Flipkart extends lead in Indian e-commerce, Myntra widens lead in fashion, says BofA
The brokerage, citing Sensor Tower daily active user (DAU) data and industry checks, said Flipkart remained the leading e-commerce platform by user engagement as of June 2026, while Myntra continued to pull ahead of rivals in fashion.
Hyderabad: Flipkart Group has widened its lead in India’s e-commerce market and strengthened its dominance in online fashion through Myntra, according to a Bank of America Securities report that points to resilient consumer demand despite intense competition across the internet sector.
The brokerage, citing Sensor Tower daily active user (DAU) data and industry checks, said Flipkart remained the leading e-commerce platform by user engagement as of June 2026, while Myntra continued to pull ahead of rivals in fashion.
The findings suggest that competitive pressures in India’s online retail market have yet to dent Flipkart’s market position, even as rivals continue to invest heavily to gain share.
BofA said Myntra’s leadership in fashion appears to be deepening, aided by relatively limited competition in premium fashion and beauty categories.
The brokerage noted that several competitors had sought to position themselves as credible challengers, but user engagement trends indicate Myntra continues to consolidate its advantage.
The report comes amid signs of improving consumer sentiment following a decline in global commodity prices after the US-Iran peace agreement.
BofA economists see easing inflationary pressures and improving macroeconomic conditions supporting consumption growth in the near term.
Shipment trends at third-party logistics providers, widely regarded as a real-time indicator of e-commerce activity, also point to sustained demand, the brokerage said.
“Till date, 3PLs have not seen any impact,” the report said, referring to concerns that weaker discretionary spending could slow online retail growth.
BofA added that valuations across India’s internet sector have corrected in recent months on fears of slowing growth and artificial-intelligence-led disruption, but said business performance has remained resilient.
The brokerage expects internet companies to be among the early beneficiaries of AI adoption, with gains likely to come through improved customer personalisation, engagement and cost optimisation rather than meaningful revenue uplift in the near term.
With consumer demand holding up and logistics volumes remaining robust, Flipkart Group appears well-positioned to capture any acceleration in spending as macroeconomic conditions improve, the report said.
BofA said India’s internet sector is showing few signs of a consumer spending slowdown, with online travel, quick commerce and logistics businesses continuing to post resilient growth despite recent inflationary pressures.
The brokerage turned more constructive on the online travel segment after easing geopolitical tensions in West Asia and lower energy prices improved the macroeconomic outlook, while maintaining a positive view on quick commerce, third-party logistics and fintech platforms.
“We are now more optimistic on the online travel sector as we see tailwinds, especially as domestic air capacity is added,” the report said, reiterating “Buy” ratings on MakeMyTrip, Eternal, Swiggy, Delhivery and Paytm.
Industry and retail checks showed no visible slowdown in value-commerce spending or e-commerce parcel shipments, challenging investor concerns that softer discretionary consumption could weigh on growth.
For online travel platform MakeMyTrip, demand for eastbound international travel, hotels and ground transportation remained strong, although westbound travel and domestic air traffic were softer due to geopolitical disruptions and elevated airfares.
Quick-commerce demand also remained robust, with competition helping sustain order growth.
BofA expects Eternal’s quick-commerce business to deliver net order value growth of 16-17 per cent quarter-on-quarter, driven by dark-store expansion, while Swiggy’s growth could moderate as the company prioritises contribution-margin break-even.
In value commerce, the brokerage said checks indicated no slowdown in shipment volumes for Meesho, while logistics operators have not yet seen any impact on parcel demand from either value-commerce or broader e-commerce channels.
“Tech-logistics companies till date have not seen any impact from the slowdown in shipments led by either value commerce or e-commerce,” the report said.
Delhivery’s express parcel business continues to benefit from increased outsourcing by Meesho, while its partial-truckload freight business is expected to maintain growth of more than 20 per cent year-on-year in the near term, BofA said.
The brokerage also pointed out that growth momentum remains strong for fintech firms such as Paytm and PB Fintech, despite investor concerns over a potential review of insurance distribution commissions by the Insurance Regulatory and Development Authority of India (Irdai).
Meanwhile, hiring trends have remained largely stable for recruitment platform Naukri, while competition has intensified in the emerging instant home-services market following recent funding rounds by rival platforms.
Bofa said valuations across India’s listed internet sector had corrected over the past six months amid concerns over slowing growth and artificial intelligence-related disruption. However, it sees scope for a re-rating as growth remains steady and companies increasingly deploy AI to improve customer engagement and reduce costs.
“We find most listed Indian internet companies to be early beneficiaries in terms of leveraging AI to personalise user experience and optimise costs,” the report said.
While AI is unlikely to materially boost revenue over the next 12 to 18 months, it could support margin expansion across internet businesses, the brokerage added.
