Myntra spends Rs 2,326 Cr on advertising for Rs 5,242 Cr revenue in FY26

Myntra, the fashion e-commerce platform owned by Flipkart, reported a decline in operating revenue in FY26, mainly due to a 53% drop in collections from logistics services. The company also swung to a net loss of Rs 579 crore from a profit in the previous fiscal year, largely steered by restructuring costs linked to its reverse flip from Singapore to India.

Myntra’s revenue from operations fell 13.5% year-on-year to Rs 5,242.5 crore in FY26 from Rs 6,063.8 crore in FY25, according to its financial statements sourced from the Registrar of Companies (RoC).

Myntra earns revenue from marketplace, logistics, advertising and other services. Marketplace services remained its largest revenue stream and contributed 50.7% of operating revenue. Revenue from this segment rose 3% to Rs 2,657.3 crore in FY26. The segment earns fees and commissions from sellers who use Myntra’s online marketplace.

Revenue from logistics services, which includes fees for delivery and related services, declined 53.2% to Rs 1,119.2 crore in FY26 from Rs 2,390.5 crore in FY25. The sharp decline in this segment was the primary reason behind the fall in overall operating revenue.

Advertising services revenue grew 35.2% to Rs 1,236.4 crore in FY26 from Rs 914.5 crore a year ago and contributed 23.6% to operating revenue. The segment earns fees from brands and sellers for ads on Myntra’s platform.

Revenue from other operating services stood at Rs 229.6 crore in FY26 from Rs 178.6 crore in FY25. This category includes collection from marketing services, liabilities written back during the year and incentives from vendors.

The firm made Rs 73.3 crore from non-operating revenue, primarily from royalty income, which pushed its total revenue to Rs 5,315.8 crore in FY26.

For the e-commerce platform, advertising remained Myntra’s largest cost component at Rs 2,326.5 crore, which rose 10.5% and accounted for 41% of overall cost in FY26. Logistics charges, which cover costs related to order delivery and fulfilment, declined 16.6% to Rs 1,666.6 crore in FY26 from Rs 1,999.2 crore in FY25.

Employee benefit expenses rose 4% to Rs 777 crore in FY26, including Rs 235.4 crore in ESOP costs. IT expenses stood at Rs 323.8 crore, while payment gateway charges amounted to Rs 174.4 crore during the last fiscal year. Other overheads, including finance costs, legal & professional fees, and after sale services, added another Rs 455.5 crore to the total cost.

In the end, Myntra’s total expenses largely remained stable at Rs Rs 5,757.7 crore in FY26 compared to Rs 5,726 crore in FY25.

Myntra swung to a net loss of Rs 579.4 crore in FY26 from a net profit of Rs 548.5 crore in FY25. The sharp decline in logistics revenue weighed on overall revenue, while Rs 137.5 crore in deferred tax and higher advertising expenses added to the pressure on its bottom line.

Its ROCE and EBITDA margin worsened to -23.03% and -7.09%, respectively, while its EBITDA loss stood at Rs 435 crore in FY26.

On a unit basis, the company spent Rs 1.1 to earn a rupee during the fiscal year. The Bengaluru-based firm recorded cash and bank balances of Rs 21.5 crore while its current assets were worth Rs 4,941 crore in FY26.

While nowhere as bad as Cleartrip, the other Flipkart group firm whose financials we analysed today, there is little doubt that Myntra remains in a hyper competitive market where each point of growth has become a task.  Even after accounting for the fall due to the logistics line spin out, marketplace revenue grew just 3%, so the core fee engine is barely moving.

Advertising tells the contrast. Myntra spent Rs 2,326.5 crore on ads, roughly 1.9 times the Rs 1,236.4 crore it earned from selling ads. Growth in ad income (35%) is healthy, but customer acquisition remains costly.

So while the Rs 579.4 crore net loss is partly cosmetic, the fact remains that  this is a business that continues to operate well outside the rosy projections we have heard over the years on pitches and calls. Sometimes, looking at all the deals and offerings from Myntra and other online players including quick commerce ones, it seems that the whole business exists for advertising income and fees from co-branded credit cards. That might help to make up the numbers, but is definitely not a model, or a brand to be thrilled about.