Info Edge’s 12.38% Stake in Eternal Now Accounts for Over One-Third of Its Market Cap

A recent rally in Eternal's stock parent company of Zomato and Blinkit has significantly boosted the value of Info Edge’s stake, making it a key component of the company’s overall valuation.

Shares of Info Edge (India) Ltd climbed as much as 4.4% on Tuesday, at ₹1,467 on the BSE. The rally came in response to Eternal’s Q1 FY26 earnings report, which triggered strong investor sentiment and sent Eternal’s stock to a record high. This surge has elevated the value of Info Edge’s holding in Eternal to over one-third of its total market capitalisation.

Info Edge’s Stake in Eternal: A Strategic Bet

According to filings for the June quarter, Info Edge holds a 12.38% stake in Eternal, which translates to 119.46 crore shares. With Eternal’s stock jumping nearly 15% on Tuesday to an all-time high of ₹311.60, the value of this holding rose to around ₹37,226 crore.

In comparison, Info Edge’s total market cap stood at ₹94,184 crore as of July 22, highlighting the significant weight this single investment carries.

A Long-Term Investment That Continues to Pay Off

Info Edge first invested in Eternal formerly known as Zomato back in August 2010, when it took an 18.5% stake for ₹4.7 crore during its seed funding round. The company continued backing Eternal through the years, even holding a nearly 19% stake during Zomato’s IPO in 2021, where it also participated.

The recent rise in Eternal’s stock has renewed investor focus on Info Edge’s early and consistent backing of the company.

Eternal’s Q1 FY26 Results: Revenue Growth, Profit Decline

Despite the boost to market sentiment, Eternal’s Q1 FY26 results were mixed:

• Consolidated net profit dropped 90% YoY to ₹25 crore, down from ₹253 crore a year earlier.
• Revenue from operations surged 70% YoY to ₹7,167 crore, led by strong growth in quick commerce and food delivery.
• Adjusted EBITDA fell 42% YoY to ₹172 crore, though food delivery margins improved to 5.0%, up from 3.9% in the same quarter last year.
• The Net Order Value (NOV) of Eternal’s B2C businesses rose 55% YoY and 16% sequentially, reaching ₹20,183 crore.
• Notably, quick commerce NOV surpassed food delivery NOV for the first time.

According to Akshant Goyal, CFO of Zomato, the drop in profitability is largely due to continued investments in quick commerce and their dining-out business vertical.

Eternal Share Price Performance

Eternal Ltd share price was trading at ₹301.25, up 10.88% from the previous close of ₹271.70. The stock touched an intraday high of ₹311.25 and recorded a traded volume of 2,362.49 lakh shares, amounting to a traded value of ₹7,116.78 crore.

Eternal's total market capitalisation now stands at ₹2.91 lakh crore, with a free float market cap of ₹2.09 lakh crore. Despite a high PE ratio (above 50) for the past four quarters, investor interest remains strong.

Read More: What Is LAT Aerospace, Zomato Founder Deepinder Goyal’s New Aviation Venture?

Conclusion

Info Edge’s early investment in Eternal continues to play a significant role in its valuation and investor outlook. With Eternal delivering strong topline growth despite margin pressures, the long-term bet by Info Edge appears to be yielding strategic value. However, sustained performance and profitability in the quick commerce space will remain crucial in determining the future trajectory of both companies’ market standing.

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