Zomato Becomes First Startup to Join Sensex, Replaces JSW Steel

Food delivery giant Zomato Ltd has made history by becoming the first startup to debut on the Bombay Stock Exchange’s (BSE) Sensex, replacing steel giant JSW Steel Ltd in the benchmark index of India’s top 30 companies. Effective December 23, 2024, this landmark inclusion is expected to generate inflows worth ₹4,362.35 crore into Zomato and outflows of ₹2,142.91 crore from JSW Steel, according to brokerage firm Nuvama.

The inclusion comes as Zomato’s shares have surged, rallying nearly 43% in the last six months and 126% over the past year. The company’s improved unit economics, especially in its quick-commerce segment, has bolstered investor confidence. Zomato also reported a robust 69% year-on-year increase in consolidated revenue to ₹4,799 crore in Q2 FY2024-25, with net profit rising fivefold to ₹176 crore.

With a market capitalization of ₹2.72 lakh crore, Zomato has surpassed JSW Steel’s ₹2.24 lakh crore valuation. Analysts from UBS attribute the stock’s 150% rally over the past 18 months to Zomato’s strides towards profitability. This milestone highlights the growing prominence of tech-based companies in India’s corporate ecosystem.

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