Eternal Limited, the parent company of Zomato, has approved a fresh round of employee stock options (ESOPs) totaling about ₹172 crore, granting more than 74 lakh options to employees as part of a broader effort to retain talent and align staff incentives with long‑term company performance.
Allocation and structure of the new ESOP grant
The Nomination and Remuneration Committee approved the issuance on April 1, 2026. Of the total grant, over 56 lakh options are being issued under the ESOP 2024 plan, while roughly 18 lakh options come from the ESOP 2021 pool. A small remainder is being sourced from the earlier 2014 scheme, ensuring employees at different tenures and joining cohorts participate in the programme.
Each option is convertible into one equity share with a face value of ₹1. The exercise price has been fixed at ₹1 as well, effectively making exercised options immediately accretive to employees should the market value of the shares rise.
Employee‑friendly terms and vesting horizon
The plan emphasises flexibility for participants: employees are generally allowed up to 10 years to exercise vested options, with some grants permitting longer exercise windows in exceptional cases. There is no post‑exercise lock‑in, giving employees the ability to sell shares subject to applicable insider trading and regulatory norms.
Context: financial performance and strategic intent
The ESOP roll‑out follows a period of steady financial performance at Eternal. For FY26 the company reported consolidated revenue of ₹16,315 crore and a profit of ₹102 crore. Management frames the grant as part of a strategy to share value creation with employees and strengthen retention amid competitive hiring dynamics in the Indian startup and technology sectors.
By using equity‑based compensation across multiple vintage plans, Eternal aims to reward long‑serving staff while providing attractive incentives to recent hires, aligning employee interests with long‑term shareholder value.
