Walmart India Reports Reduced Losses Despite Modest Revenue Growth

Walmart India is seeing improved financial performance, managing to decrease its losses in FY25 while revenue growth has been low. The operating revenue for Walmart India registered a minor increase of 2.6% to reach Rs 5,331 crore in FY25, up from Rs 5,195 crore in FY24, according to its financial details obtained from Tofler.

Walmart’s income largely stems from wholesale trading, with substantial contributions from both food and non-food goods, which made up 99% of the company’s total operating revenue. Additionally, the firm earned Rs 43 crore from various income sources, including gains from financial instruments and interest accrued on bank deposits, which elevated the total revenue to Rs 5,374 crore in FY25 from Rs 5,200 crore in FY24.

Expenditure Overview

On the spending side, the cost of materials, accounting for nearly 90% of total expenses, rose by 3% to Rs 4,924 crore in FY25 from Rs 4,791 crore in FY24. Meanwhile, employee benefit expenses saw a decrease of 10%, bringing the total to Rs 139 crore, while finance costs dropped 17% to Rs 57 crore. Transport and collection costs experienced minor increases, reaching Rs 94 crore and Rs 44 crore, respectively.

Overall, total expenses slightly increased by 2.4% to Rs 5,484 crore in FY25 compared to Rs 5,355 crore in FY24. Walmart India successfully narrowed its losses by 29%, recording Rs 110 crore in FY25 down from Rs 154 crore in FY24. The company’s return on capital employed (ROCE) and EBITDA margin are reported at -8.85% and -0.35%, respectively.

Unit Economics and Asset Position

At a unit level, Walmart India spent Rs 1.03 to earn one rupee of revenue in FY25. The company held current assets valued at Rs 765 crore, including Rs 59 crore in cash and bank balances during the same fiscal period.

Flipkart’s Performance

Flipkart Internet, the business-to-consumer division belonging to Flipkart and owned by Walmart, documented a 14% year-over-year revenue growth for FY25, surpassing Rs 20,000 crore. During this time, Flipkart also managed to diminish its losses by 37%, reducing them to Rs 1,494 crore.

Walmart India is navigating a competitive landscape that includes organized retail and wholesale rivals, notably Reliance Retail and Metro Cash & Carry.