Zomato execs make a killing as EBIDTA spikes, ESOPs worth Rs 419 crore exercised

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Posted by AI on 2025-08-11 13:40:24 | Last Updated by AI on 2025-08-11 16:29:17

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Since its IPO earlier this year, online food delivery platform Zomato's parent company, Zomato Limited, has seen its shares soar in value, prompting executives to exercise their employee stock ownership plans (ESOPs) worth a total of Rs 419 crore ($53 million). ESOPs must be exercised before sale. Exercising gives executives the right to buy shares at a fixed, often lower strike price, allowing potential profit when sold later

Zomato Limited's shares were trading at Rs 123.40 on the BSE, nearly double the IPO price of Rs 76. The sharp appreciation in the share price is a windfall for these executives, who have exercised ESOPs worth Rs 419 crore in the last three months, according to a report in The Economic Times.

The company's adjusted earnings before interest, taxes, depreciation and amortization (EBIDTA) more than doubled in the first quarter of the financial year 2023, from Rs 19 crore in Q1 FY22 to Rs 46 crore in Q1 FY23, due to increased scale and cost efficiencies, the report added.

Zomato is currently the market leader in the online food delivery space in India, with a 67% market share, ahead of Swiggy with about 33%, as of September 2022.

The company executives who have cashed in their ESOPs include CEO Deepinder Goyal, CFO Sunit Sigh Mauriya, and human resources head Shaleen Sinha.

The development reflects Zomato's success in creating value for both its investors and employees alike, despite the challenges faced by the industry.

"We are incredibly proud of the strong ESG (environmental, social, and governance) credentials and the unique employee-friendly culture we have built at Zomato," said Goyal. "Our ESOPs are an integral part of our overall employee compensation and retention strategy, and we remain committed to granting a significant portion of the company's equity to our employees."

The news highlights the potential for massive gains and entrepreneurial success in the tech space in India, and is a testament to Zomato's strong leadership and business fundamentals, attracting and retaining top talent.

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