Asset Management
French financial-services group BNP Paribas and Millennium Management affiliate Integrated Core Strategies executed substantial sales in Eternal, the listed Indian foodtech company formerly known for its Zomato identity. BNP Paribas sold 5.09 crore shares at ₹327.93 each, generating approximately ₹1,670.9 crore, while Integrated Core Strategies sold 4.9 crore shares at ₹327.90, representing nearly ₹1,594 crore.
Together, the transactions exceeded ₹3,264.8 crore. The average sale price of approximately ₹327.92 was only 0.06% above Eternal’s Monday closing price of ₹327.70, indicating that the sellers were able to execute significant positions without demanding a meaningful premium.
The timing is particularly relevant. The sales occurred ahead of the September 1 MSCI index rebalancing, which was expected to increase Eternal’s index weight. That prospective increase can generate additional institutional demand as index-tracking portfolios adjust their allocations.
The block transactions should be viewed within a much larger trading event. Reports indicated that approximately 20.2 crore Eternal shares, worth around ₹6,626 crore, changed hands during the session.
There was no clarity on the ultimate buyers of the shares sold by BNP Paribas and Millennium. For sophisticated investors, that uncertainty is important. A large institutional exit does not necessarily represent a deterioration in the company’s fundamentals when the shares are being absorbed by other investors, particularly around a major index rebalancing.
The key issue is therefore ownership rotation rather than simply selling pressure. The market is determining which investors are willing to own Eternal at a valuation reflecting its rapidly expanding operating profile.
Eternal’s fundamental performance provides context for the continued investor interest. The company reported consolidated Q1 FY27 net profit of ₹92 crore, approximately 3.7 times the ₹25 crore recorded in the year-ago quarter.
Operating revenue increased 182% year over year and 17% sequentially to ₹20,211 crore. Those figures indicate that the company’s scale is continuing to expand despite intense competition in India’s food delivery and quick-commerce markets.
The stock has responded accordingly. Eternal shares have gained more than 30.9% over the past three months and approximately 18% year to date.
That performance, however, means expectations are also rising. Investors must now determine whether the company’s earnings trajectory can continue to justify the valuation after such a strong advance.
Eternal’s growth is occurring against an increasingly competitive landscape. The quick-commerce market remains contested, while new entrants such as Rapido’s Ownly and the potential entry of Flipkart into food delivery could intensify pressure across the sector.
At the same time, Eternal’s food-delivery business underwent operational changes, including the closure of customer-support operations in Hyderabad and the reported layoff of approximately 240 employees. The company also announced a ban on dishes containing analogue dairy products, including analogue paneer, on its platform.
These developments illustrate the balance investors must consider: rapid financial growth accompanied by continuous operational adjustment and intensifying competition.
The Eternal block deals demonstrate how index mechanics, institutional liquidity and corporate fundamentals can intersect in India’s rapidly developing digital economy. BNP Paribas and Millennium’s sales may reflect portfolio management rather than a fundamental rejection of Eternal’s long-term prospects, particularly given the timing around the MSCI rebalancing.
For global investors, the more important question is whether Eternal can convert its exceptional revenue growth into durable profitability while defending its competitive position. The next stage of the investment story will depend less on headline trading activity and more on earnings quality, cash generation, competitive intensity and the company’s ability to scale efficiently.
Eternal’s latest institutional transactions highlight the increasing sophistication of India’s equity markets. Large global investors can monetize positions into index-driven liquidity without necessarily signaling a fundamental change in their assessment of a company. For wealth holders evaluating Indian growth equities, Eternal offers a useful case study in balancing exceptional operating momentum against valuation, competitive disruption and institutional ownership rotation.
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