Eternal Stock Drops Sharply as Management Exit Hits Investor Sentiment
Shares of Eternal, formerly known as Zomato, slipped 2.5% on December 30 to hit a five-month low after reports emerged that the chief financial officer of its quick-commerce arm Blinkit had resigned. The stock was trading at Rs 275.9 on the NSE around noon, reflecting heightened investor caution amid intensifying competition in the fast-growing quick-commerce space.
The decline came a day after a media report said Vipin Kapooria, CFO of Blinkit, had stepped down and is expected to return to his former employer, Flipkart. The news weighed on sentiment, especially as Blinkit has been positioned as Eternal’s most critical growth engine.
Market participants noted that management stability is closely watched in high-growth digital platforms. As one analyst put it, “When leadership changes occur in a core business vertical, the market tends to react first and ask questions later.”
Blinkit CFO Vipin Kapooria’s Exit Adds to Uncertainty
According to sources cited in the report, Vipin Kapooria’s resignation comes roughly a year after he joined Blinkit. He is expected to head back to Flipkart, where he previously spent over seven years and is now returning ahead of the e-commerce giant’s planned IPO in 2026.
Kapooria’s departure is significant for Blinkit, as his appointment marked the first time the quick-commerce platform had a full-time designated CFO since Amit Sachdeva exited the role in 2022. His hiring was seen as a key step toward strengthening financial discipline and preparing the business for scale.
An industry executive said, “Kapooria’s return to Flipkart ahead of its IPO is not surprising, but the timing does create a leadership gap at Blinkit when competition is heating up.”
As of now, Eternal has not disclosed who will replace Kapooria, adding to near-term uncertainty for investors tracking Blinkit’s expansion strategy.
Also Read : Waaree Energies Shares Fall 2% A Day Before F&O Entry As CEO Steps Down
Market Reaction Reflects Blinkit’s Strategic Importance to Eternal
The stock reaction underscores how central Blinkit has become to Eternal’s overall investment narrative. Earlier this year, the company had publicly stated that Blinkit is its most important business division, highlighting its role in driving future growth and profitability.
The decision to appoint a full-time CFO had followed shortly after Eternal raised Rs 8,500 crore (about $1 billion) through a qualified institutional placement (QIP). At the time, analysts viewed the move as a signal of Blinkit’s transition from a high-burn startup to a more structured, scalable business.
Key factors amplifying the market reaction include:
-
Blinkit’s role as Eternal’s primary growth driver
-
Rising competition in quick commerce from rivals
-
The absence of clarity on a CFO replacement
On Tuesday, over 8 million Eternal shares changed hands on exchanges, indicating elevated trading activity and short-term nervousness among investors.
Quick-Commerce Competition Intensifies Ahead of IPO Wave
Kapooria’s exit also comes at a time when competition in the quick-commerce sector is intensifying rapidly. Players such as Zepto, Swiggy Instamart, and Blinkit are aggressively expanding dark stores, delivery coverage, and product categories.
Meanwhile, Zepto’s planned IPO would mean that the top three quick-commerce startups could soon be competing in public markets. This would mark a milestone for an industry that barely existed five to six years ago but has now become one of the most closely watched segments in Indian consumer internet.
An analyst tracking the sector said, “Public market scrutiny changes the rules of the game. Leadership stability, unit economics, and governance take centre stage once companies start preparing for IPOs.”
In this context, Blinkit’s CFO transition is being viewed through a governance and execution lens rather than as an isolated personnel move.
Eternal’s Broader Business Remains Intact, Analysts Say
Despite the sharp fall in the stock, some analysts caution against reading too much into the short-term price movement. Eternal continues to benefit from a strong food delivery franchise, improving margins, and a leading position in quick commerce through Blinkit.
However, they acknowledge that near-term sentiment may remain fragile until the company provides clarity on Blinkit’s finance leadership and reassures investors on execution priorities.
A fund manager commented, “Eternal’s long-term story hasn’t changed overnight, but the market wants comfort on who is steering Blinkit financially at a critical growth phase.”
Investor Focus Shifts to Management Clarity and Competitive Strategy
Going forward, investors are likely to watch for updates on Blinkit’s CFO appointment, cost controls, and competitive positioning as rivals scale up. Any communication from the company addressing the leadership transition could help stabilise sentiment.
For now, the five-month low reflects a market that is quick to penalise uncertainty, particularly in high-valuation technology and consumer internet stocks.
As one market veteran summed it up, “In fast-evolving sectors like quick commerce, execution matters as much as ambition. Stability at the top can make all the difference.”
