Indian mutual funds have significantly ramped up their ownership in Eternal Ltd (the parent entity of food-tech giant Zomato) during the fourth quarter of FY26. According to the latest shareholding filings, domestic mutual fund (MF) exposure to the company surged to 28.91% as of March 2026, marking a substantial jump from 16.4% in the previous quarter ending December 2025.
This aggressive accumulation by domestic institutional investors (DIIs) comes at a time when Foreign Institutional Investors (FIIs) are trimming their positions, signaling a major shift in the stock’s ownership structure toward Indian institutions.
Key Highlights of Eternal’s Q4 Shareholding Shift
The March 2026 quarter data reveals a strategic “changing of the guard” in Eternal’s cap table:
- Mutual Fund Surge: MF holdings rose by over 1,250 basis points in a single quarter. Major players like SBI Mutual Fund and HDFC Mutual Fund were leading buyers, each acquiring stakes exceeding 3.5%.
- FII Exit: Foreign ownership plummeted to 32.6%, down from 47.3% in December 2025. Notable exits included full liquidations by the Kuwait Investment Authority and Antfin Singapore.
- Retail Participation: Individual retail investors now hold approximately 31.4% of the company.
Why are Mutual Funds Bullish on Eternal?
Market analysts attribute this domestic “buying spree” to Eternal’s robust financial turnaround. The company recently reported a 73% YoY jump in net profit to ₹102 crore, with revenues tripling to ₹16,315 crore.
The primary growth engine has been the Blinkit segment, which successfully transitioned to an inventory-led model, helping the group achieve a positive adjusted EBITDA for the first time in Q3 FY26. Furthermore, the leadership transition—with Albinder Dhindsa taking a more central role—has been well-received by domestic fund managers.
Market Impact and Stock Performance
Amidst the shareholding shuffle, Eternal’s stock has shown resilience. As of mid-April 2026, the share price was trading at approximately ₹249.07 on the NSE. Despite global volatility stemming from recent geopolitical tensions in the Middle East, which led to a broader $18 billion FII outflow from Indian equities, Eternal remains a preferred “conviction buy” for Indian fund houses like Mirae Asset and Motilal Oswal.
Top Mutual Fund Schemes Holding Eternal (March 2026)
| Mutual Fund Scheme | Action in Q4 FY26 |
| UTI Flexi Cap Fund | Increased stake to 5.57% |
| Nippon India Focused Fund | Increased stake to 4.35% |
| Helios Flexi Cap Fund | Increased stake to 3.94% |
| Canara Robeco Mid Cap | Increased stake by 22% (MoM) |
Expert Insight: “The transfer of control from foreign to domestic hands often stabilizes a stock during global macro uncertainty,” says a lead analyst at Choice India. “Mutual funds are betting on Eternal’s dominance in the quick-commerce space via Blinkit, which is now outperforming traditional retail metrics.”
