Eternal share price tumbles 5%; stock top loser on NIFTY50 today: What is behind the sharp decline?

The stock, which hit a 52-week high of ₹368.45 on the NSE on October 16, 2025, has corrected 23% from that peak.

Why did Eternal stock fall sharply today?

The sharp fall in Eternal’s stock price appears to have been triggered by a note from global investment firm UBS. According to media reports citing Informist, UBS highlighted that Swiggy gained market share from Eternal in the food delivery segment during November.

The firm noted that overall industry order volumes declined 5.3% month-on-month in November. In comparison, Eternal’s order volumes fell 4.4%, while Swiggy recorded a marginal increase of 0.1%.

UBS attributed Swiggy’s relative outperformance to a reduction in average order value and initiatives such as Snacc, Bolt, and the 99 Store, which helped sustain order volumes. The report also pointed out that Eternal had outperformed Swiggy in the preceding two months.

What a recent research report says

Analysts at Elara Capital, in their research note issued on November 27, 2025, said that India’s e-commerce penetration, at nearly 7% as of CY24, per Redseer, mirrors the early inflection stage once seen in China and the US (decade of the 2010s).

The report said that their analysis benchmarks platform valuation across comparable maturity phases to assess whether India’s internet stocks (Eternal as a case study) reflect similar valuation multiples and value Eternal on growth-adjusted EV/sales.

"We conclude:

• Eternal continues to outperform global peers at a comparable stage of evolution;

• Our avg. growth-adjusted and DCF valuation framework derives a nearly ₹400 per valuation; and

• Global e-commerce markets are dominated by a few scaled firms. Eternal, with its category leadership and Blinkit's rapid horizontal expansion, is well-placed to replicate the same, driving high visibility on sustained growth," the report added.

The report highlights that Eternal stands at an inflection point and is in the maturity phase (18-23 years into operations), where global e-commerce leaders (e.g., Amazon) historically transitioned from scale to sustained profitability; in this phase, Amazon (ex-AWS) delivered nearly 22.2% revenue growth and was trading at a median 2.3x EV/Sales.

"Eternal, in contrast, is estimated to report 46% CAGR; thus, growth-adjusted EV/sales imputes at 4.9x FY28E EV/Sales. On our segmental DCF basis, ask rates for key verticals remain in line (adj. EBITDA of 4-5%) over a decade," the analysts say.

On a blended basis, the key vertical DCF and growth-adjusted EV/sales result in a valuation of $400 per share.

"Eternal remains our valuation anchor for India’s consumer internet names," the report added.

What Jefferies said in January 2025

In January, Jefferies downgraded shares of Eternal (Zomato), citing the sharp run-up in the stock through 2024 and concerns over rising competition in the quick commerce space.

After Zomato’s shares more than doubled in value in 2024, analysts at Jefferies predicted that 2025 could be a breather year, with the stock likely shifting gears into a phase of price consolidation, as per news reports.

Jefferies, news reports said, added that the stock's valuations were not 'excessively expensive' in the face of its strong execution and opportunity, it is the rising competition in the quick commerce space that worries them.