High Valuation, Higher Expectations: Eternal Crosses ₹3.1 Lakh Crore

Eternal Ltd, better known as Zomato, has crossed the ₹3.1 lakh crore market cap mark, joining the top 25 most valuable companies in India. This puts the food delivery company ahead of established names like Tata Motors, Wipro, JSW Steel, and Bharat Electronics, showing how a digital-first business can compete with India’s biggest firms.

The Journey So Far: Volatility to Victory

Eternal’s stock has had its ups and downs. Following its highly anticipated listing, the stock rose 16% in 2021, giving early investors some confidence. However, in 2022, shares dropped by 58%, resulting in losses and raising concerns about the company's ability to remain profitable.

Still, the company bounced back. In 2023, the stock jumped 105%, and in 2024, it rose another 123%, making Eternal one of the top large-cap performers. Even in 2025, despite challenges at home and abroad, the stock is up 16.38% so far, similar to its early gains after listing.

This big turnaround shows that investors believe Eternal can balance growth with running its business efficiently, and that it leads India’s food-tech sector.

Why Investors Are Paying a Premium

Eternal’s rising market value shows that many believe in its long-term growth. Here’s why:

• Market leadership: Eternal dominates the Indian online food delivery space with a strong moat of scale, customer loyalty, and technology-led operations.
• Operational efficiency: Improved unit economics, growing order volumes, and tighter cost controls have steadily enhanced profitability metrics.
• Diversification: The company is expanding beyond food delivery into quick commerce and allied digital services, opening new growth levers.
• Investor confidence: Global and domestic institutions continue to place high bets on Eternal’s long-term story, fuelling valuation expansion.

The Valuation Question

With a market cap above ₹3.1 lakh crore, Eternal trades at a high valuation compared to similar companies worldwide. This means investors now expect even more from the company.

The company’s ability to sustain current valuations will depend on:

• Consistent earnings growth
• Margin stability in a competitive market
• Expansion into new revenue streams without diluting focus
• Navigating regulatory risks in India’s evolving digital economy

What Lies Ahead

Eternal’s rapid rise in value demonstrates its strong market position, but it also means the company must continue to perform well. It is no longer just a new internet company; it is now a major player, and there is considerable pressure to continue delivering results.

Conclusion

Eternal’s rise to a ₹3.1 lakh crore market cap marks a defining moment not only for the company but also for India’s digital economy. Eternal reaching a ₹3.1 lakh crore market cap is a big moment for both the company and India’s digital economy. It shows that technology-focused businesses can now compete with and even surpass traditional industry leaders. Strength, financial discipline, and ability to innovate in a rapidly evolving sector. For investors, Eternal remains a high-conviction story—but with equally high scrutiny.