This article first appeared on GuruFocus.

Walmart (NASDAQ:WMT) is reportedly telling Flipkart to slow down its IPO ambitions and focus instead on something far less flashy: profitability.

According to Moneycontrol, Walmart has asked the India based e commerce giant to delay its public listing plans for now and prioritize reaching EBITDA breakeven before the end of fiscal 2027. The decision was reportedly discussed during Walmart CEO John Furner’s recent visit to Bengaluru, his first trip to India since taking over the role earlier this year.

Flipkart had been widely viewed as one of India’s most anticipated future IPO candidates, but Walmart now appears more focused on strengthening the company’s financial profile before testing public market appetite. Sources cited in the report said Flipkart has internally set a target of reaching EBITDA breakeven before moving ahead with either an IPO or even a pre IPO fundraising round.

The move also highlights how investor sentiment around growth companies has shifted globally. Over the past few years, public markets have become far more demanding around profitability and cash flow, especially for large e commerce and technology businesses that previously prioritized rapid expansion over earnings.

Interestingly, this is now the second major India listing Walmart has reportedly slowed down after PhonePe. Walmart owns more than 80% of Flipkart and about 71.8% of PhonePe, meaning the retailer still stands to unlock enormous value from eventual public listings in India.

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