Flipkart Group has further strengthened its position in India’s e-commerce market, while Myntra has widened its lead in the online fashion segment, according to a recent report by Bank of America (BofA) Securities. The report highlights resilient consumer demand and sustained growth across India’s digital economy despite rising competition among internet businesses.
Drawing on Sensor Tower daily active user (DAU) data and industry checks, BofA reported that Flipkart remained the most engaged e-commerce platform in India as of June 2026. At the same time, Myntra continued to outperform competitors in the online fashion and beauty categories, reinforcing its leadership in the segment.
The brokerage noted that intense competition has not significantly impacted Flipkart’s market position. Instead, the company has continued to strengthen its presence in the country’s rapidly growing online retail ecosystem. Moreover, Myntra has benefited from relatively limited competition in premium fashion and beauty, allowing it to consolidate its market advantage further.
Several competitors have attempted to establish themselves as strong alternatives in the fashion space. However, user engagement trends indicate that Myntra continues to attract and retain consumers more effectively than rival platforms.
Meanwhile, improving macroeconomic conditions have supported positive consumer sentiment. BofA pointed out that declining global commodity prices following the US-Iran peace agreement have eased inflationary pressures, creating favorable conditions for consumption growth.
Additionally, shipment data from third-party logistics (3PL) providers, widely considered a real-time indicator of e-commerce activity, suggests that online demand remains robust. The report stated, “Till date, 3PLs have not seen any impact,” addressing concerns that weaker discretionary spending could slow e-commerce growth.
BofA also observed that valuations across India’s internet sector have corrected in recent months due to concerns surrounding slower growth and potential disruption from artificial intelligence. Nevertheless, the brokerage emphasized that underlying business performance remains resilient.
Furthermore, BofA expects internet companies to emerge as early beneficiaries of AI adoption. The brokerage believes that AI will primarily enhance customer personalization, user engagement, and operational efficiency in the near term, although it may not significantly boost revenue immediately.
With consumer spending remaining healthy and logistics volumes continuing to grow, Flipkart appears well-positioned to benefit from any acceleration in consumption as economic conditions improve.
The report also highlighted the broader strength of India’s internet economy. Online travel, quick commerce, logistics, and fintech companies continue to demonstrate resilience despite inflationary challenges over the past year.
BofA expressed increased optimism toward the online travel sector, citing easing geopolitical tensions in West Asia and lower energy prices as positive catalysts. The brokerage maintained “Buy” ratings on MakeMyTrip, Eternal, Swiggy, Delhivery, and Paytm.
Industry and retail checks revealed no significant slowdown in value-commerce spending or e-commerce parcel shipments, challenging concerns that softer discretionary consumption could weigh on growth prospects.
In the online travel segment, MakeMyTrip continued to benefit from strong demand for eastbound international travel, hotels, and ground transportation services. However, westbound travel and domestic air traffic remained relatively softer due to geopolitical disruptions and elevated airfare prices.
Quick commerce platforms also sustained healthy growth momentum. BofA expects Eternal’s quick-commerce business to deliver net order value growth of 16-17% quarter-on-quarter, supported by aggressive dark-store expansion. Meanwhile, Swiggy may witness relatively moderate growth as it focuses on achieving contribution-margin break-even.
Within the value-commerce segment, the brokerage reported stable shipment volumes for Meesho, while logistics operators continued to experience strong parcel demand across both value-commerce and 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 continues to benefit from increased outsourcing by Meesho in its express parcel business. Additionally, the company’s partial-truckload freight segment is expected to maintain growth exceeding 20% year-on-year in the near term.
The report also highlighted strong momentum among fintech companies such as Paytm and PB Fintech, despite investor concerns regarding a possible review of insurance distribution commissions by the Insurance Regulatory and Development Authority of India (IRDAI).
Meanwhile, hiring trends at Naukri have remained largely stable. However, competition has intensified in the emerging instant home-services category following fresh funding activity among rival startups.
Overall, BofA’s findings suggest that India’s internet sector continues to demonstrate strong resilience, with leading players across e-commerce, fashion, travel, logistics, quick commerce, and fintech maintaining healthy growth despite broader economic uncertainties.
