FlipkartThe Story
Flipkart Internet reported revenue from operations of ₹1,45,880 crore in FY26, up 18.2 per cent from ₹1,23,451 crore, with net loss narrowing 2.1 per cent to ₹8,468 crore from ₹8,646 crore, according to consolidated accounts filed with the Registrar of Companies.
These are the first consolidated figures following the group's reverse flip to India, which brought 25 subsidiaries including Myntra and Cleartrip under Flipkart Internet after the Singapore entities were amalgamated in March 2026.
The revenue mix changed sharply. Sale of traded goods remained the largest stream at ₹1,04,850 crore, up 12.8 per cent from ₹92,957 crore. Logistics, warehousing and shipping services rose 2.4 times to ₹23,059 crore from ₹9,580 crore, becoming the second-largest line. Advertising grew 30.7 per cent to ₹9,597 crore from ₹7,343 crore. Marketplace and collection services, which covers seller fees, commissions and payment collection charges, fell 43.9 per cent to ₹6,719 crore from ₹11,967 crore.
Other operating income added ₹1,655 crore and non-operating income ₹820 crore, taking total revenue to ₹1,46,700 crore.
Cost of materials, at 74.4 per cent of total expenses, rose 17 per cent to ₹1,15,118 crore. Transportation expenses rose 28.9 per cent to ₹15,154 crore and advertising expenses 4.7 per cent to ₹4,941 crore. Employee benefit expenses rose just 1.3 per cent to ₹8,376 crore, including ₹2,922 crore of ESOP cost. Total expenses rose 16 per cent to ₹1,54,781 crore.
EBITDA loss narrowed 21.5 per cent to ₹5,891 crore. EBITDA margin was −4.04 per cent and return on capital employed −39.04 per cent. The company spent ₹1.06 to earn each rupee of operating revenue, against ₹1.08 in FY25.
Why It Matters
Two revenue lines moved violently in opposite directions in a single year, and the most likely explanation is not that the business changed that much.
Logistics, warehousing and shipping went from ₹9,580 crore to ₹23,059 crore. Marketplace and collection services went from ₹11,967 crore to ₹6,719 crore. A platform does not organically more than double what it charges sellers to move goods while nearly halving what it charges them to sell goods, not in twelve months, not at this scale. What happened in those twelve months is that 25 subsidiaries were amalgamated into Flipkart Internet in March 2026.
When a group consolidates entities that were previously billing each other, revenue that used to be categorised one way starts being categorised another, and intra-group transactions that were eliminated at one level appear at a different one. That is the ordinary mechanics of a restructuring, not a red flag. But it does mean the FY26 and FY25 columns are describing different things, and the clean 18.2 per cent growth headline sits on top of a perimeter that moved.
The number that survives this is the ratio. Flipkart spent ₹1.06 to earn each rupee of operating revenue, against ₹1.08 the year before. That is an improvement of two paise, in a year when revenue grew by ₹22,429 crore.
The other number that survives is the gap between EBITDA and net. EBITDA loss narrowed 21.5 per cent, net loss narrowed 2.1 per cent. Everything gained above the line was given back below it, to depreciation, finance costs and a ₹2,922 crore ESOP charge. For a company eighteen years old operating at this revenue, the operating leverage still is not arriving where it needs to.
The Strategic Read
The two profitable-looking lines are now large enough to matter on their own.
Logistics at ₹23,059 crore and advertising at ₹9,597 crore come to ₹32,656 crore, about 22 per cent of operating revenue. Both are structurally higher-margin than selling goods, and advertising in particular is close to pure contribution once the audience exists. Amazon followed exactly this path, and its advertising business is now a larger profit contributor than its retail operation in several markets.
The scale is worth sitting with. Flipkart's logistics line alone is roughly twice the annual revenue of Delhivery, India's largest listed logistics company. If that arm were a standalone business it would be the biggest in the sector by a wide margin, and it is currently disclosed as a revenue line inside a loss-making retailer.
The ₹2,922 crore ESOP charge points the same way. That is a third of the reported loss and it is non-cash, which means the cash loss is closer to ₹5,546 crore on ₹1.46 lakh crore of revenue. A charge of that size also implies substantial employee equity needing a liquidity event.
Put those together and the shape is familiar. A domiciled Indian entity, 25 subsidiaries consolidated under one roof, the first full set of group accounts on record, high-margin segments broken out separately, and a large ESOP pool awaiting liquidity. That is the sequence companies run before they list.
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