Myntra Reports Rs 579 Crore Loss Amid Rs 5,242 Crore Revenue in FY26
Myntra's financial results for FY26 reveal a significant net loss driven by declining logistics revenue and high advertising costs.
Myntra's operating revenue decreased by 13.5% to Rs 5,242.5 crore in FY26.
The company incurred a net loss of Rs 579 crore, contrasting with a profit of Rs 548.5 crore in FY25.
Advertising expenses reached Rs 2,326.5 crore, accounting for 41% of total costs.
Myntra, the fashion e-commerce platform under Flipkart, has reported a substantial net loss of Rs 579 crore for the fiscal year 2026 (FY26), a stark contrast to the profit of Rs 548.5 crore achieved in the previous year. The decline in operating revenue, which fell by 13.5% to Rs 5,242.5 crore from Rs 6,063.8 crore in FY25, has been attributed primarily to a dramatic 53% drop in revenue from logistics services.
The company's financial performance reflects a challenging environment, particularly in the logistics sector, where revenue plummeted to Rs 1,119.2 crore in FY26 from Rs 2,390.5 crore in FY25. This decline in logistics revenue was a significant factor contributing to the overall drop in operational earnings. In contrast, Myntra's marketplace services, which represent the largest revenue source, saw a modest growth of 3%, generating Rs 2,657.3 crore in FY26.
Advertising revenue, however, showed a positive trend, increasing by 35.2% to Rs 1,236.4 crore, which constituted 23.6% of the total operating revenue. This segment earns fees from brands and sellers for advertisements on the platform, indicating a growing reliance on advertising as a revenue stream. Additionally, revenue from other operating services rose to Rs 229.6 crore, reflecting a diverse income base despite the challenges faced.
The financial strain is evident in Myntra's expenditure, with advertising costs reaching Rs 2,326.5 crore, making up 41% of total expenses. Logistics costs also saw a decline, dropping to Rs 1,666.6 crore, while employee benefits increased to Rs 777 crore, including significant ESOP costs. Overall, Myntra's total expenses remained relatively stable at Rs 5,757.7 crore, indicating tight cost management amidst revenue challenges.
Looking ahead, Myntra faces a competitive landscape where customer acquisition costs remain high. The company's strategy will likely focus on enhancing its marketplace revenue and optimizing advertising expenditures. As Myntra navigates these financial hurdles, stakeholders will be keenly observing its next moves in the evolving e-commerce market.
