Eternal enters post-founder leadership transition phase

Analysts flag leadership transition risks, calling the move a short- to medium-term net negative for the stock

- Dipali Banka & Varun Sood

Eternal, the listed consumer-tech and food services company, is entering its first post-founder leadership test after Deepinder Goyal stepped down as chief executive officer, prompting analyst caution over potential impact on its stock performance.

The shares, after touching a high of 7% in early trade, on the back of a good performance in the December quarter, fell 2% to ₹278 later in the day, even as the benchmark index Sensex rose 0.8%.

The parent of food delivery platform Zomato and quick commerce service Blinkit that went public in July 2021, said on Wednesday that Goyal will step down as CEO and take up the vice chairman’s role, starting 1 February. Albinder Singh Dhindsa will succeed Goyal as the CEO.

The transition makes Goyal only the second founder and CEO of an internet startup that went public to relinquish his role from overseeing daily business operations. Freshworks founder Girish Mathrubootham stepped aside as CEO in May 2024 to become chairman and exited the Nasdaq-listed firm in December.