The food delivery sector is undergoing rapid transformation, and Zomato’s recent rebranding to Eternal Ltd marks a pivotal shift in its corporate strategy. With the Zomato share price reflecting market reactions to this change, investors are keen to understand its implications. This analysis breaks down the rebranding’s rationale, financial impact, and how it aligns with broader trends in the BSE Consumer Discretionary index, while highlighting tools like a free demat account for tracking such developments.

Why the Rebranding?

Zomato’s parent company officially became Eternal Ltd on 9 April 2025, following approvals from the Ministry of Corporate Affairs. The move aims to reflect its diversified portfolio, which now includes:

• Zomato: Core food delivery and dining-out platform.

• Blinkit: Quick-commerce arm offering 10-minute grocery deliveries.

• Hyperpure: B2B kitchen supply chain for restaurants.

• District: Live events and restaurant services.

CEO Deepinder Goyal noted that the name “Eternal” has been used internally since acquiring Blinkit in 2022, symbolising long-term ambitions beyond food delivery. The consumer-facing Zomato app remains unchanged, ensuring brand continuity for users.

Impact on Financial Performance

Let us understand how the following factors have impacted Zomato’s financial performance.

1. Recent Earnings

• Q3 FY25 Results: Consolidated net profit fell 57% YoY to ₹59 crore, despite a 64% revenue jump to ₹5,405 crore.

• Blinkit’s Contribution: Quick-commerce losses widened due to aggressive store expansions (216 new stores added in Q3).

• Stock Volatility: The Zomato share price (now trading as ETERNAL) has faced pressure, dropping 22% in one month as of April 2025.

2. BSE Consumer Discretionary Index Context

The index, which includes Eternal Ltd, has seen mixed trends, reflecting sector-wide challenges like rising competition and margin pressures. Investors monitoring the BSE Consumer Discretionary segment should note how quick-commerce growth offsets short-term profitability concerns.

Key Changes for Investors

• Ticker Symbol Update: The stock now trades as “ETERNAL” on NSE/BSE.

• Corporate Website: Transitioned from zomato.com to eternal.com for investor-related communications.

• Strategic Priorities: Focus on expanding Blinkit’s store network to 2,000 by December 2025, earlier than initially planned.

For those tracking the Zomato share price, using a free demat account simplifies monitoring real-time updates and historical trends.

Analyst Perspectives

• Short-Term Risks: Increased competition in quick commerce may lead to higher marketing costs and delayed profitability.

• Long-Term Potential: Blinkit’s rapid scaling could make it a dominant player, mirroring Zomato’s success in food delivery.

• Valuation Metrics: The stock’s high volatility warrants caution, though sectoral tailwinds in online delivery services offer growth avenues.

Sector-Wide Implications and Investor Strategy

The rebranding highlights a sector-wide move towards diversified models in consumer discretionary markets. Companies under the BSE Consumer Discretionary index, like Eternal Ltd, increasingly adopt vertical integration to expand market control.

Eternal’s ownership of Blinkit and Hyperpure enables cross-selling opportunities, fostering customer loyalty. Such synergies could strengthen its position against rivals in the food delivery and quick-commerce segments.

The Zomato share price (now Eternal) remains tied to quarterly performance, but long-term growth hinges on Blinkit’s scaling efficiency. Tracking metrics like order frequency and basket size will clarify profitability timelines.

A free demat account simplifies participation in corporate actions like buybacks or rights issues. These tools help investors navigate post-rebranding volatility while capitalising on strategic shifts.

Practical Steps for Shareholders

• Portfolio Review: Assess exposure to the BSE Consumer Discretionary index, which includes Eternal Ltd.

• Demat Accounts: Open a free demat account to trade seamlessly during this transition.

• Earnings Focus: Monitor quarterly updates on Blinkit’s losses and Hyperpure’s margin improvements.

Looking Ahead

Eternal Ltd’s rebranding signals a strategic bet on diversified growth, but execution remains critical. While the Zomato share price may face near-term headwinds, Blinkit’s expansion into underserved markets could drive long-term value. Investors should balance optimism with caution, leveraging tools like a free demat account to stay informed.