Eternal shares slide 4% on $840 mn outflow fears as FTSE, MSCI cut weight

Shares of Eternal fell over 4% on reports of passive outflows following index weightage cuts by global index providers FTSE Russell and MSCI

Shares of Eternal, erstwhile Zomato, plunged over 4 per cent on Monday's intraday session on reports of passive outflows following index weightage cuts by global index providers FTSE Russell and MSCI.

 

The food delivery major, Eternal's stock fell as much as 4.01 per cent during the day to ₹227.9 per share, the biggest intraday loss since May 20 this year. The stock pared losses to trade 3.1 per cent lower at ₹230 apiece, compared to a 0.82 per cent advance in Nifty50 as of 10:15 AM. 

 

Shares of the company have been range-bound throughout this month, but are up over 15 per cent from their March lows. However, the stock is down nearly 25 per cent from its life-highs, which it hit in December last year. The counter has fallen 17 per cent this year, compared to a 5.8 per cent advance in the benchmark Nifty50. Eternal has a total market capitalisation of ₹2.2 trillion.  Track LIVE Stock Market Updates Here

Outflow concerns

IIFL Capital Services noted that the shares of Eternal could see passive outflows of $840 million due to the impending rebalancing, according to reports. FTSE’s rebalancing alone could lead to passive outflows of about $380 million, while MSCI rejig could trigger another $460 million outflow. 

 

The counter of Eternal is included in several of FTSE’s major indices, including the FTSE All-World Index, FTSE MPF All-World Index, FTSE Global Large Cap Index, and FTSE Emerging Index.

 

The index weight reductions follow a recent cut in Eternal’s foreign ownership limit (FOL), from 100 per cent to 49.5 per cent. Unlike routine adjustments that consider available foreign investment headroom, a direct FOL cut leads to a more abrupt recalibration, IIFL noted  . 

Eternal Q4 results 2025

The company's net profit fell 77.7 per cent to ₹39 crore in the fourth quarter of the financial year 2025, as against ₹175 crore during the same period a year earlier. On a sequential basis, profit was down 33.8 per cent from ₹59 crore.  

 

The food delivery major's revenue for the quarter rose 63.7 per cent year-on-year (Y-o-Y) to ₹5,833 crore in Q4, up from ₹3,562 crore a year earlier. The consolidated adjusted earnings before interest, tax, depreciation, and amortisation (Ebitda) declined 15 per cent Y-o-Y to ₹165 crore in Q4FY25, largely on account of the enhanced investment in expanding the company’s quick commerce store network. 

 

Analysts believe Eternal’s profitability could stay under pressure in the near term as the company is focused on capturing better market share, adding that the worst could be behind the company after the April-June quarter of the current financial year (Q1FY26).