Flipkart’s Logistics Arm Ekart Narrows FY25 Loss To INR 1,515 Cr

Flipkart-owned logistics company Ekart managed to trim its net loss for the fiscal year FY25 by 12% to INR 1,515 Cr from INR 1,718.1 Cr net loss incurred in the  previous fiscal year.

The minimisation of the net loss comes primarily at the behest of a notable uptick in the logistics major’s top line. In FY25, Ekart registered an operating revenue of INR 13,732.9 Cr, up 13% from INR 12,115.3 Cr in FY24.

Ekart registers its operating revenue by offering businesses services like logistics, collection and warehousing. In this, a large chunk of revenue came from its logistics, transportation and warehousing services, zooming 13% YoY to INR 10,602.5 Cr. 

Meanwhile, revenue from its warehousing services also jumped 27% YoY to INR 1,536.1 Cr. Collections services’ registered the least growth of 8% YoY to INR 1,594.3 Cr. 

Including an other income of INR 432.5 Cr, the company made a total income of INR 14,165.4 Cr in FY25, almost 14% increase from INR 12,431 Cr, a year ago.

Founded in 2009, Ekart was acquired by Flipkart in 2015 and spun off as a separate entity in 2016 to support the fulfillment services not only for Flipkart and Myntra but also for D2C brands, online sellers and retailers.

As of now, the company claims to be operating more than 7,000 trucks running daily across the length and breadth of the country, 70 fulfilment centres, 80 sortation facilities and 3500 delivery hubs to ensure timely delivery across 14,000 pin codes.

Currently, it is set on scaling its quick commerce services. Speaking with Inc42 in August, a company spokesperson said that both of Flipkart’s quick commerce arm ‘Minutes’ and Myntra’s ‘MNow’ are fully operated by Ekart across the country.

“In core ecommerce, Ekart has expanded the reach by over 2,000 pin codes for both Flipkart and Myntra, significantly reducing third-party logistics dependency by nearly 50%,” the spokesperson said.

The annual filings with the MCA reveal that it is currently facing tax demands worth INR 1,029.5 Cr across India for violations of various taxation laws including GST Act, Income Tax Act among others. 

Zooming Into Ekart’s FY25 Expenses

Despite cutting down its losses and seeing a growth in its revenue, Ekart’s expenditure also rose 11% to INR 15,673.8 Cr in the year under review, while its costs stood at INR 14,149.4 Cr in FY24.

Freight, Handling and Servicing Expenses: The spending under this head surged 11% to INR 11,284 Cr in FY25 from INR 10,182.9 Cr in the previous financial year. Of the overall expenditure, freight costs comprised 72%, marking the highest expense.

Employee Benefit Expenses: Employee costs, which include salaries, provident fund, gratuity, among others, rose marginally by 2% to INR 1,269.6 Cr from INR 1,244.9 Cr in FY24. Further, it accounted for 8.1% of the overall expenses in FY25.

Depreciation And Amortisation Expense: The startup spent INR 1,386.5 Cr on depreciation and amortisation in the fiscal year under review, a 17.1% fall from INR 1,183.7 Cr in FY24.