Myntra’s ad spend up 10.5% to ₹2,326 crore as FY26 revenue falls 13.5%

Myntra spent ₹2,326.5 crore on advertising in FY26, nearly 1.9 times the ₹1,236.4 crore it earned from advertising services on its platform. While advertising revenue grew 35.2% year-on-year, advertising expenditure rose 10.5%, highlighting the scale of investment behind the fashion e-commerce platform’s efforts to attract consumers and drive transactions.

The Flipkart-owned company reported a net loss of ₹579.4 crore in FY26, compared with a net profit of ₹548.5 crore in the previous fiscal year. Myntra’s revenue from operations declined 13.5% to ₹5,242.5 crore in FY26 from ₹6,063.8 crore in FY25, primarily due to a sharp fall in revenue from logistics services. Its total revenue, including non-operating income, stood at ₹5,315.8 crore.

Advertising remained the company’s largest expense component, accounting for 41% of its total expenses.  Advertising services revenue rose from ₹914.5 crore in FY25 to ₹1,236.4 crore in FY26, contributing 23.6% of operating revenue. The segment earns fees from brands and sellers for advertising placements on Myntra’s platform.

Marketplace services remained the company’s largest operating revenue stream, contributing 50.7% of revenue. Income from the segment, which includes fees and commissions charged to sellers, grew 3% to ₹2,657.3 crore in FY26. In contrast, revenue from logistics services fell 53.2% to ₹1,119.2 crore from ₹2,390.5 crore in FY25. The segment includes fees from delivery and related services, and its decline was the primary driver of the fall in overall operating revenue.

Revenue from other operating services increased to ₹229.6 crore from ₹178.6 crore. This category includes marketing services, liabilities written back during the year and vendor incentives. Non-operating revenue stood at ₹73.3 crore, primarily from royalty income. Myntra’s total expenses remained broadly stable at ₹5,757.7 crore in FY26, compared with ₹5,726 crore in FY25. Advertising expenditure rose 10.5% to ₹2,326.5 crore, making it the company’s largest cost component.

Logistics expenses declined 16.6% to ₹1,666.6 crore from ₹1,999.2 crore in the previous fiscal year. Employee benefit expenses increased 4% to ₹777 crore, including ₹235.4 crore in employee stock ownership plan (ESOP) costs. IT expenses stood at ₹323.8 crore, while payment gateway charges amounted to ₹174.4 crore. Other overheads, including finance costs, legal and professional fees, and after-sales services, totalled ₹455.5 crore.

Despite broadly stable expenses, Myntra’s bottom line deteriorated sharply. The company reported an EBITDA loss of ₹435 crore, with its EBITDA margin at -7.09%. Its return on capital employed (ROCE) stood at -23.03%. The financial statements also recorded ₹137.5 crore in deferred tax, adding to the pressure on reported profitability.