Zomato becomes first Indian startup to join BSE Sensex 30, replacing JSW Steel

Deepinder Goyal-led food delivery giant Zomato made history on Monday by becoming the first Indian startup to join the Bombay Stock Exchange’s (BSE) Sensex 30, replacing JSW Steel Ltd in the index of India’s top 30 companies. 

The move, which took effect on December 23, brought estimated inflows of about $513 million (Rs 4,362.35 crore) for Zomato, while JSW Steel is expected to see outflows of $252 million (Rs 2,142.91 crore).

This shift is seen by many experts as a milestone for India’s financial landscape, where tech-driven companies now share space with traditional industries on the country’s most prestigious stock market index.

Zomato's stock performance 

Zomato’s stock performance prior to its Sensex inclusion had already caught the attention of investors. Over the last six months, the share price surged around 38 to 43%, delivering a robust 114 to 126% gain compared to the previous year.

As of Monday (December 23), the company's market capitalization stands at around Rs 2.64 lakh crore.

Financial performance

The food-tech giant’s recent financial results also highlight its strong market position. In the second quarter of the current fiscal year, Zomato posted revenue from operations of Rs 4,799 crore, a 68.5% quarter-on-quarter jump from Rs 2,848 crore in Q2 FY24.

More impressively, net profit leapt to Rs 176 crore, marking a 4.8x increase compared to the same period last year.

Meanwhile, its main rival, Swiggy, reported a net loss of Rs 625 crore on revenue of Rs 3,601 crore during the second quarter.

Recently, Zomato raised Rs 8,500 crore or over $1 billion through qualified institutional placement (QIP), marking its first major fundraise since its IPO in 2021. The company allocated 33.65 crore equity shares at Rs 252.62 per share.