E-commerce players ramp up ad spends in FY25

While topline growth was visible across companies, profitability outcomes varied, with some managing sharp turnarounds and others facing widening losses despite bigger revenues

by Chehneet Kaur
Published: Sep 16, 2025 9:27 AM | 4 min read

India’s e-commerce industry stepped up its advertising and promotional outlays in FY25 as platforms sought to deepen consumer engagement and strengthen brand equity in a fiercely competitive marketplace.

While topline growth was visible across companies, profitability outcomes varied, with some managing sharp turnarounds and others facing widening losses despite bigger revenues.

Ad spends surge across the board

Marketing budgets expanded notably during the year. Flipkart increased its advertising and promotional expenses by 176.8 percent to Rs 26.3 crore in FY25 from Rs 9.5 crore in FY24.

Myntra raised its allocation by 25.5 percent to Rs 210.5 crore against Rs 167.7 crore in FY24.

Reliance Retail, which operates Ajio, reported advertising and promotional spends of Rs 1,206.5 crore in FY25, a 22.1 percent rise from Rs 987.7 crore in the previous year. (RIL doesn’t specify ad spends for Ajio)

Nykaa also raised its marketing and advertising expenditure, investing Rs 995 crore in FY25 compared with Rs 739 crore in FY24, a 34.6 percent increase.

Revenue growth with mixed profitability

Strong topline momentum was visible, though the translation into profitability differed across players. Flipkart’s revenue from operations climbed 17.4 percent to Rs 82,787.3 crore in FY25 from Rs 70,541.9 crore in FY24, with total income reaching Rs 83,104.6 crore. However, losses deepened to Rs 5,188.9 crore, a 22.1 percent rise from Rs 4,248.3 crore in the previous year.

Myntra’s revenue from operations rose 18 percent to Rs 604.3 crore against Rs 512.2 crore in FY24. The platform reported a sharp turnaround in profitability with net profit of Rs 54.8 crore in FY25, compared with just Rs 3.1 crore in FY24.

Reliance Retail, Ajio’s parent, reported consolidated revenue from operations of Rs 2.9 lakh crore in FY25, up 6.6 percent from Rs 2.7 lakh crore in FY24. Within this, Ajio maintained steady performance, supported by an expanding product catalogue and the introduction of new brands.

Nykaa reported consolidated revenue from operations of Rs 7,949.8 crore in FY25, up 24.5 percent from Rs 6,385.6 crore a year earlier. Total income stood at Rs 7,977.1 crore. Profit for the year surged 81.3 percent to Rs 72.1 crore against Rs 39.7 crore in FY24, marking one of the strongest improvements in the sector.

Campaign push during FY25

The rise in spends was complemented by high-visibility campaigns designed to strengthen recall and attract new cohorts. Flipkart unveiled the Gen Z-focused “After Dark #IYKYFK” in the run-up to Big Billion Days, the humour-led “AC Deals So Good, India Rahega Cool” and a regional Gudi Padwa activation in Maharashtra.

Myntra leaned on star power with EORS 22 featuring Shah Rukh Khan and Kiara Advani, the Birthday Blast with celebrity-led films and Myntra Beauty’s “Discover the U in Beauty” anchored by Anushka Sharma. Its regional activations included “Palich Palich Pongal” in Tamil Nadu, alongside a Gen Z versus Millennials campaign for its FWD vertical.

Ajio continued to build its bold positioning through the “Because Fashion” Big Bold Sale, the AI-powered “Great Fashion Price Crash” during the All Stars Sale and the Independence Day themed #FashionBeyondLabels campaign.

Nykaa turned to experience-driven marketing, with initiatives such as Nykaa Wali Shaadi, the Valentine Pink Love Sale and “Discover What’s Next” featuring Sharvari and Sheeba Chaddha. These were aimed at enhancing brand equity and expanding its lifestyle positioning.

The bigger picture

The financial disclosures highlight how marketing is increasingly being used as a strategic lever in India’s e-commerce ecosystem. Myntra’s campaigns coincided with higher revenues and a sharp turnaround in profits, aided by cost discipline.

Flipkart continued to grapple with the scale-profitability paradox, with revenues rising but losses widening. Reliance Retail’s growth showed the advantage of ecosystem integration, with Ajio benefitting from its parent’s scale, although higher marketing spends weighed on the bottom line.

Nykaa stood out for balancing aggressive marketing with healthy revenue growth and a significant jump in profits, aided by customer additions and experiential campaigns.

Sustaining aggressive marketing outlays while maintaining profitability will remain the defining challenge in an increasingly fragmented digital commerce landscape in the coming fiscals.