Myntra Financial Performance in FY26
Myntra, a leading fashion e-commerce platform under Flipkart, experienced a downturn in operating revenue during FY26, primarily driven by a 53% decrease in logistics service collections. The company faced a net loss of Rs 579 crore, a reversal from the previous fiscal year’s profit, largely attributed to restructuring expenses during its transition from Singapore back to India.
According to financial statements obtained from the Registrar of Companies (RoC), Myntra’s operational revenue dropped by 13.5% year-on-year, amounting to Rs 5,242.5 crore in FY26 compared to Rs 6,063.8 crore in FY25. Myntra generates income through various streams including marketplace services, logistics, advertising, and additional services.
Revenue Breakdown for Myntra in FY26
The marketplace services continued to be Myntra’s largest revenue source, contributing 50.7% of operational revenue. This segment saw a 3% increase, reaching Rs 2,657.3 crore in FY26. Earnings from this area come from fees and commissions charged to sellers utilising Myntra’s online marketplace.
Conversely, revenue from logistics services, which encompasses fees for delivery and related aspects, plummeted by 53.2% to Rs 1,119.2 crore in FY26 from Rs 2,390.5 crore in FY25. This substantial decline was a key factor in the overall drop in operating revenue.
Advertising services witnessed strong growth, with revenue rising by 35.2% to Rs 1,236.4 crore in FY26 from Rs 914.5 crore a year prior. This segment constitutes 23.6% of the operational revenue, as fees are collected from brands and sellers for advertisements on Myntra’s platform.
Revenue from other operational services reached Rs 229.6 crore in FY26, up from Rs 178.6 crore in FY25. This category includes income from marketing services, written-back liabilities, and vendor incentives. The firm reported Rs 73.3 crore from non-operational revenue, mainly from royalty income, bringing its total revenue to Rs 5,315.8 crore in FY26.
Expenses Analysis of Myntra in FY26
For Myntra, advertising represented the largest expense at Rs 2,326.5 crore, an increase of 10.5%, accounting for 41% of total costs in FY26. Logistics expenses, related to order delivery and fulfilment, decreased by 16.6% to Rs 1,666.6 crore in FY26 from Rs 1,999.2 crore in FY25. Employee benefits rose 4% to Rs 777 crore, which included Rs 235.4 crore in ESOP costs. IT expenses amounted to Rs 323.8 crore, while payment gateway fees were Rs 174.4 crore over the last fiscal year. Additional overheads, like financial costs, legal services, and after-sale services, contributed an extra Rs 455.5 crore to the overall expenditure.
Myntra’s total expenses remained fairly consistent at Rs 5,757.7 crore in FY26 compared to Rs 5,726 crore in FY25.
Net Loss and Financial Health of Myntra
The company reported a net loss of Rs 579.4 crore in FY26, a stark contrast to the net profit of Rs 548.5 crore achieved in FY25. The sharp decline in logistics revenue significantly impacted total revenue, while Rs 137.5 crore in deferred tax coupled with rising advertising costs burdened the company’s profitability. The return on capital employed (ROCE) and earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin dropped to -23.03% and -7.09%, respectively, with the EBITDA loss recorded at Rs 435 crore in FY26.
On a unit basis, Myntra expended Rs 1.1 to generate one rupee in revenue during the fiscal year. The Bengaluru-based entity held cash and bank balances amounting to Rs 21.5 crore, with current assets worth Rs 4,941 crore in FY26.
Although Myntra’s situation is not as dire as that of Cleartrip, another sibling firm under Flipkart whose financials were recently analysed, it is clear that Myntra operates in a highly competitive landscape where every increment of growth is difficult to achieve. After adjustments for the logistics segment’s spin-out, marketplace revenue experienced only a modest growth of 3%, indicating that the core revenue model is barely progressing.
The contrasting scenario with advertising is striking. Myntra invested Rs 2,326.5 crore in advertising, approximately 1.9 times the Rs 1,236.4 crore it generated from selling ads. While the growth in ad revenue at 35% is robust, acquiring customers continues to be a substantial expense.
Therefore, while the Rs 579.4 crore net loss may appear somewhat superficial, it is essential to recognise that Myntra is functioning far beyond the optimistic forecasts encountered over the years during presentations and discussions. At times, reflecting on the array of deals and offerings from Myntra and other online platforms, including rapid commerce entities, it seems that the entire business model is largely reliant on advertising income and fees from co-branded credit cards. This may assist in balancing the numbers but certainly does not present a model or brand worthy of admiration.