# The second test

> Public markets now test startups beyond listings, valuing sustainable growth and profits.
- Title: The second test · Financialexpress | Shortify
- Summary: Public markets now test startups beyond listings, valuing sustainable growth and profits. Public markets are separating startups with credible long-term…
- Keywords: ipo, startups, sustainable growth, profitability, shareholder value, public markets, valuation, business, money, news, second, test
- Source: Financialexpress — https://financialexpress.com/opinion/the-second-test/4352704
- Author: The Financial Express
- Published: 2026-10-02T17:04:04+00:00
- Read time: 1 min
- Topics: ipo, startups, sustainable growth, profitability, shareholder value, public markets, valuation, business, money, news
## IPO boom enters critical phase
The startup initial public offering boom is entering a more consequential phase with steady new listings and a pipeline of companies preparing to tap investors.
## Post-listing performance split
At the September 28 close, 32 startups traded above their issue price while 22 traded below it.
## Divergent returns reveal distinction
Ten companies more than doubled from their IPO price, while four lost more than half their value.
## Public markets test long-term value
Public investors increasingly distinguish between companies with credible long-term economics and those whose earlier valuations relied on future expectations.
## Key examples of performance
Ather Energy, Eternal, and ESDS Software Solutions have risen more than threefold, while Fino Payments Bank, FirstCry, Tracxn, and Ola Electric have suffered steep declines.
## What matters for sustainability
Growth must translate into improving unit economics, operating leverage, cash generation, and sustainable profits to secure long-term value.
## The second test of maturity
The startup ecosystem must now prove it can create value long after the IPO excitement fades.
## Key takeaway

Public markets are separating startups with credible long-term economics from those with inflated valuations.