Flipkart Ads grows 31% in FY26 as group revenue rises 18% in Q2 FY27

Flipkart Ads grew 31% year-on-year in FY26, outpacing the Flipkart Group’s overall revenue growth of 18%, as advertising continued to expand as a revenue stream across its e-commerce and associated businesses.

The group’s revenue from operations rose to ₹1,45,880 crore in FY26, while adjusted operating losses narrowed by approximately ₹1,600 crore, according to consolidated financial statements filed with the Registrar of Companies (RoC). However, the improvement in operating performance translated into a relatively modest reduction in net loss, which declined by ₹178 crore to ₹8,468 crore from ₹8,646 crore in FY25.

The results reflect gains in gross margins, unit economics and overhead management, offset by higher finance costs, the derecognition of deferred tax assets recognised in earlier periods and certain one-off exceptional items.

The FY26 filings mark the first time Flipkart Group’s consolidated financial performance has been reported under Flipkart Internet Private Limited following its redomiciliation to India. The company said the statements provide a historical account of the group’s performance for the year ended March 2026 and should not be treated as a current trading update.

The advertising business’s 31% growth comes as the group expands across multiple categories and business verticals. Its consolidated operations include the e-commerce marketplace, fashion platform Myntra, travel booking business Cleartrip, logistics, platform services and other specialised businesses. The group also operates a quick-commerce service called Flipkart Minutes.

These businesses operate through multiple legal entities while sharing technology infrastructure, loyalty programmes and supply-chain capabilities. The consolidated financial statements provide a combined view of their performance.

Flipkart’s adjusted EBITDA improved by approximately ₹1,500 crore during FY26. Adjusted operating losses, measured before finance costs, tax, other income and exceptional items, narrowed by around 17% year-on-year.

The adjusted operating margin improved to -5.4% from -7.7% in FY25, an expansion of 230 basis points. Gross margins increased 23% in absolute terms, which the company attributed to improved unit economics. Lower overheads also contributed to the improvement.

However, the gains at the operating level did not translate into a commensurate reduction in net loss. Finance costs nearly doubled to ₹1,209 crore in FY26 from ₹649 crore in the previous financial year, adding to the group’s expenses.

Total expenses increased 16% to ₹1,54,781 crore from ₹1,33,400 crore, while total income rose to ₹1,46,700 crore from ₹1,24,317 crore.

Purchases of stock-in-trade, the largest expense component, grew 17% to ₹1,17,617 crore from ₹1,00,165 crore. Other expenses rose 16% to ₹28,277 crore from ₹24,325 crore. Employee benefit expenses edged up to ₹8,376 crore from ₹8,268 crore, while depreciation and amortisation expenses remained largely flat at ₹1,801 crore.