Myntra FY26 Loss Explained: How a ₹5,242 Crore Fashion Giant Swung to a ₹579 Crore Loss (India Tech)
Illustrative image: a clothing store interior. Myntra sells fashion through third-party sellers on its marketplace. Image: Wikimedia Commons, public domain.
TL;DR: Myntra FY26 loss explained in one line: Flipkart's fashion arm swung from a ₹548.5 crore profit in FY25 to a ₹579.4 crore net loss in FY26, as operating revenue fell 13.5% to ₹5,242.5 crore — while advertising spend rose to ₹2,326.5 crore, nearly double what Myntra earned from selling ads.
📌 KEY HIGHLIGHTS
- Myntra reported a net loss of ₹579.4 crore in FY26, against a net profit of ₹548.5 crore in FY25, according to its Registrar of Companies filings.
- Operating revenue fell 13.5% to ₹5,242.5 crore, dragged down by a 53.2% plunge in logistics and shipping revenue to ₹1,119.2 crore.
- Advertising spend rose 10.5% to ₹2,326.5 crore — about 41% of all expenses and 1.9 times the ₹1,236.4 crore Myntra earned from advertising services.
- Strip out logistics, and the picture improves: revenue excluding logistics grew 12% to ₹4,123.3 crore, and the EBITDA loss narrowed to ₹435 crore.
- Parent Flipkart Group posted ₹1.45 lakh crore in revenue with a narrowed ₹8,468 crore loss, as it prepares for a possible IPO after moving its domicile back to India.
Myntra FY26 loss explained: what the numbers say
Flipkart-owned fashion e-commerce marketplace Myntra slipped into the red in the financial year ended 31 March 2026. The Bengaluru-based company, founded in 2007 by Mukesh Bansal, Ashutosh Lawania and Vineet Saxena and acquired by Flipkart for $240 million in 2014, runs a marketplace where third-party sellers sell fashion to shoppers, alongside advertising and logistics services.
The headline numbers, from Myntra's filings with the Registrar of Companies as reported by Entrackr, MediaNama, Mint and exchange4media, tell a story of a company spending heavily to hold its ground in a crowded fashion market:
| Metric (FY26) | Figure | vs FY25 |
|---|---|---|
| Net loss / profit | ₹579.4 crore loss | ₹548.5 crore profit |
| Operating revenue | ₹5,242.5 crore | ₹6,063.8 crore (−13.5%) |
| Marketplace & collection services | ₹2,657.3 crore (50.7% of revenue) | ₹2,580.2 crore (+3%) |
| Advertising services revenue | ₹1,236.4 crore | ₹914.5 crore (+35.2%) |
| Logistics & shipping revenue | ₹1,119.2 crore | ₹2,390.5 crore (−53.2%) |
| Advertising & promotion spend | ₹2,326.5 crore | ₹2,105.3 crore (+10.5%) |
| Total expenses | ₹5,757.7 crore | ₹5,726 crore (+0.6%) |
| EBITDA loss | ₹435 crore | ₹535.9 crore loss (improved) |
| Total income (incl. other income ₹73.3 crore) | ₹5,315.8 crore | ₹6,137 crore (−13.4%) |
A note on the figures: Inc42 reports the FY26 net loss at ₹581.8 crore against a ₹546.3 crore FY25 profit — a small gap that reflects different readings of the same filings. The figures in this post follow the majority reading (₹579.4 crore loss / ₹548.5 crore profit).
Illustrative image: a courier handing over a parcel. Myntra's logistics revenue fell 53.2% in FY26, the main drag on its topline. Image: Wikimedia Commons / Meanwell Packaging, CC BY 2.0.
Why the revenue fell — and why the loss is not the whole story
The revenue decline needs context. The entire fall came from logistics and shipping services, which more than halved to ₹1,119.2 crore. Excluding that line, Myntra's revenue actually grew 12% to ₹4,123.3 crore. The core marketplace business — fees and commissions from sellers — grew 3% to ₹2,657.3 crore and remains the largest revenue stream at 50.7% of operating revenue, though that modest growth shows the core fee engine is barely moving in a hyper-competitive market.
The sharpest contradiction in the results is advertising. Myntra earned ₹1,236.4 crore from selling ad placements to brands and sellers, up 35.2% — but spent ₹2,326.5 crore advertising itself, up 10.5%. Advertising was the company's single largest cost, about 41% of total expenses, and the spend went beyond conventional ads into creator-led recommendations, affiliate commerce, microdramas and shoppable content as Myntra fights to win and keep shoppers.
Other costs stayed mostly flat: total expenses rose just 0.6% to ₹5,757.7 crore. Employee benefit expenses rose 3.8% to ₹776.9 crore (including ₹235.4 crore in ESOP costs), direct expenses fell 13.9% to ₹1,841 crore, and logistics charges fell 16.6% to ₹1,666.6 crore. A ₹137.5 crore deferred tax asset write-off added to the pressure on the bottom line, and on a unit basis Myntra spent ₹1.10 to earn every rupee of revenue. Its EBITDA margin stood at −7.09% and return on capital employed at −23.03%.
The results land as new leadership takes over: Sharon Pais was elevated earlier in 2026 to head Myntra's fashion marketplace, replacing Nandita Sinha, and former Instacart executive Pramod Adiddam joined as chief technology officer. This FY26 cost structure is one of the first things the new team inherits.
Why it matters for India readers
Myntra's numbers sit inside a bigger Flipkart story. Flipkart Group, which shifted its domicile back to India from Singapore in March 2026, posted consolidated FY26 operating revenue of ₹1.45 lakh crore, up 18.2%, while its net loss narrowed 2.1% to ₹8,468 crore. The restructuring brought Flipkart's Singapore-based subsidiaries — logistics arm eKart, Myntra, fintech platform super.money and travel platform Cleartrip — under Flipkart Internet Private Limited, and the group is preparing for a possible stock-market listing. Myntra's swing to a loss is therefore not just one company's bad year; it is a line item investors will read closely when Flipkart's IPO papers arrive.
For Indian shoppers, the practical read is simpler. Myntra is not pulling back — it spent more on marketing, not less, and its quick-commerce sibling Flipkart Minutes has grown to nearly 1,200 micro-fulfilment centres across more than 150 cities, targeting around 1,500 by year-end. Expect more creator content, more shoppable videos and more platform fees, not fewer: Myntra has already begun levying a platform fee, which brings in a sizeable new revenue line.
And for anyone tracking India's startup economy, Myntra's year is a useful counterpoint to the week's IPO euphoria — manufacturing platform Zetwerk's debut, which listed at a premium and then closed below its issue price. Big revenue, heavy marketing and a loss-making bottom line can coexist for a long time in Indian e-commerce; the question is whether the growth underneath justifies the spend.
Should you care?
✅ Verdict: If you shop on Myntra or follow Indian startups, these results matter — not as a reason to stop using the platform, but as a reality check. The core marketplace is still growing and losses narrowed at the EBITDA level, but spending ₹2,326 crore on ads to earn ₹1,236 crore from ads is not a sustainable loop. Watch whether the new leadership trims that ratio — and whether Flipkart's IPO prospectus treats Myntra as a growth asset or a cost centre. This post is not investment advice.
What to watch next
Three things will decide how this story reads a year from now: whether marketplace revenue growth accelerates beyond 3% as the new leadership settles in; whether advertising spend falls back toward advertising income; and what Flipkart's IPO filings say about Myntra's role in the group. The next quarterly updates — and any movement on the Flipkart listing — will be the first real tests.
FAQs
Why did Myntra report a loss in FY26?
Myntra swung from a ₹548.5 crore profit in FY25 to a ₹579.4 crore net loss in FY26. The main drivers were a 53.2% fall in logistics revenue, advertising spend rising to ₹2,326.5 crore (about 41% of expenses), and a ₹137.5 crore deferred tax write-off, while total expenses stayed nearly flat at ₹5,757.7 crore.
What was Myntra's revenue in FY26?
Myntra's operating revenue was ₹5,242.5 crore in FY26, down 13.5% from ₹6,063.8 crore in FY25. Including other income of ₹73.3 crore, total income stood at ₹5,315.8 crore. Excluding logistics, revenue grew 12% to ₹4,123.3 crore.
How much does Myntra spend on advertising?
Myntra spent ₹2,326.5 crore on advertising and business promotion in FY26, up 10.5% from ₹2,105.3 crore in FY25. That is nearly 1.9 times the ₹1,236.4 crore it earned from advertising services on its own platform, even though that ad income grew 35.2%.
Is Flipkart planning an IPO?
Flipkart is preparing for a possible stock-market listing after moving its domicile from Singapore back to India in March 2026. Its FY26 consolidated revenue rose 18.2% to ₹1.45 lakh crore while its net loss narrowed to ₹8,468 crore, but no IPO date or price band has been announced yet.
Takeaway: Myntra's FY26 shows a fashion giant spending heavily to stay on top — ₹2,326 crore on ads against ₹5,242 crore of revenue — while its core marketplace grows only slowly. The loss is real, but so is the growth underneath it; the next year, and Flipkart's IPO papers, will show which one wins.
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Sources
- Inc42 — Myntra Slips Into The Red In FY26, Reports ₹582 Cr Loss (24 Oct 2026)
- MediaNama — Myntra slips into the red in FY26, revenue declines 14%
- LiveMint — Flipkart-owned fashion e-commerce giant Myntra's FY26 financials: How falling logistics income dragged revenue down
- Entrackr / Fintrackr — Myntra spends Rs 2,326 Cr on advertising for Rs 5,242 Cr revenue in FY26
- exchange4media — Myntra's ad spend up 10.5% to ₹2,326 crore as FY26 revenue falls 13.5%
- Related on TechByCountry: Zetwerk's IPO debut — 5.5% premium, then an 8.4% fall, Salesforce's $5.66 billion Braze acquisition, and Even Healthcare's $50 million Series B.
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