Info Edge’s bet on Eternal now makes up over a third of its market cap

Shares of Info Edge (India) rallied as much as 4.4% on Tuesday to Rs 1,465 on BSE, after the latest earnings-fuelled rally in Eternal, the parent company of Zomato and Blinkit, lifted the value of Info Edge’s stake in the firm to more than a third of its own market capitalisation.

Info Edge holds a 12.38% stake, equivalent to 119.46 crore shares, in Eternal, according to the shareholding pattern for the June quarter filed with the BSE. With Eternal shares soaring nearly 15% on Tuesday to a fresh all-time high of Rs 311.60, that holding is now valued at approximately Rs 37,226 crore.

In comparison, Info Edge’s total market capitalisation stood at Rs 94,184 crore as of Tuesday, July 22 - underscoring the outsized impact of its investment in Eternal on its overall valuation.

A seed bet that paid off

Info Edge first backed Eternal—then known as Zomato—in August 2010, investing Rs 4.7 crore in its seed round for an 18.5% stake. It remained a significant investor through the years, holding nearly 19% at the time of Zomato’s initial public offering in 2021, in which it also participated.

Tuesday’s surge in Eternal shares followed the company’s strong performance in the June quarter, fuelling bullish sentiment among investors. The rally in Eternal lifted sentiment around Info Edge as well, pushing its shares up over 4% in intraday trade.

Despite Tuesday’s gains, shares of Info Edge remain down 16% so far in 2025.

Eternal's Q1 report

Eternal, the parent company of Zomato and Blinkit, reported a sharp 90% year-on-year (YoY) decline in consolidated net profit for Q1FY26. Net profit stood at Rs 25 crore, down from Rs 253 crore in the same quarter last year.

Despite the profit drop, revenue from operations rose 70% YoY to Rs 7,167 crore, driven by strong performance in the quick commerce and food delivery segments.

Akshant Goyal, CFO of Zomato, said the decline in profitability was primarily due to continued investments in quick commerce and the going-out vertical. Consolidated adjusted EBITDA fell 42% YoY to Rs 172 crore, although the food delivery EBITDA margin improved to 5.0%, up from 3.9% a year earlier.

The company reported that the net order value (NOV) of its B2C businesses grew 55% YoY and 16% sequentially to Rs 20,183 crore. For the first time, quick commerce NOV surpassed food delivery NOV for an entire quarter.

Also read | Eternal share price target goes up to Rs 400! What brokerages said after Q1 results

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)