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Flipkart, Amazon reduce ad spends on Google
MUMBAI: With Google launching an e-commerce platform in the near future, the country’s largest online retail stores, Flipkart and Amazon India, have slashed advertising spends on the web-search company. Both the players see this as a serious threat, as a Mint report quoted two people, familiar with the matter.
According to a person quoted above, Flipkart and Amazon have reduced spending on Google by more than 30 per cent in the previous three months compared to months before and shifted some of that ad spending to other platforms. Until last year, the two online retailers used to spend hundreds of crores of rupees buying ads on Google.
Google’s interest in e-commerce stems from its worry that some shoppers are going straight to Amazon to search for products rather than using Google. If this trend continues, it could threaten Google’s core business of digital advertising. Amazon is already generating billions of dollars in ad revenues in the US.
The people added that, Google was keen on investing in Flipkart because it wanted a strategic partner to help it with its e-commerce push. However, Google wanted a much closer collaboration than Flipkart and its new owner, Walmart, were willing to offer.
Google’s e-commerce push and the rising importance of Flipkart and Amazon in digital ads are the latest examples of how intertwined the tech business has become and how internet firms are increasingly encroaching on each other’s turf.
Google’s retail entry may result in higher losses for existing e-commerce firms. The e-commerce market grew 23 per cent to $18 billion in 2017, according to RedSeer Consulting. India’s e-commerce market is a fraction of the size of China’s or the US. Yet, Flipkart, Amazon India and Paytm Mall bear huge losses while specialty e-commerce firms are struggling to grow sales quickly.
A new serious entrant with deep pockets like Google will strengthen the view that India’s e-commerce market is overcrowded.
Brands
Sapphire Foods FY26 revenue rises to Rs 3,125 crore, posts loss
Q4 revenue at Rs 792 crore, FY26 loss at Rs 32 crore amid cost pressures.
MUMBAI: If growth is on the menu, profitability seems to have taken a brief detour. Sapphire Foods India reported a steady rise in topline for FY26, even as rising costs weighed on profitability. Revenue from operations grew to Rs 3,125 crore for the year ended March 31, 2026, up from Rs 2,882 crore in FY25. However, the company swung to a loss, reporting a net loss of Rs 32 crore for FY26, compared to a profit of Rs 17 crore in the previous year. Total income for the year stood at Rs 3,153 crore, while total expenses climbed to Rs 3,167 crore, reflecting pressure across key cost heads.
In the March quarter, revenue came in at Rs 792 crore, compared to Rs 711 crore in the same period last year. The company reported a quarterly net loss of Rs 13 crore, against a profit of Rs 2 crore a year earlier.
Cost pressures remained visible across operations. Material costs rose to Rs 995 crore for FY26, while employee expenses increased to Rs 428 crore. Other expenses, the largest component, stood at Rs 1,229 crore, underscoring the impact of store operations and expansion-related spends.
Depreciation and amortisation expenses also climbed to Rs 392 crore for the year, reflecting continued investments in store infrastructure and growth.
At the operating level, the company reported a loss before tax of Rs 37 crore for FY26, compared to a profit of Rs 23 crore in FY25. Exceptional items added Rs 24 crore to the cost burden during the year.
On the balance sheet, total assets rose to Rs 3,256 crore as of March 31, 2026, up from Rs 3,041 crore a year earlier, indicating ongoing expansion. Net worth stood at Rs 1,389 crore.
Despite profitability pressures, operating cash flow remained resilient at Rs 507 crore, highlighting underlying business strength and demand stability.
The numbers paint a familiar picture in the quick-service restaurant space, growth continues to be served hot, but margins are still finding their footing.
