Eternal Limited, the parent company of Zomato, has approved a new employee stock option (ESOP) grant worth about ₹172 crore, issuing more than 74 lakh options to strengthen long‑term employee incentives and retention amid a competitive startup landscape.
Committee approval and strategic intent
The Nomination and Remuneration Committee approved the ESOP grant on April 1, 2026. The move underscores Eternal’s increasing reliance on equity‑based compensation to motivate and retain talent as it scales operations and competes for skilled professionals in the digital services sector.
Allocation across ESOP schemes
More than 56 lakh options have been allocated under the ESOP 2024 plan, indicating a focus on current employees and recent hires. About 18 lakh options have been issued under the ESOP 2021 scheme, with a small remainder coming from the 2014 plan. This tiered distribution aims to reward staff across different tenures and levels.
Exercise terms and employee benefits
Each option converts into one equity share with a face value of ₹1, and the exercise price has been set at ₹1, positioning employees to benefit significantly if the company’s market value rises. Employees are allowed up to 10 years to exercise options in most cases, with some grants permitting longer exercise windows. There is no post‑exercise lock‑in, giving employees flexibility to manage their holdings.
Financial context
The ESOP rollout follows steady financial performance: Eternal reported revenue of ₹16,315 crore and a profit of ₹102 crore for fiscal year 2025–26. Management framed the programme as part of a broader strategy to share corporate success with employees while strengthening long‑term commitment and organisational stability.
