Eternal Limited (NSE:ETERNAL), formerly known as Zomato Limited, approved the transfer of its Nugget Business to Carthero Technologies Private Limited (CTPL), a wholly owned subsidiary, for a cash consideration of Rs 35 crore. The board meeting held on July 22, 2026, also approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, and scheduled the 16th Annual General Meeting for August 26, 2026.
Key Highlights
- The board approved a business transfer agreement to transfer the Nugget Business from Eternal Limited to CTPL, a wholly owned subsidiary, as part of internal corporate restructuring.
- CTPL will pay cash consideration of Rs 35 crore to the Company, subject to adjustments as agreed under the business transfer agreement.
- The Nugget Business contributed Rs 7.20 crore revenue (0.07% of standalone revenue) and net worth of Rs 10.54 crore (0.03% of standalone net worth) in FY 2025-26.
- The transaction is classified as a related party transaction conducted at arm's length and is expected to be completed within 30 days of execution.
- Unaudited Q1 FY27 consolidated financial results were approved following limited review by statutory auditors Deloitte Haskins & Sells.
- The notice for the 16th AGM scheduled for August 26, 2026, includes re-appointment of Sanjeev Bikhchandani as Non-Executive Nominee Director.
About the Company
Eternal Limited, formerly known as Zomato Limited, is a professionally managed food delivery and technology platform headquartered in New Delhi, India. Listed on the National Stock Exchange (NSE:ETERNAL) with ISIN INE758T01015 and scrip code 543320, the Company operates food delivery services across India and internationally through subsidiaries in Middle East, Philippines, Ireland, and Poland. The Company also operates Blinkit, an instant grocery delivery platform, and Hyperpure, a B2B supply-chain service for restaurants. Eternal's corporate structure includes multiple subsidiaries focused on food and delivery technology, payment solutions, and entertainment services. The Company does not have an identifiable promoter and is professionally managed. The transfer of the Nugget Business represents a streamlining of the corporate structure to focus resources on larger operating platforms.
Announcement in Detail
The board of directors of Eternal Limited at its meeting on July 22, 2026, approved entering into a business transfer agreement with Carthero Technologies Private Limited for the transfer of the Nugget Business, operating under the brand name "Nugget by Zomato." Under the terms of the agreement dated July 22, 2026, CTPL will assume the Nugget Business on a slump sale basis on a going concern basis. The cash consideration payable by CTPL to Eternal Limited is Rs 35 crore, subject to adjustments as agreed under the business transfer agreement. The expected completion date is within 30 days of the execution date.
The Nugget Business is a B2B AI-driven support platform component of Eternal's operations. According to the disclosure, the business generated revenue of Rs 7.20 crore during FY 2025-26, representing 0.07 percent of the Company's standalone revenue. The net worth of the Nugget Business as on March 31, 2026, stood at Rs 10.54 crore, representing 0.03 percent of the Company's standalone net worth. CTPL, the acquiring entity, is a wholly owned subsidiary of Eternal Limited. The transaction has been classified as a related party transaction and is being conducted at arm's length as per SEBI Listing Obligations and Disclosure Requirements Regulations.
The board also approved the unaudited financial results for Q1 FY27 (quarter ended June 30, 2026) on a standalone and consolidated basis, which have been subjected to limited review by statutory auditors Deloitte Haskins & Sells. Additionally, the board approved the notice to be sent to shareholders for convening the 16th Annual General Meeting scheduled for Wednesday, August 26, 2026, at 12:00 P.M. IST through video conferencing or other audio-video means.
Impact on Investors
Investors will note that the Nugget Business transfer represents a non-material divestment, given that the business contributed only 0.07 percent of standalone revenue and 0.03 percent of standalone net worth in FY 2025-26. The Rs 35 crore cash inflow from this internal restructuring may provide the Company with additional liquidity for investment in higher-growth platforms or debt reduction. Since CTPL is a wholly owned subsidiary, the transaction results in no external shareholding dilution, and the business remains within the broader Eternal Limited group structure. The transaction does not alter the consolidated financial position materially, as the business continues to be consolidated in group results.
The filing shows that the transaction is being structured as a related party transaction conducted at arm's length, demonstrating compliance with SEBI governance requirements. The auditors' limited review report on Q1 FY27 consolidated results notes that 17 subsidiaries and 1 trust have not been reviewed by their respective auditors, with unaudited interim financial information reflecting total revenue of Rs 215 crore and total loss after tax of Rs 95 crore for the quarter. Additionally, the auditors drew attention to pending GST authority orders regarding GST on delivery charges, the ultimate outcome of which remains uncertain. Shareholders should note these items when reviewing the complete Q1 FY27 financial disclosures at the upcoming AGM.
Sector / Market Context
India's quick commerce and food delivery sector has undergone significant consolidation and restructuring in recent years as companies optimize their operational structures and focus resources on high-growth segments. The food delivery market in India continues to expand with major players investing in technology infrastructure and supply chain efficiency. Internal business restructuring, such as the transfer of Nugget Business to a subsidiary, is a standard corporate practice among professionally managed listed companies seeking to streamline governance, improve operational agility, and allocate capital more efficiently across business units. The transaction announced by Eternal Limited aligns with sector trends where companies separate mature or smaller business units to allow subsidiary-level management and potential future strategic flexibility. Such restructuring exercises do not typically signal operational distress but rather reflect strategic portfolio optimization decisions within larger conglomerate structures operating across multiple consumer technology verticals.