Myntra’s revenue declines 13.5% in FY26 as logistics revenue plummets

Revenue decline and net loss

Myntra, the fashion e-commerce platform owned by Flipkart, reported a 13.5% decline in operating revenue for FY26, dropping to Rs 5,242.5 crore. According to Entrackr, this decline was primarily driven by a 53.2% reduction in logistics services revenue, which fell to Rs 1,119.2 crore from Rs 2,390.5 crore in FY25.

The company also swung to a net loss of Rs 579.4 crore in FY26, reversing a net profit of Rs 548.5 crore in the previous fiscal year. The loss was partly attributed to restructuring costs linked to Myntra’s reverse flip from Singapore to India, as well as a deferred tax charge of Rs 137.5 crore.

Advertising and cost pressures

Despite the overall revenue decline, Myntra’s advertising revenue grew 35.2% to Rs 1,236.4 crore, accounting for 23.6% of operating revenue. However, advertising expenses rose 10.5% to Rs 2,326.5 crore, making it the largest cost component for the company. This meant Myntra spent nearly Rs 1.9 for every rupee earned from advertising.

The company’s total expenditure to earn a rupee of revenue increased to Rs 1.1 in FY26, reflecting heightened cost pressures.

Marketplace and logistics performance

Marketplace services remained Myntra’s largest revenue stream, contributing 50.7% of operating revenue with a 3% increase to Rs 2,657.3 crore in FY26. However, the sharp decline in logistics revenue, which fell by over half, offset these gains.

Logistics charges also declined by 16.6% to Rs 1,666.6 crore, further impacting the company’s financial performance.

Financial ratios and liquidity

Myntra’s financial ratios deteriorated in FY26. The company’s Return on Capital Employed (ROCE) worsened to -23.03%, while its EBITDA margin fell to -7.09%, resulting in an EBITDA loss of Rs 435 crore. These figures underscore the challenges Myntra faced in managing costs and maintaining profitability.

Despite the losses, Myntra reported cash and bank balances of Rs 21.5 crore, with current assets totaling Rs 4,941 crore.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

Myntra’s FY26 results highlight the challenges of balancing growth and cost management in a competitive e-commerce landscape. The decline in logistics revenue—itself a high-margin segment—suggests either a strategic shift or operational struggles, while the growth in advertising revenue indicates a push to diversify income streams. However, the fact that advertising spend nearly doubled the revenue from ads is a red flag for efficiency.

For founders and operators, Myntra’s experience underscores the importance of scrutinizing cost structures, especially in high-spend areas like marketing. The company’s reverse flip may have long-term strategic benefits, but the short-term financial hit from restructuring costs is a reminder that such moves require careful planning. The deterioration in financial ratios also signals that profitability in e-commerce isn’t just about revenue growth—it’s about sustainable unit economics.

Key takeaways

• Declining logistics revenue may signal a broader shift in Myntra’s business model or operational challenges. Founders should assess whether similar revenue streams in their businesses are sustainable.
• Advertising spend must be closely monitored to ensure it delivers a positive return. Myntra’s experience shows how quickly costs can spiral without commensurate revenue growth.
• Restructuring costs, such as those from a reverse flip, can have short-term financial consequences. Founders considering similar moves should weigh the long-term benefits against immediate financial impacts.
• Marketplace services remain a critical revenue driver for Myntra. E-commerce operators should prioritize maintaining and growing this segment while diversifying income streams.
• Cost management is crucial in a high-competition sector like e-commerce. Myntra’s increased spend per rupee earned serves as a cautionary tale for startups focusing on growth over profitability.

FAQ

Why did Myntra’s logistics revenue decline so sharply in FY26?

According to Entrackr, Myntra’s logistics services revenue dropped 53.2% to Rs 1,119.2 crore in FY26. While the exact reasons are not confirmed, this decline could reflect a strategic pivot, operational challenges, or reduced demand for third-party logistics services.

How did Myntra’s advertising revenue perform compared to its advertising spend?

Myntra’s advertising revenue grew 35.2% to Rs 1,236.4 crore in FY26, but its advertising spend rose 10.5% to Rs 2,326.5 crore. This means the company spent nearly Rs 1.9 for every rupee earned from advertising.

What impact did Myntra’s reverse flip have on its financials?

The reverse flip from Singapore to India contributed to Myntra’s net loss of Rs 579.4 crore in FY26, partly due to restructuring costs. While the move may have long-term strategic benefits, it added financial pressure in the short term.

What were Myntra’s largest revenue streams in FY26?

Marketplace services remained Myntra’s largest revenue stream, contributing 50.7% of operating revenue at Rs 2,657.3 crore. Advertising services were the second-largest, accounting for 23.6% of revenue.

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