Walmart has advised Flipkart to delay its IPO plans and prioritize achieving EBITDA breakeven by FY27. According to multiple reports, this decision was made during Walmart CEO John Furner's recent visit to Bengaluru—his first trip to India since assuming the role in February. During his visit, Furner met with senior Flipkart executives to assess the company's long-term growth and profitability strategy. The latest development confirms that on May 15, 2026, Walmart requested the postponement, emphasizing the need to achieve EBITDA breakeven by the end of FY 2027. This strategy signifies a shift towards prioritizing profitability over capital raising efforts, including any pre-IPO financing.
As reported by Zerodha and based on latest financial data, Flipkart has demonstrated significant progress in reducing losses while maintaining its profitability-focused strategy. The company's marketplace arm, Flipkart Internet, reported a consolidated net loss of ₹1,494.2 crore in FY25, representing a 37% year-on-year improvement from ₹2,358.7 crore in the previous fiscal. This substantial reduction in losses demonstrates the company's commitment to operational efficiency and margin improvement, even as competition intensifies in the e-commerce and quick commerce sectors.
This situation marks the second significant delay in Walmart's listings in India, following the postponement of PhonePe, in which the US company also holds a controlling interest. According to multiple reports, Walmart currently possesses over 80% ownership in Flipkart and approximately 71.8% in PhonePe. The company is not under immediate pressure to generate returns from its investments in India through public offerings and is instead focusing on achieving sustainable financial results over expedited market entry plans.
The move highlights how investor sentiment around growth companies has shifted globally, with public markets becoming far more demanding around profitability and cash flow, especially for large e-commerce and technology businesses that previously prioritized rapid expansion over earnings. Flipkart has been working to improve its financial performance by reducing losses and tightening investments, even as competition intensifies. The decision reflects a broader trend in the retail sector where companies are increasingly focusing on sustainable growth and profitability rather than rapid expansion at the cost of financial health. Walmart's current P/E ratio stands at 48.34, indicating a premium valuation compared to historical averages, while the company maintains a GF Score™ of 82/100, suggesting strong overall performance in key financial metrics.
