Flipkart-owned fashion e-commerce giant Myntra’s FY26 financials: How falling logistics income dragged revenue down
Flipkart-owned online fashion platform Myntra’s operating revenue declined in FY26, as a sharp fall in income from logistics services outweighed growth in advertising and marketplace services.
Myntra earns revenue from marketplace services, logistics, advertising and other operating services. Marketplace services remained its largest revenue stream, contributing 50.7% of operating revenue. Revenue from this segment grew 3% to ₹2,657.3 crore in FY26. The segment earns fees and commissions from sellers using Myntra’s online marketplace.
Logistics services revenue, which includes fees for delivery and related services, fell 53.2% to ₹1,119.2 crore in FY26 from ₹2,390.5 crore in the previous fiscal year. This sharp decline was the primary reason behind the fall in overall operating revenue.
Advertising emerged as a bright spot in Myntra’s revenue mix. Income from advertising services rose 35.2% to ₹1,236.4 crore in FY26 from ₹914.5 crore a year earlier, contributing 23.6% of operating revenue. The segment generates fees from brands and sellers for advertisements on the platform.
Revenue from other operating services increased to ₹229.6 crore in FY26 from ₹178.6 crore in FY25. This category includes collections from marketing services, liabilities written back during the year and incentives from vendors.
The company also earned ₹73.3 crore in non-operating revenue, primarily from royalty income, taking its total revenue to ₹5,315.8 crore in FY26.
However, advertising remained Myntra’s largest cost component. The company spent ₹2,326.5 crore on advertising, up 10.5% year-on-year, accounting for 41% of its overall expenses. Its advertising expenditure was nearly 1.9 times the ₹1,236.4 crore it earned from selling advertising services.
Logistics charges, which cover order delivery and fulfilment, declined 16.6% to ₹1,666.6 crore in FY26 from ₹1,999.2 crore in FY25.
Employee benefit expenses rose 4% to ₹777 crore, including ₹235.4 crore in employee stock ownership plan 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, added ₹455.5 crore.
Overall, expenses remained largely stable at ₹5,757.7 crore in FY26, compared with ₹5,726 crore a year earlier.
Myntra reported a net loss of ₹579.4 crore in FY26, against a net profit of ₹548.5 crore in FY25. Besides the decline in logistics revenue, deferred tax expenses of ₹137.5 crore and higher advertising expenditure added to the pressure on its bottom line.
Its return on capital employed deteriorated to -23.03%, while its EBITDA margin stood at -7.09%. The company reported an EBITDA loss of ₹435 crore during the year.
On a unit basis, Myntra spent ₹1.10 to earn every rupee of revenue. The Bengaluru-based company reported cash and bank balances of ₹21.5 crore and current assets worth ₹4,941 crore in FY26.
While the decline in logistics revenue was the main drag on overall operating revenue, the modest 3% growth in marketplace revenue points to limited expansion in Myntra’s core fee-generating business. Advertising income grew faster, but the cost of advertising remained substantially higher than the revenue generated from selling ad space.
Sanchari Ghosh is an Assistant Editor at Mint with over 12 years of experience in journalism, specialising in personal finance, DLT & DeFi, geopolitics and foreign policy, with a particular emphasis on how these areas intersect. <br> She writes extensively about how money works in everyday life—helping readers navigate personal finance decisions. <br> As AI reshapes investing behaviour, capital is increasingly flowing into decentralized ecosystems, redefining how assets are managed, traded, and valued. She focuses on explaining how money flows within frameworks like Distributed Ledger Technology (DLT), DeFi protocols, and crypto markets—while also exploring what the future of money could look like in a trustless, programmable financial world. <br> She also focuses on immigration-related issues, simplifying complex topics around visas, passports, overseas financial planning, and the many practical challenges Indians face while moving or living abroad. <br> Alongside personal finance, Sanchari has a strong understanding of international politics, contemporary and historical conflicts, and global state decisions. She closely tracks how geopolitical developments influence economies, markets, and individual financial choices, bringing together finance and global affairs in her reporting. <br> She began her career as a desk editor, which gave her a strong foundation in news writing. Over time, her interest naturally shifted toward personal finance. Before joining Mint in 2020, she worked DNA, The Times of India, Outlook Money, BloombergQuint, and ETMoney. At Mint, she got an opportunity to expand her coverage to include immigration and geopolitical developments while continuing to closely follow personal finance trends and market movements.As a journalist, she is committed to accuracy, intellectual rigour, and fairness. <br> She is an English Major and her work took her across cities including Delhi, Mumbai, and Pune. Living independently from an early age gave her firsthand experience in managing life and money on her own. This practical exposure sparked her strong interest in personal finance. <br> Outside the newsroom, Sanchari is a sports enthusiast who regularly plays lawn tennis and squash. In her younger years, she was also a national-level badminton player.
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