Zomato shareholders approve rebranding corporate entity as Eternal

Zomato Ltd has secured shareholder approval for a special resolution to rename the company as Eternal Ltd. The change, however, applies only to the corporate entity and will not affect the Zomato brand or app, the company clarified in a stock exchange filing.

Beyond the name change, shareholders also approved amendments to the company’s Memorandum of Association (MoA) and Articles of Association (AoA) to reflect the new identity. The approval followed a postal ballot, as outlined in the company’s letters dated February 6 and 7. A scrutinizer’s report published on March 9 detailed the voting outcomes.

The move signals a strategic shift for the company as it continues to evolve within the competitive food delivery and technology space. The board of directors had initially approved the name change on February 6, pending shareholder and regulatory approvals.

Zomato’s rebranding aligns with its vision to expand beyond food delivery into other ventures, including Blinkit, District, and Hyperpure. As part of this transition, the company will update its corporate website from zomato.com to eternal.com, and its stock ticker will change from ZOMATO to ETERNAL. CEO Deepinder Goyal had previously informed shareholders of this development in a letter.

Goyal also revealed that following Blinkit's acquisition, the management began using the name "Eternal" internally to distinguish the parent company from the Blinkit brand.

Meanwhile, Zomato’s stock was trading at Rs 214.92 per share, down 0.88%, as of 11 AM on Monday, March 10. The stock has declined 22.% year-to-date.

Zomato reported a 57% decline in its net profit for the quarter ended December 2024. The company posted a profit of Rs 59 crore, down from Rs 138 crore in the same period the previous year.

Revenue from operations in Q3 FY25 stood at Rs 5,405 crore, reflecting a 64% increase from Rs 3,288 crore in the corresponding quarter of the previous financial year.

Zomato attributed the slowdown in profitability to accelerated investments in expanding its quick commerce store network. Losses in this segment increased by Rs 95 crore during the quarter, as the company pushes towards its goal of establishing 2,000 Blinkit stores by December 2025.

Additionally, growth in the company’s gross order value (GOV) for food delivery was modest, rising just 2% compared to the previous quarter.

Zomato continues to face margin pressure due to increased spending on new fulfillment centres for its Blinkit quick commerce platform.