Myntra, the fashion and lifestyle e-commerce platform owned by the Flipkart Group, spent ₹2,326.5 crore on advertising in the financial year 2025-26, even as its revenue declined and it slipped into a net loss. The company’s advertising expenditure rose 10.5% from the previous financial year, highlighting the scale of investment required to attract shoppers and maintain its position in India’s competitive online fashion market.
According to financial statements filed with the Registrar of Companies, Myntra reported a net loss of ₹579.4 crore in FY26, compared with a net profit of ₹548.5 crore in FY25. Its revenue from operations fell 13.5% year-on-year to ₹5,242.5 crore from ₹6,063.8 crore.
The figures present a mixed picture for the company. While its advertising business recorded strong growth, a sharp decline in logistics revenue pulled down overall operating income. Advertising also remained its largest expense, accounting for a substantial share of the company’s spending.
Myntra’s advertising expenditure was nearly 1.9 times the ₹1,236.4 crore it earned from advertising services during the year. The company generates advertising income by charging brands and sellers for promotional placements on its platform. This business has become an important revenue stream as e-commerce platforms seek to monetise their customer base beyond marketplace commissions.
Revenue from advertising services increased 35.2% in FY26 from ₹914.5 crore in the previous year. The segment contributed around 23.6% of Myntra’s operating revenue, making it one of the company’s stronger-performing businesses.
However, the increase in advertising income did not offset the overall pressure on revenue and profitability. Marketplace services remained Myntra’s largest operating revenue source, contributing approximately 50.7% of the total. Income from this segment rose 3% to ₹2,657.3 crore from ₹2,580.2 crore in FY25.
The modest increase suggests that the company’s core marketplace revenue grew at a slower pace than its advertising business. Marketplace services primarily generate income through fees and commissions charged to sellers using the platform.
The biggest setback came from logistics services. Revenue from logistics and shipping fell 53.2% to ₹1,119.2 crore in FY26 from ₹2,390.5 crore a year earlier. This sharp decline was the main reason for the fall in total operating revenue.
Excluding logistics and shipping services, Myntra’s operating revenue actually increased 12% to ₹4,123.3 crore from ₹3,673.3 crore in FY25. This indicates that its marketplace, advertising and other operating businesses continued to grow even as the logistics segment contracted.
Revenue from other operating services rose to ₹229.6 crore from ₹178.6 crore. Including non-operating income of ₹73.3 crore, largely from royalty income, Myntra’s total revenue stood at ₹5,315.8 crore during the year.
On the cost side, total expenses remained broadly stable at ₹5,757.7 crore, compared with ₹5,726 crore in FY25. Advertising was the largest individual expense, while logistics-related costs declined 16.6% to ₹1,666.6 crore from ₹1,999.2 crore.
Employee benefit expenses increased around 4% to ₹777 crore, including ₹235.4 crore in employee stock ownership plan costs. Information technology expenses stood at ₹323.8 crore, while payment gateway charges amounted to ₹174.4 crore.
The company’s financial performance was also affected by restructuring costs associated with its reverse flip from Singapore to India. Its financial statements recorded a loss before tax of ₹441.9 crore, compared with a profit before tax of ₹411 crore in FY25. The previous year’s profit included a deferred tax credit, making the year-on-year comparison more complex.
Myntra’s advertising spending reflects the pressure on online retailers to remain visible in a crowded market where brands compete for shoppers through discounts, promotional campaigns and sponsored listings. At the same time, the company earns money by selling advertising space to those same brands and sellers.
The challenge will be to turn this spending into sustainable growth and stronger margins. Higher advertising revenue is encouraging, but the gap between advertising expenditure and advertising income highlights the scale of the investment involved.
Myntra has reported positive customer trends in the current financial year. The company said customer growth in FY27 had reached around 30% so far and that it was on track to reach 100 million monthly active users during the festive season. Its Big Fashion Festival, which began on October 8, recorded a fourfold increase in demand over normal business levels during its first 24 hours, according to the company.
These figures suggest continued consumer interest, particularly during major shopping events. However, the company will need to convert that demand into profitable transactions while managing advertising and operational costs.