Zomato Share Price Falls for 8 Straight Days. What's Really Going On?

Eight Days of Decline

That's how long Zomato share price has been sliding.

On Thursday, February 26, shares of Eternal Ltd. — the parent company of Zomato and Blinkit — extended their losing streak to eight consecutive sessions. For a company that was once the poster child of India's new-age internet boom, that kind of stretch gets people talking.

The last time the stock fell this many days in a row was back in April–May 2022, when it declined for nine straight sessions. This time around, the stock has dropped about 13% during the eight-day slide, slipping to its lowest level since June 2025.

As of Thursday's trade, the Zomato share price closed at ₹246.40, down 1.54%.

So what changed?

The ₹2,403 Crore Block Deal That Shook the Morning

One big trigger on Thursday was a block deal.

Around 9.7 crore shares, roughly 1% of Eternal's total equity, changed hands at an average price of ₹247.75 per share. The total value of the transaction came to about ₹2,403 crore.

The identities of the buyers and sellers haven't been officially disclosed. But when a deal of this size hits the market, it almost always creates short-term turbulence. Large transactions can make investors uneasy, not necessarily because something is wrong, but because nobody likes uncertainty.

Block deals don't automatically mean insiders are exiting or that fundamentals are weakening. They can reflect portfolio rebalancing or institutional reshuffling. Still, in a stock already under pressure, it adds fuel to the fire.

But Weren't the Numbers Strong?

That's where things get interesting.

In Q3FY26 (December quarter), Eternal reported a sharp jump in performance. Consolidated profit after tax rose 72.88% year-on-year to ₹102 crore, compared to ₹59 crore in the same quarter last year.

Revenue growth was even more dramatic. Revenue from operations surged 201.85% year-on-year to ₹16,315 crore, up from ₹5,405 crore.

That kind of growth doesn't usually line up with an eight-day losing streak.

The company attributed the improvement to operating leverage and tighter cost discipline as its businesses scaled. In simple terms: as volumes grew, margins started looking healthier.

At the same time, Eternal announced a leadership transition. Albinder Dhindsa will take charge as Group CEO, with operating decisions shifting under his oversight. Under his leadership, Blinkit managed a turnaround and progressed toward breakeven, something that wasn't guaranteed a couple of years ago. Blinkit is now described as the group's largest growth opportunity.

So fundamentally, the business doesn't appear to be cracking.

Quick Commerce: Big Theme, Big Volatility

The quick commerce space, which is known for its ultra-fast grocery and essentials delivery, remains one of India's most closely watched internet sectors.

Bernstein recently said it remains constructive on Indian quick commerce, calling it a strong fundamental story, though it warned that investors may need to stomach narrative-driven volatility in the coming quarters. The brokerage maintained its "outperform" rating on Eternal with a price target of ₹370.

Yet despite that broad optimism, the Zomato share price is down nearly 20% over the last six months and about 10% year-to-date.

That's the thing about high-growth internet stocks. They don't just move on earnings. They move on expectations. On sentiment. On perception.

So Why Is the Zomato Share Price Falling?

Right now, it looks less like a fundamentals issue and more like a mix of short-term supply, sentiment, and shifting narratives.

When a stock runs hard over the years, as Eternal did after turning profitable in food delivery and scaling Blinkit, expectations rise with it. Any pause, any block deal, any sign of recalibration can trigger sharper reactions than usual.

Markets don't just price today. They price what investors believe tomorrow will look like.

And if that belief wobbles, even temporarily, the stock reflects it quickly.

Is This Just Market Mood or a Real Shift?

Eternal's eight-day losing streak is its longest in nearly four years. That's notable.

But so are the numbers: triple-digit revenue growth, improving profitability, and a leadership shift aimed at sharpening execution.

For now, the Zomato share price is trading near levels last seen in June 2025. Whether this phase becomes a deeper correction or just a temporary bout of volatility will likely depend on how the quick commerce story evolves, and how comfortable investors are with short-term swings in a long-term growth narrative.

Because if there's one thing this week has shown, it's this:

Even the market's former favourites aren't immune to gravity.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a SEBI-registered advisor before making investment decisions.