Why Walmart Would Rather Keep Flipkart Private for Now: IPO Delay, Mounting Losses and Profitability Push

Why Walmart Is in No Hurry to List Flipkart

Walmart appears willing to wait before taking its Indian e-commerce subsidiary, Flipkart, to the stock market. Although the company has been preparing for a potential initial public offering (IPO), its immediate priority is improving profitability rather than rushing towards a listing.

According to a report published by The Economic Times on October 27, 2026, Walmart wants Flipkart to achieve EBITDA break-even by the end of FY 2026–27 before it considers an IPO or fresh fundraising.

The decision reflects several challenges: continuing financial losses, the cost of competing in India's fast-growing quick-commerce market, concerns about the valuation investors might assign to the business and the increased disclosure requirements that come with being publicly listed.

For Walmart, delaying the IPO could provide more time to strengthen Flipkart's financial performance and business model before exposing the company to public-market expectations.

1. Flipkart Must Improve Profitability Before an IPO

One of the biggest reasons for delaying the listing is that Flipkart has yet to demonstrate consistent profitability at the group level.

Walmart acquired a controlling stake in Flipkart in 2018 for approximately $16 billion. Since then, the Indian business has expanded across e-commerce, fashion, logistics, travel and other digital services.

However, rapid expansion has also required substantial spending on customer acquisition, discounts, technology, infrastructure and new business initiatives.

Walmart's reported preference is now to prioritise operational efficiency and improve financial performance before pursuing a public listing.

EBITDA break-even would mean that earnings before interest, taxes, depreciation and amortisation have reached approximately zero. It would not necessarily mean that Flipkart had become profitable after accounting for all expenses.

This distinction matters because investors would examine not only EBITDA but also net losses, cash flow, growth prospects and the sustainability of the company's business model.

2. Flipkart Is Still Reporting Significant Losses

Flipkart's financial performance remains a central concern for its parent company.

According to the group's first consolidated accounts following its holding company's return to India, revenue increased by approximately 18% to ₹1,45,880 crore in FY 2025–26. However, its consolidated net loss narrowed only slightly, to ₹8,468 crore from a restated ₹8,646 crore.

The figures indicate that revenue growth has not yet translated into a comparable improvement in the group's bottom line.

The marketplace business has also faced pressure. The Economic Times report said its operating revenue declined by approximately 19% to ₹16,295 crore in FY26, while its loss increased more than threefold to ₹5,498 crore.

These figures highlight why Walmart may prefer to delay a public offering until the financial performance becomes more convincing to potential investors.

Higher revenue alone may not be enough to support an IPO if losses remain substantial and the path to profitability is uncertain.

3. Staying Private Gives Flipkart More Freedom to Invest

Another important consideration is the flexibility that private ownership provides.

Flipkart is expanding into quick commerce through Flipkart Minutes, which competes with services such as Blinkit, Zepto, Swiggy Instamart and Amazon's quick-commerce offering.

Quick commerce requires substantial investment in local fulfilment centres, inventory management, delivery operations, technology and customer acquisition. Companies often need to spend heavily before these businesses reach sustainable profitability.

If Flipkart were publicly listed, investors and analysts would closely examine the returns generated by this spending every quarter.

By keeping Flipkart private for now, Walmart can give the company more time to develop new businesses and improve its economics without facing the same immediate pressure from public-market investors.

However, private ownership does not eliminate the need for financial discipline. Walmart still expects Flipkart to demonstrate a credible path towards profitability.

4. Public Listing Would Bring Greater Quarterly Scrutiny

A listed Flipkart would have to provide regular financial disclosures and explain its business performance to shareholders, analysts and the market.

That could make its spending decisions more difficult to manage, particularly while it is investing in quick commerce and other emerging businesses.

Its rival Amazon presents a different comparison. Amazon's Indian entities disclose financial information through regulatory filings, but Amazon does not separately report India's business performance in its global quarterly earnings.

Consequently, Flipkart could face more direct public scrutiny of its India-specific performance than its principal rival.

This matters in a market where discounting, advertising, delivery costs and customer acquisition can significantly influence profitability.

Walmart may therefore prefer to take Flipkart public only when its financial performance and growth strategy can withstand detailed investor scrutiny.

5. Walmart's Leadership Changes May Also Affect the IPO Timeline

The leadership structure at Walmart has changed since the retailer acquired Flipkart.

Doug McMillon, who was Walmart's chief executive when the acquisition took place, retired on January 31, 2026. John Furner subsequently took over as Walmart's CEO.

Kath McLay, who previously led Walmart International, also left the position earlier in 2026. Chris Nicholas became president and CEO of Walmart International in February.

Flipkart's proposed listing is therefore being evaluated under a changed leadership team, with greater emphasis on financial performance and capital allocation.

The change does not necessarily mean Walmart has abandoned its IPO plans. Instead, it suggests that the parent company wants Flipkart to meet clearer financial targets before proceeding.

The EBITDA break-even target for the end of FY27 is a significant milestone in this process.

6. Flipkart's Valuation Could Become a Major IPO Challenge

Another concern is the valuation that Flipkart could command in a public offering.

According to The Economic Times, an internal share buyback in July 2026 valued the company at approximately $38.2 billion, only slightly above its reported valuation of $37.6 billion in 2021.

A public listing would require Walmart and Flipkart to agree on a price that attracts investors while meeting the parent's financial objectives.

That could be difficult if investors remain concerned about losses, slowing growth in parts of the marketplace business and the cost of competing in quick commerce.

The performance of other Indian technology companies also provides a reference point. Public-market investors have shown interest in businesses with compelling growth prospects, but valuations depend on financial performance, market conditions and expectations for future profitability.

For a company of Flipkart's size, even a modest difference between the valuation sought by its parent and the price investors are willing to pay could complicate the IPO.

Waiting could allow Walmart to seek a stronger valuation after Flipkart demonstrates more consistent progress towards profitability.

7. Former Employees Are Waiting for Liquidity on Their Stock Options

The delay is also affecting former Flipkart employees who hold vested employee stock options.

According to the Economic Times report, at least eight former senior executives wrote to Walmart chairman Gregory Penner, other board members and Flipkart Group CEO Kalyan Krishnamurthy on October 1, 2026.

The group included former Myntra CEO Mukesh Bansal and former Flipkart chief business officer Ankit Nagori. They sought a complete exit mechanism for former employees holding vested options.

Former employees from Flipkart, Myntra, Cleartrip, Shopsy and other group companies subsequently submitted a collective representation to the boards of Walmart and Flipkart.

These employees have been waiting for a public listing or another arrangement that would allow them to realise the value of their vested holdings.

A delayed IPO can leave employees with shares or options that are difficult to convert into cash, even when the company has a substantial private-market valuation.

Walmart has said it would examine the issues raised by the former employees.

The dispute illustrates another consequence of postponing a listing: employees and early contributors may have to wait longer for liquidity, even as the business continues to grow.

8. Flipkart Is Expanding Its Advertising Business

Despite the concerns surrounding profitability, Flipkart has reported improvements in some areas of its business.

Its advertising operation has become an increasingly important source of revenue. The Economic Times report noted that Flipkart Ads grew by 31% in FY26.

Advertising can improve the economics of an e-commerce platform because sellers pay to promote products and reach customers. If managed effectively, this revenue stream can improve margins without requiring the company to depend entirely on commissions from product sales.

However, Flipkart still needs to balance advertising growth with the performance of its core marketplace and newer services.

A stronger advertising business could support profitability, but it does not by itself resolve the group's overall losses.

9. What Do Flipkart's FY26 Financial Results Reveal?

Flipkart's latest consolidated financial figures show that the company is growing but has not yet achieved overall profitability.

Financial indicatorFY 2025–26Revenue from operations₹1,45,880 croreRevenue growthApproximately 18%Consolidated net loss₹8,468 crorePrevious year's restated net loss₹8,646 croreAdjusted operating margin-5.4%Previous adjusted operating margin-7.7%Growth in Flipkart AdsApproximately 31%

Source: Reported consolidated financial statements and media coverage. Figures relate to FY26 and should not be interpreted as a real-time trading update.

The figures show improvement in revenue, gross margins and adjusted operating performance. However, the reduction in the consolidated net loss was relatively modest.

The group also faces higher financing costs and expenses associated with operating and expanding multiple businesses.

For Walmart, the key question is whether Flipkart can turn its scale and improving operating metrics into sustainable profitability.

10. How Does the Flipkart IPO Compare With PhonePe's Listing Plans?

Walmart also has a major Indian investment in PhonePe, the digital payments and financial services company.

However, the business models and listing considerations are different.

PhonePe operates in a regulated financial-services environment, where a public listing may provide additional visibility and credibility. Flipkart, by contrast, faces intense competition in e-commerce and must demonstrate that its scale can translate into sustainable earnings.

PhonePe's own listing plans have also faced valuation challenges. The Economic Times report noted that the company had shelved its IPO in March 2026 after bankers advised it to lower its valuation expectations amid market uncertainty.

This provides a useful comparison for Walmart. Even a business with a different growth profile may struggle to achieve its desired IPO valuation.

For Flipkart, the combination of continuing losses, capital-intensive expansion and uncertainty over pricing gives Walmart additional reasons to wait.

11. Has Walmart Abandoned Flipkart's IPO Plans?

There is no indication in the reported developments that Walmart has permanently abandoned a potential Flipkart IPO.

The company has already taken an important structural step by moving its holding company from Singapore to India, making a domestic listing more practical.

However, the IPO timeline remains uncertain. Walmart's reported priority is to achieve EBITDA break-even by the end of FY27 before considering a listing or fresh fundraising.

That means Flipkart's immediate focus is expected to remain on improving margins, managing expenses and allocating capital to businesses that can support long-term growth.

A future listing will depend on the company's financial progress, market conditions, valuation expectations and Walmart's strategic decisions.

Key Takeaways

• Walmart is reportedly prioritising Flipkart's profitability over an immediate IPO.

• The company has been asked to target EBITDA break-even by the end of FY 2026–27.

• Flipkart reported ₹1,45,880 crore in consolidated revenue and a net loss of ₹8,468 crore in FY26.

• Its quick-commerce business, Flipkart Minutes, requires investment as competition intensifies.

• Remaining private allows Flipkart to make investment decisions without the same quarterly public-market scrutiny.

• Walmart's leadership changes have brought renewed focus on financial performance and capital allocation.

• Flipkart's valuation and the price investors may be willing to pay could complicate its IPO.

• Former employees are seeking liquidity for vested stock options as the listing timeline remains uncertain.

• Flipkart Ads grew by approximately 31% in FY26, but the group continues to report substantial net losses.

• Walmart has not publicly confirmed a permanent cancellation of the IPO; the timeline remains uncertain.

Bottom Line

Walmart's decision to keep Flipkart private for now reflects a combination of financial, competitive and valuation considerations.

Flipkart has achieved substantial scale in India's e-commerce market, but its consolidated losses remain significant. At the same time, the company is investing in quick commerce, advertising and other businesses that could support future growth but require capital.

Walmart appears to want a clearer path to profitability before exposing Flipkart to public-market scrutiny. The end-of-FY27 EBITDA break-even target is therefore an important milestone.

For former employees awaiting liquidity and investors watching India's startup market, the delay means that a Flipkart IPO remains a possibility rather than an event with a confirmed date.