Flipkart-owned fashion marketplace Myntra has slipped back into the red. The Bengaluru-based company reported a net loss of ₹581.8 crore in the financial year ended March 31, 2026 (FY26), reversing a net profit of ₹546.3 crore in FY25, according to RoC filings reported by Inc42. It is a sharp reminder that even India's largest fashion platform is still fighting for profitable growth, and a cautionary tale for founders tracking startup funding in India.
Revenue falls as logistics shrinks
Myntra's operating revenue fell 13.5% to ₹5,242.5 crore in FY26, from ₹6,063.8 crore in FY25. The headline decline, however, is mostly a logistics story. Revenue from logistics and shipping services plunged 53.2% to ₹1,119.2 crore, from ₹2,390.5 crore a year earlier, while the core marketplace business actually grew.
Marketplace and collection services, Myntra's largest stream at 50.7% of operating revenue, rose 3% to ₹2,657.3 crore. Advertising services grew much faster, up 35.2% to ₹1,236.4 crore from ₹914.5 crore. Other operating revenue added ₹229.6 crore, taking total income, including ₹73.3 crore of other income, to ₹5,315.8 crore, down 13.4% from ₹6,137 crore. The company's EBITDA loss stood at ₹435 crore in FY26.
Advertising: earning ₹1,236 crore, spending ₹2,326 crore
The most striking number in the filings is the advertising gap. Entrackr's analysis of the same filings put Myntra's advertising and business promotion spend at ₹2,326.5 crore in FY26, up 10.5% and accounting for 41% of total expenses of ₹5,757.7 crore. In other words, Myntra spent nearly 1.9 times what it earned from selling advertising on its own platform. Total expenses were broadly flat against ₹5,726 crore in FY25, but a ₹137.5 crore deferred tax charge added to the pressure on the bottom line. On a unit basis, the company spent ₹1.10 to earn every rupee of revenue.
Founded in 2007 by Mukesh Bansal, Ashutosh Lawania and Vineet Saxena, Myntra was acquired by Flipkart for $240 million in 2014. Its parent, Flipkart Group, reported consolidated FY26 operating revenue of ₹1.45 lakh crore, up 18.2%, with its net loss narrowing 2.1% to ₹8,468 crore. Leadership has also changed: Sharon Pais has been elevated to head the fashion marketplace, replacing Nandita Sinha, and former Instacart executive Pramod Adiddam has joined as chief technology officer.
Why it matters for founders
Myntra's FY26 shows that topline growth and profitability can move in opposite directions. Strip out the logistics distortion and the core marketplace grew just 3% while ad spend swallowed 41% of costs. The lesson: in a crowded consumer market, paid growth without a matching organic engine turns into a treadmill — audit your largest cost line before you scale it further.