Eternal Stock Can See Outflows Of $840 Million On FTSE, MSCI Weight Changes

London-based FTSE Russell announced on Friday changes in the investability weight in Eternal Ltd., formerly Zomato. This follows a reduction in the foreign ownership limit from 100% to 49.5%.

The adjustment will be effective from May 27. The stock is part of four indices: FTSE All-World Index, FTSE MPF All-World Index, FTSE Global Large Cap Index, and FTSE Emerging Index.

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Unlike headroom-related reductions, a direct cut may lead to a full investability weight reduction in a single step during this interim event. IIFL Capital Services expects outflows of $380 million or Rs 3,235 crore from Eternal stock.

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Besides, US-based MSCI's weight change during the May review can lead to $460 million or Rs 3,917 crore outflows from Eternal, the brokerage estimates.

MSCI's May 2025 semi-annual review will take effect after the market closes on May 30.

Eternal reported a 34% drop in net profit for the January–March quarter, falling short of Bloomberg consensus estimates of Rs 42 crore.

Despite the profit miss, Zomato's revenue grew 7.9% to Rs 5,833 crore—beating street estimates of Rs 5,824 crore. Blinkit, its quick commerce arm, added a record 294 net new stores during the quarter and remains on track to hit 2,000 stores by December 2025.

Zomato also announced the shutdown of its Zomato Quick and Zomato Everyday verticals, citing the lack of a viable profitability roadmap without compromising user experience.

Shares of Eternal settled 3.6% higher at Rs 237.45 apiece on the BSE, compared to a 0.95% gain in the benchmark Sensex.

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