Eternal May See Outflow Of INR 3,235 Cr As FTSE Cuts Weight In Indices

FTSE Russell's decision to reduce Eternal's investability weighting in its indices is projected to trigger an outflow of INR 3,235 crore. This adjustment stems from Eternal's strategic move to decrease foreign ownership to 49.5%, a step the company's CFO, Akshant Goyal, stated would facilitate Blinkit's transition to an inventory ownership model. Industry analysts, including IIFL Capital, anticipate a similar reduction by MSCI in its upcoming May review, potentially exacerbating the outflow. In Q4 FY25, Eternal reported a significant drop in consolidated profit after tax, despite an increase in operating revenue. While Blinkit's top line grew, its adjusted EBITDA loss expanded. These developments highlight the financial implications of ownership restructuring for Eternal and its subsidiary.