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October 05.2025
2 Minutes Read

Eternal's New ESOP Grant: A Bold Step for Employee Engagement

Abstract financial chart with graphs for employee benefits ESOPs.

Eternal Unveils Transformative Employee Benefits with ESOP Grants

In a bold move to enhance employee engagement and retention, Eternal, the parent company of food delivery giant Zomato, recently granted employee stock options (ESOPs) valued at over ₹200 crore—approximately 6.41 million stock options in total. This initiative highlights a significant trend in the corporate world where companies are increasingly leaning toward employee-oriented compensation strategies.

Understanding ESOPs: An Insight into Employee Benefits

Employee Stock Option Plans (ESOPs) serve as a compelling tool for fostering loyalty among staff. By granting employees a stake in the company, firms not only incentivize performance but also create a sense of ownership. The latest allotment at Eternal comes with options convertible into equity shares at a nominal exercise price of just ₹1. Given the current market valuation of about ₹328 per share, this move is expected to empower employees financially while solidifying their commitment to the company’s success.

Contextualizing the Grant Amid Financial Trends

Eternal recently reported a remarkable 70% year-on-year growth in operational revenue, peaking at ₹7,167 crore in Q1 FY26. However, this growth was somewhat overshadowed by a sharp decline in net profit, which fell to ₹25 crore from ₹253 crore the previous year. This curious juxtaposition of growth and declining profits underscores the complexities facing companies like Eternal today. The ESOPs are part of a broader strategy to engage and retain talent during these fluctuating financial waters.

Lessons from Other Industry Leaders

The move mirrors trends seen in other high-profile companies, such as Blinkit, where founder Albinder Dhindsa has also executed sizable ESOP exercises this year. Such strategies are becoming increasingly vital as organizations adopt innovative compensation benchmarks amid rising operational costs and regulatory challenges.

Why Employee Engagement Matters

Faced with workforce challenges, particularly in a post-pandemic world, employee engagement has emerged as a crucial element for business sustainability. Acknowledging and rewarding employee contributions through ESOPs can drastically improve employee satisfaction and productivity. Companies that implement these engagement strategies often find a direct correlation between employee morale and organizational performance.

The Future of Compensation: Embracing HR Technology

As the landscape of benefits administration evolves, embracing HR technology becomes essential. Tools that streamline payroll management and automate benefits enrollment can support firms as they implement sophisticated compensation strategies. Incorporating industry-specific HR software solutions allows for efficient workforce planning and compliance, crucial for managing expectations and optimizing employee engagement.

Conclusion: A Call for Innovative Strategies in HR

Eternal's recent ESOP grant is more than just a financial maneuver; it's a statement of intent aimed at fostering stronger connections between the company and its employees. For HR professionals, payroll managers, and leaders in human capital management, this serves as a reminder of the necessity for ongoing innovation in compensation strategies. Will your organization take similar steps towards enhancing employee retention and satisfaction?

Investing in your workforce today pays dividends tomorrow. Explore best practices and integrate strategies that transcend traditional HR functions to cultivate a thriving and engaged workplace culture.

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