sources cited in a report by Moneycontrol, Group CEO Deepinder Goyal will take over food delivery operations in the coming months.
However, Ranjan, who assumed the role of food delivery chief in 2023, will remain part of the company. He has spent nearly 8 years in Zomato and although such leadership rotations are routine exercises, this transition comes amid a broader slowdown in the food delivery sector.
On Wednesday, the shares of Zomato (now Eternal) concluded the day at Rs 238 price level, witnessing a minor surge of 0.29% on the National Stock Exchange.
In the last 1 month, the share price has surged over 4% on bourses. However, on a year-to-date basis, Zomato shares have remained in the red territory, down over 6.67%.
The company is also seeking shareholder approval to cap foreign ownership at 49.5% on a fully diluted basis, according to a recent exchange filing. As of March 2025, foreign ownership stands at 44.88%. If approved, this move would allow Zomato to be classified as an "Indian-Owned-and-Controlled Company" (IOCC), rather than being considered foreign-owned.
Analysts believe that this will allow Zomato’s quick commerce arm, Blinkit, to shift its operating model.
"Blinkit’s business model change (as and when the foreign ownership cap is approved) will only help consolidate its market position in the fast-growing, highly competitive quick commerce space and likely expand its operating margins. We, therefore, reiterate Eternal as our top pick with an unchanged Mar’26 TP of Rs 280," JM Financials said in its recent report, post the announcement.
