7 hours ago
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Flipkart Group has widened its pb successful India's e-commerce marketplace and strengthened its dominance successful online manner done Myntra, according to a Bank of America Securities study that points to resilient user request contempt aggravated contention crossed the net sector.
The brokerage, citing Sensor Tower regular progressive idiosyncratic (DAU) information and manufacture checks, said Flipkart remained the starring e-commerce level by idiosyncratic engagement arsenic of June 2026, portion Myntra continued to propulsion up of rivals successful fashion.
The findings suggest that competitory pressures successful India's online retail marketplace person yet to dent Flipkart's marketplace position, adjacent arsenic rivals proceed to put heavy to summation share.
BofA said Myntra's enactment successful manner appears to beryllium deepening, aided by comparatively constricted contention successful premium manner and quality categories.
The brokerage noted that respective competitors had sought to presumption themselves arsenic credible challengers, but idiosyncratic engagement trends bespeak Myntra continues to consolidate its advantage.
The study comes amid signs of improving user sentiment pursuing a diminution successful planetary commodity prices aft the U.S.-Iran bid agreement.
BofA economists spot easing inflationary pressures and improving macroeconomic conditions supporting depletion maturation successful the adjacent term.
Shipment trends astatine third-party logistics providers, wide regarded arsenic a real-time indicator of e-commerce activity, besides constituent to sustained demand, the brokerage said.
"Till date, 3PLs person not seen immoderate impact," the study said, referring to concerns that weaker discretionary spending could dilatory online retail growth.
BofA added that valuations crossed India's net assemblage person corrected successful caller months connected fears of slowing maturation and artificial-intelligence-led disruption, but said concern show has remained resilient.
The brokerage expects net companies to beryllium among the aboriginal beneficiaries of AI adoption, with gains apt to travel done improved lawsuit personalisation, engagement and outgo optimisation alternatively than meaningful gross uplift successful the adjacent term.
With user request holding up and logistics volumes remaining robust, Flipkart Group appears well-positioned to seizure immoderate acceleration successful spending arsenic macroeconomic conditions improve, the study said.
BofA said India's net assemblage is showing fewer signs of a user spending slowdown, with online travel, speedy commerce and logistics businesses continuing to station resilient maturation contempt caller inflationary pressures.
The brokerage turned much constructive connected the online question conception aft easing geopolitical tensions successful West Asia and little vigor prices improved the macroeconomic outlook, portion maintaining a affirmative presumption connected speedy commerce, third-party logistics and fintech platforms.
"We are present much optimistic connected the online question assemblage arsenic we spot tailwinds, particularly arsenic home aerial capableness is added," the study said, reiterating "Buy" ratings connected MakeMyTrip, Eternal, Swiggy, Delhivery and Paytm.
Industry and retail checks showed nary disposable slowdown successful value-commerce spending oregon e-commerce parcel shipments, challenging capitalist concerns that softer discretionary depletion could measurement connected growth.
For online question level MakeMyTrip, request for eastbound planetary travel, hotels and crushed proscription remained strong, though westbound question and home aerial postulation were softer owed to geopolitical disruptions and elevated airfares.
Quick-commerce request besides remained robust, with contention helping prolong bid growth.
BofA expects Eternal's quick-commerce concern to present nett bid worth maturation of 16-17% quarter-on-quarter, driven by dark-store expansion, portion Swiggy's maturation could mean arsenic the institution prioritises contribution-margin break-even.
In worth commerce, the brokerage said checks indicated nary slowdown successful shipment volumes for Meesho, portion logistics operators person not yet seen immoderate interaction connected parcel request from either value-commerce oregon broader e-commerce channels.
"Tech-logistics companies till day person not seen immoderate interaction from the slowdown successful shipments led by either worth commerce oregon e-commerce," the study said.
Delhivery's explicit parcel concern continues to payment from accrued outsourcing by Meesho, portion its partial-truckload freight concern is expected to support maturation of much than 20% year-on-year successful the adjacent term, BofA said.
The brokerage besides pointed retired that maturation momentum remains beardown for fintech firms specified arsenic Paytm and PB Fintech, contempt capitalist concerns implicit a imaginable reappraisal of security organisation commissions by the Insurance Regulatory and Development Authority of India (Irdai).
Meanwhile, hiring trends person remained mostly unchangeable for recruitment level Naukri, portion contention has intensified successful the emerging instant home-services marketplace pursuing caller backing rounds by rival platforms.
Bofa said valuations crossed India's listed net assemblage had corrected implicit the past six months amid concerns implicit slowing maturation and artificial intelligence-related disruption. However, it sees scope for a re-rating arsenic maturation remains dependable and companies progressively deploy AI to amended lawsuit engagement and trim costs.
"We find astir listed Indian net companies to beryllium aboriginal beneficiaries successful presumption of leveraging AI to personalise idiosyncratic acquisition and optimise costs," the study said.
While AI is improbable to materially boost gross implicit the adjacent 12 to 18 months, it could enactment borderline enlargement crossed net businesses, the brokerage added.
