Indian Mutual Funds Raise Eternal Stake to 28.9% as FPIs Exit

Domestic mutual funds sharply increased their holdings in Eternal, the parent company of Zomato and Blinkit, during Q4 FY26. This came as foreign investors pulled back significantly from the stock during the same period. Mutual fund ownership in Eternal jumped to 28.9% in March 2026, up from 16.4% in December 2025. Large funds like SBI Mutual Fund and HDFC Mutual Fund each crossed the 3.5% mark. New entrants including Mirae Asset, Motilal Oswal, and Aditya Birla Sun Life also added fresh positions. Existing investors like Kotak Flexicap Fund, ICICI Prudential Balanced Advantage Fund, and UTI Flexi Cap Fund all scaled up their holdings meaningfully. Foreign ownership in Eternal fell sharply to 32.6% from 47.3%. Foreign portfolio investors (FPIs) saw their holdings drop by 11.2% to 24.8%. Kuwait Investment Authority and Antfin Singapore exited entirely. The Government of Singapore trimmed its stake slightly to 1.11%. This shift is part of a broader national trend. Since the US-Iran war began, foreign institutional investors (FIIs) have pulled over $18 billion from Indian equities, with more than $13.9 billion exiting in March alone. Domestic mutual funds added over 12 percentage points in Eternal during this period, effectively absorbing the foreign outflows. On the business side, Eternal reported a 73% YoY jump in net profit to ₹102 Cr in Q3 FY26, with revenue surging over 3X to ₹16,315 Cr. Blinkit crossed ₹10,000 Cr in quarterly revenue and turned adjusted EBITDA positive for the first time. Deepinder Goyal has stepped down as CEO, with Blinkit CEO Albinder Dhindsa set to take over. Shares of Eternal closed 4.36% higher at ₹246.5 on the BSE.