Eternal Share Price Slides 5% as Labour Code Fears Hit Sentiment

Eternal share price (NSE: ETERNAL) (earlier known as Zomato) dropped as much as 5% to ₹285.70 on the BSE during Tuesday’s intra-day trade. This marked the company’s steepest single-day fall in the past 7 months and came amid a sharp rise in trading volumes.

By early afternoon, the stock was still trading around 3.5% lower, even as the broader market saw only a mild decline. 

Eternal Share Price Down 23% From 52-Week High

With this decline, Eternal share price is now about 23% below its 52-week high of ₹368.40, which was touched in October 2025. The stock has seen increased volatility in recent months as investors reassess near-term risks.

Labour Codes Trigger Investor Concerns

The main reason behind the sell-off is the government’s decision to implement four new labour codes from November 21, 2025. These codes combine 29 existing labour laws into a simplified framework and aim to improve worker protection while easing compliance.

For platform-based companies like Eternal and Swiggy, the new rules mean contributing to a social security fund for gig workers.

On the positive side, recent GST rate cuts on Blinkit’s product basket are expected to boost demand from Q3FY26 onward, even though Q2FY26 saw some impact as customers delayed purchases.

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Conclusion

Eternal’s sharp fall reflects investor nervousness around higher costs from new labour codes and short-term margin pressure. While the company’s long-term growth story remains intact, regulatory changes and competitive intensity could keep the stock volatile in the near future.

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