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Tag: Zomato Eternal

  • Eternal Faces INR 128 Cr GST Demand and Penalty Order from Uttar Pradesh Tax Authorities

    The company that owns the Zomato and Blinkit brands, Eternal, announced on 19 October that the Uttar Pradesh tax authorities had issued a demand order for goods and services tax (GST) along with more than INR 128 crore in applicable interest and penalties. The Deputy Commissioner, State Tax, Lucknow, Uttar Pradesh, issued a demand order about the overuse of input tax credits and the underpayment of output taxes for the April 2023–March 2024 period, together with associated interest and penalties. Eternal stated that it will appeal the order to the proper authority since it feels it has a compelling argument on its grounds.

    Eternal to Challenge the Order

    The order was issued in accordance with Section 74 of the Central GST and Uttar Pradesh GST Acts, per the filings made with the BSE and National Stock Exchange. The corporation has been accused by the tax administration of underpaying output tax and overusing input tax credits. Eternal Limited declared in its disclosure that it would challenge the order and that it was confident in its legal position.

    “The company will be appealing the order before the proper authority because we think we have a strong case on merits,” the business said. Investors were reassured by the food delivery and restaurant aggregator platform, which had previously changed its name from Zomato to Eternal Limited, that it does not anticipate any financial consequences from this event. This shows that the business is optimistic about getting a good result from the appeals process.

    IT Department Putting a Scanner on E-Commerce

    In order to ensure GST compliance, Indian tax officials have been closely monitoring e-commerce and service platforms at the time of the order. The large penalty amount, which is equivalent to the initial tax demand, is said to represent the authority’s assessment that the infraction was serious. The impact of this revelation on investor sentiment towards the company, which has been striving for consistent profitability in recent quarters, will be widely monitored by market analysts.

    Quick Shots

    •Eternal
    receives a GST demand and penalty order worth     ₹128 crore from Uttar Pradesh tax authorities.

    •Alleged
    overuse of input tax credits and underpayment of output taxes for April
    2023–March 2024.

    •Issued
    under Section 74 of Central GST & UP GST Acts by Deputy Commissioner,
    State Tax, Lucknow.

    •Eternal
    plans to appeal, citing a strong legal case on merits.

    •Company
    assures investors it does not expect any financial impact from the order.

    •Indian
    tax authorities are increasingly scrutinizing e-commerce and service
    platforms for GST compliance.

    •The penalty amount matches the
    initial tax demand, signaling a serious infraction assessment.

  • BNP Paribas Buys INR 3,200 Cr Stake in Eternal (Zomato Parent), Sells INR 1,158 Cr in Swiggy

    In a block deal on 26 August, BNP Paribas Financial Markets purchased 10.12 Cr shares of Zomato parent company Eternal and sold 2.69 Cr shares of rival Swiggy. According to NSE records, BNP Paribas paid INR 318.1 per share for Eternal shares, making the acquisition worth approximately INR 3,200 Cr.

    Block Deal Details: Eternal and Swiggy Share Transactions

    The investor also sold 16,083 shares for INR 51.11 lakh in a different bulk transaction. Eternal’s stock ended yesterday’s trading session on the BSE 0.5% down, at INR 317.80. At the end of the session, the market capitalisation of the company was INR 3.06 Lakh Cr.

    Due to Ganesh Chaturthi, the stock exchanges are closed today. In the meantime, BNP Paribas sold 2.69 Cr Swiggy shares for INR 430.38 each, resulting in an INR 1,158 Cr block deal. It bought INR 18.54 Cr worth of Swiggy shares in a different bulk transaction.

    BNP Paribas’ Recent Moves in Swiggy Stake

    Last month, BNP Paribas purchased 3.2 lakh Swiggy shares at INR 381 a share. In the bulk transaction at the time, Citigroup Global Markets sold its shares. It is important to note that Swiggy is down more than 20% this year, whereas Eternal’s shares have increased more than 14%.

    Eternal vs Swiggy: Quick Commerce Rivalry Heats Up

    The two businesses are currently involved in a fierce fight in the rapid commerce space, which coincides with the bulk deals. In addition to having a duopoly in the foodtech sector, Swiggy and Zomato are investing heavily to gain control of the nation’s quickly expanding fast commerce market.

    Blinkit Leading Ahead of Instamart

    Blinkit from Eternal now leads Swiggy’s Instamart, but companies like Zepto, Flipkart Minutes, BigBasket, and others are all vying for market share in the majors’ rapid commerce sectors. Eternal and Swiggy are rapidly growing their network of dark stores in order to keep the competition at bay.

    As a result, the corporations’ bottom lines have suffered. In the first quarter of FY26, Blinkit lost INR 42 Cr, compared to INR 43 Cr in the same period the previous year. Due to its ongoing investments in Blinkit, even Eternal’s consolidated net profit fell more than 90% to INR 25 Cr from INR 253 Cr in Q1 FY25.

    In a similar vein, Swiggy’s net loss increased 96% from INR 611 Cr in the previous quarter to INR 1,197 Cr in the June quarter. In the first quarter of FY26, Instamart’s loss was INR 797 Cr, nearly three times the INR 280 Cr loss from the same quarter the previous year.

    Quick
    Shots

    •BNP Paribas Offloaded 2.69 Cr Swiggy
    shares worth ₹1,158 Cr at INR 430.38/share.

    •BNP Paribas had bought 3.2 lakh
    Swiggy shares last month at INR 381/share.

    •Eternal’s Blinkit leads Instamart,
    competing with Zepto, Flipkart Minutes, BigBasket.

    •Eternal up 14% in 2025 YTD; Swiggy
    down 20% YTD.

  • Eternal (Zomato & Blinkit Owner) Faces INR 40 Crore GST Demand Orders; Apparel Industry Seeks Tax Relief

    Eternal, the owner of the Zomato and Blinkit brands, has been subject to three notices from the Goods and Services Tax department. The orders amount to more than INR 40 crore in tax demands, including interest and penalties, as reported by PTI.

    According to the report, the Joint Commissioner-4 Bengaluru issued all of these directives between July 2017 and March 2020. Zomato, Blinkit, District, and Hyperpure are the four main companies that make up Eternal.

    Zomato & Blinkit Owner Plans to Challenge Tax Notices

    The company announced that it will challenge the tax demand orders. In a late-night regulatory filing on August 25, PTI cited Eternal as stating that the company received three orders on August 25, 2025, from the Joint Commissioner, Appeals-4, Bengaluru, confirming the total demand of INR 17,191,176,2 for GST, along with interest of INR 21,421,479.1 and a penalty of INR 1,719,117.7 for the period July 2017 to March 2020.

    Karnataka Hosiery & Garment Association Pushes for GST Rationalisation

    The Karnataka Hosiery and Garment Association advocated on August 25 for the Goods and Services Tax (GST) Council to rationalise tax slabs on clothing and hosiery items and to include petroleum products in the indirect tax system.

    According to the group, different GST rates on clothing lead to misunderstandings, make compliance more difficult, and increase consumer expenses.

    In a statement to Finance Minister Nirmala Sitharaman and members of the GST Council, Sajjan Raj Mehta, the chairman of the association’s taxation committee, was quoted by PTI as saying that a uniform 5% GST rate for all clothing and hosiery products would lower price volatility, reduce inflationary pressures on the general public, improve compliance, lessen classification disputes, and create a level playing field for MSMEs and organised players.

    Why Industry Groups Want Petroleum Products Under GST?

    Noting that petrol, diesel and other fuels that are not subject to the tax system result in cascading taxes and increased input costs for many industries, the group also pushed for the inclusion of petroleum products under the GST.

    It stated that “their inclusion will ensure a uniform tax structure across states, avoiding wide fuel price disparities, improve transparency, lower overall costs of goods and services, and benefit the logistics and textile sectors where transportation is a major expense.”

    Quick
    Shots

    •Orders cover July 2017 to March 2020,
    issued by Joint Commissioner (Appeals-4), Bengaluru.

    •INR 17.19 crore GST, INR 21.42 crore
    interest, and ₹1.71 crore penalty imposed.

    •Company to challenge orders,
    regulatory filing confirms appeal plans.

    •Karnataka Hosiery & Garment
    Association seeks uniform 5% GST on clothing & hosiery.

  • Eternal Hit With INR 1.34 Cr GST Demand for FY22, Set to Challenge Order

    A tax demand and penalty order totalling INR 1.34 Cr for the fiscal year 2021–2022 has been issued to Eternal, a food delivery and rapid commerce company.

    Tax Order Issued by Lucknow Authorities

    According to a stock exchange filing by the firm, which owns Zomato and Blinkit, the order was issued on 6 August by the Deputy Commissioner of State Tax in Lucknow, Uttar Pradesh, in accordance with Section 74 of the CGST and UPGST Acts. In addition to relevant interest, the total sum consists of INR 67.25 lakh in tax demand and an equal amount in penalty.

    Company Plans to Appeal GST Ruling

    The overuse of input tax credits and the underpayment of output taxes were the reasons for the increase in demand. In a filing, Eternal said that it thinks the company has a compelling argument on its own merits and that it will appeal the ruling to the relevant authority.

    GST Troubles Are Not New for Eternal

    Companies like Eternal frequently receive GST notices for non-payment of taxes; in fact, several state government offices have sent out these notices. For example, in December of last year, the CGST and Central Excise of Thane Commissionerate sent Eternal a GST demand notice and a penalty demand of INR 803 Cr.

    Before that, the company had received GST notices from the governments of West Bengal, Tamil Nadu, Karnataka, and Haryana within the previous 12 months.

    Financial Performance: Profit Drop Despite Revenue Surge

    In terms of finances, the company’s first-quarter net profit for FY26 dropped 90% to INR 25 Cr from INR 253 during the same period last year. From INR 4,206 Cr in Q1 FY25 to INR 7,167 Cr, Eternal’s operating revenue increased by more than 70%.

    The penalty coincides with reports that Antfin, an Alibaba Group unit, will sell 18.8 Cr shares of Eternal in a block deal valued at around INR 5,375 Cr. At the conclusion of the June quarter, Antfin owned 1.95% of Eternal, according to the company’s shareholding that was listed on exchanges.

    NRAI Demands Clarity on Zomato’s Long-Distance Fee

    The National Restaurant Association of India (NRAI) has chosen to speak with Zomato this month after a flurry of restaurant complaints regarding the food tech giant’s recently implemented long-distance service charge.

    According to various media reports, the restaurant industry association had preliminary talks with Deepinder Goyal, the CEO of Zomato parent company Eternal, about the matter and intends to meet with him this month to try to find a solution.

    Zomato announced in May of this year that, regardless of order value, it would charge restaurants a service fee of INR 15 for deliveries within 4 to 6 km and INR 25 to INR 35 for deliveries over 6 km.

    Restaurants are furious about this action. Zomato asserts that it sets a 30% commission cap on restaurant orders, but eateries complain that this cap has been violated as a result of the new long-distance price.

    Quick
    Shots

    ·       
    GST Demand: INR
    1.34 Cr for FY22

    ·       
    Reason: Excess input
    credit & underpaid output tax

    ·       
    Issued by:
    Deputy Commissioner, Lucknow

    ·       
    Parent Company:
    Eternal (owns Zomato, Blinkit)

    ·       
    Appeal: Planned
    by Eternal

    ·       
    Recent Profit
    Drop: 90% YoY

    ·       
    Antfin Share
    Sale: INR 5,375 Cr block deal

    ·       
    Industry
    Backlash: NRAI vs Zomato on new fees

  • Swiggy Rolls Out Corporate Rewards Programme to Woo Corporates

    To further strengthen its food delivery business, listed foodtech firm Swiggy has established a corporate rewards programme, just days after unveiling a new initiative to attract students. The CEO of Swiggy’s food marketplace segment, Rohit Kapoor, stated in a LinkedIn post that the new programme will provide corporate personnel with a number of advantages, such as lower Swiggy One membership costs and order discounts.

    Kapoor went on to say that Swiggy’s new Corporate Rewards programme truly excites him. A wealth of advantages can be accessed with just a basic email verification. Customers can receive at least INR 125 off simply by using their work email, or they can have a Swiggy One subscription that offers unlimited free deliveries for a full quarter.

    Corporate personnel will receive “a minimum of INR 125 off on food orders”, “flat INR 1,000 on top of pre-book offers”, and Swiggy One membership at “INR 30” (with “free” delivery for 3+1 months).

    Swiggy Farming New Business Strategies for Increasing Proceeds

    Kapoor offered the new product to both new hires and “senior managers planning team lunches” in his social media post. Days prior, Swiggy said that it was testing a student rewards programme on 2,000 colleges in more than 200 Indian cities.

    By July 2025, it stated that it intended to extend the programme to over 4,500 universities nationwide. The company’s larger plan to boost membership, make its meal delivery network more appealing, and raise income includes the additional products.

    The rain fee waiver for Swiggy and Zomato’s membership programmes was just discontinued. Earlier this month, the Sriharsha Majety-led company granted exclusive licenses to Bengaluru-based Kouzina Food Tech for its digital-first food brands, which include The Bowl Company (TBC), Homely, Soul Rasa, and Istah, as part of its attempts to streamline operations and reduce losses.

    This came after Swiggy removed these brands from its list because of operational issues. The slowing in the larger food delivery ecosystem is the cause of the new launches and modifications. This has affected Swiggy as well as Zomato.

    Swiggy’s Revenue Taking a Hit Owing to Aggressive Expansion

    The fierce rivalry in the rapid commerce space has made Swiggy’s issues worse. The company’s bottom line has suffered as a result of its aggressive expansion of the Swiggy Instamart dark store network.

     In the fourth quarter of FY25, the fast commerce vertical’s adjusted EBITDA loss increased 45.3% on a quarterly basis to INR 840 Cr. Swiggy’s INR 425 Cr deployment and the addition of 316 new dark stores in Q4 alone—more than the prior eight quarters combined—were the main drivers of this.

    Consequently, Swiggy’s overall net loss in Q4 FY25 soared 95% year over year to INR 1,081.18 Cr. The result has been a decline in Swiggy’s stock price. Last week, the company’s shares fell to an all-time low of INR 297 during intraday trade. On the BSE, the stock has lost about 40% of its value so far this year.

  • Rakesh Ranjan, Head of Zomato’s Food Delivery Division, Resigns

    According to a media report, Rakesh Ranjan, the CEO of Zomato‘s meal delivery company, will be leaving his current role. As per the published news, Deepinder Goyal, the creator and group CEO of Zomato, would oversee food delivery operations in the upcoming months.

     Rakesh Ranjan will undoubtedly stay with the company and not be leaving. According to the report, this was a component of the company’s biannual leadership reorganisation.

    As part of the company’s continuous attempts to maximise organisational effectiveness, Zomato’s spokeswoman said that internal reorganisation of the executive team is seen as a routine practice at Eternal Group.

    Food Delivery Sector Witnessing a Meltdown

    Although Zomato regularly restructures its leadership, the management shift coincides with a slowdown in the larger food delivery sector. According to Rakesh Ranjan, the food delivery industry is currently seeing a widespread downturn in demand that began in the second half of November.

     In his January 20 shareholder letter detailing the company’s quarterly results, he made this announcement. Ranjan has worked at the Gurugram-based company for almost eight years, having been appointed CEO in June 2023.

     Zomato was already leading the market when Ranjan took over, but throughout the previous few months, it increased its advantage. However, the meal delivery industry is still developing since there is still no obvious leader, and Swiggy and Zomato’s market shares fluctuate periodically.

    Not just Zomato, the industry leader in meal delivery, is seeing a slowdown. In line with peers, Swiggy, its rival, has also experienced a downturn.

    Major Changes in Leadership at Zomato

    Zomato has made two significant leadership changes in its meal delivery company in the midst of a slower market and some market share erosion.

    Rakesh Ranjan has been replaced as the unit’s CEO by Deepinder Goyal, and earlier this month, Rinshul Chandra resigned as the chief operational officer (food delivery).

    Delhi HC Notifies Zomato and CCI

    As part of an ongoing antitrust probe against the foodtech giant, the Delhi High Court (HC) has sent notice to Zomato and the Competition Commission of India (CCI).

    According to reports, the HC made the rulings at a hearing on a plea against the National Restaurant Association of India’s (NRAI) exclusion from the confidential ring during the investigation. The HC was also urged by the NRAI to examine the company’s confidentiality claims.

    The confidential ring was first introduced in 2022 and gives parties access to private documents or information about other parties in an inquiry so they can better defend themselves.

    The confidentiality ring aids regulators in quickly resolving complaints, subject to specific riders. Exclusion from the ring inhibits a petitioner’s capacity to make a defence.

    It is important to remember that in October 2024, the competition watchdog removed the NRAI from the ring after it had been first included.

    At the hearing on 21 April, Zomato’s lawyer allegedly argued that the NRAI should not be included in the confidential ring because it included companies that are competitors of the foodtech juggernaut.

  • Zomato Rebrands to Eternal Ltd, Expands Beyond Food Delivery with New Name

    Deepinder Goyal-led Zomato has announced that it has officially changed its company name to “Eternal Ltd,” with the board approving the move on February 6, 2025. This change will apply to the company itself, but the Zomato brand and app will remain the same. Along with the new name, the company’s stock ticker symbol will also shift from “Zomato” to “Eternal.”

    The decision to rebrand comes after Zomato began using the name “Eternal” internally when it acquired Blinkit. The company felt that this name better represented its broader ambitions as it expanded beyond its original focus on food delivery. Eternal will now encompass four major businesses: Zomato, Blinkit, District, and Hyperpure. This rebranding reflects the company’s shift towards becoming a more diversified entity, with operations extending beyond just the food delivery sector.

    While the rebrand marks a major transition for the company, the Zomato app, which is a key part of its business, will continue to operate under the same name. The focus of the name change is to differentiate the company’s broader operations, which have evolved a lot over time. By adopting the name Eternal, Zomato aims to position itself for future growth and success across multiple business segments.

    The timing of the name change coincides with some challenges in the food delivery industry. Zomato, along with its competitor Swiggy, has seen a slowdown in demand since November 2024. Despite these challenges, the company reported a 64% year-on-year increase in revenues for Q3FY25, reaching INR 5,404 crore. However, its profit after tax (PAT) dropped by 57%, standing at INR 59 crore compared to INR 138 crore in the same quarter the previous year.

    The rebranding to Eternal is part of Zomato’s effort to diversify its offerings and adapt to changing market conditions. The company’s decision to rename itself aligns with its broader goals of evolving beyond food delivery, with new initiatives in areas like grocery delivery and food sourcing through Blinkit and Hyperpure.

    The approval from the board is the first step, and the company will now seek approval from its shareholders to finalise the name change. As Zomato transitions into Eternal, it hopes to solidify its position as a leader in multiple sectors, while continuing to navigate the complexities of the food tech industry.

    Zomato: Founders | History | Success Story | Growth | Funding
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