Zomato-parent Eternal receives ₹64.17 crore state tax notice from Uttar Pradesh government — Here's what we know

Online food delivery platform Zomato's parent company, Eternal, on Sunday, 19 October 2025, disclosed that the Uttar Pradesh (Lucknow) government's Deputy Commissioner of State Tax has imposed a demand order of ₹64.17 crore, according to an exchange filing.

According to the filing data, the demand order is for ₹64,17,43,503 or more than ₹64.17 crore with interest as applicable and penalty.

Eternal's BSE filing showed that a demand order was received with respect to a shortfall in payment of output tax, and allegedly excess availment of input tax credit (ITC) with interest and penalty.

“The demand order has been received with respect to short payment of output tax and excess availment of input tax credit with interest and penalty thereon,” said Eternal, sharing the claims of the Lucknow state tax department.

The filing highlighted that the food delivery company's parent company received the demand order from the state government on 18 October 2025.

What does Eternal plan to do?

In Sunday's filing, Eternal disclosed that the company does not expect any financial impact on its operations. Eternal also plans to contest against the Lucknow government's state tax demand order.

“We believe that we have a strong case on the merits and do not expect any financial impact on the company,” the company informed BSE through the exchange filing.

Eternal Q2 Results

Mint reported earlier that Eternal, the food delivery and quick commerce company, recorded a 63% fall in its consolidated net profit to ₹65 crore in the July to September quarter of the financial year 2025-26, compared to its previous level of ₹176 crore in the same period a year ago.

Eternal's revenue from operations jumped to ₹13,590 crore in the second quarter of the 2025-26 fiscal year, compared to ₹4,799 crore in the same period a year ago.

Eternal share price closed 1.64% lower at ₹342.70 after Friday's stock market session, compared to ₹348.40 at the previous market close. The company announced its second-quarter results on Thursday, 16 October 2025.

Shares of the firm have given stock market investors more than 172% returns on their investment since their listing in 2021 on the Indian stock market. The shares have jumped 29% in the last one-year period.

On a year-to-date (YTD) basis, Eternal shares have risen 23.96% in 2025 and 1.84% in the last one-month period.

Eternal shares hit their 52-week high level at ₹368.40 on 16 October 2025, while the 52-week low level was at ₹189.60 on 7 April 2025, according to the data collected from the BSE website. The company's market capitalisation (M-Cap) stood at over ₹3.30 trillion as of the stock market close on Friday, 17 October 2025.

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