Myntra, the fashion ecommerce arm of Flipkart, saw its net profit zoom about 18X to INR 548 Cr in FY25 from INR 31 Cr in the previous fiscal year due to improvement in margins.
The company’s revenue from operations rose 18% to INR 6,043 Cr from INR 5,122 Cr in FY24.
Myntra earns revenue from three streams – marketplace services, logistics services and advertisement services.
The revenue of marketplace services vertical rose 15.6% to INR 2,051.8 Cr in FY25 from INR 1,774.6 Cr in the previous year. Logistics revenue rose 19.7% to INR 2,918.9 Cr from INR 2,439 Cr in FY24.
Meanwhile, advertisement revenue grew 28.4% to INR 914.5 Cr from INR 712.3 Cr in the previous year.
Other income, mainly from royalties, zoomed 81% to INR 94 Cr. Including other income, total revenue stood at INR 6,137Cr during the year under review.
The company’s EBITDA skyrocketed over 4X to INR 535.9 Cr from INR 123 Cr in FY24, with EBITDA margin expanding to 9% from 2%.
Notably, Myntra received a $125 Mn infusion from its Singapore-based parent in May this year. The platform is also facing regulatory scrutiny. In July this year, the Enforcement Directorate (ED) filed a case against the company and its related entities for alleged FDI violations worth INR 1,654 Cr.
Breaking Down Myntra’s Expenses
The company’s total expenditure rose 10.5% to INR 5,723.7 Cr during the period under review from INR 5,123 Cr in FY24.
Where direct expenses, including logistics and procurement, went up 7% YoY to INR 2,139 Cr, finance costs climbed 66% to INR 100 Cr. Here’s a breakdown of the expenditure:
Employee Benefit Expenses: The company’s spending on its employees decreased 7% to INR 749 Cr from INR 800 Cr in FY24.
Advertising Expenses: This was one of the largest contributors to the total expenditure, growing 25.5% to INR 2,105.3 Cr in FY25 from INR 1,677.4 Cr in the previous fiscal year.
After Sales Service Expenses: The spending under this head increased 8.2% to INR 98.5 Cr from INR 91 Cr in the previous year.
Meanwhile, Flipkart Internet, the B2C marketplace arm of the ecommerce giant, crossed the INR 20,000 Cr revenue mark in FY25. Its operating revenue grew 14.4% YoY to INR 20,493 Cr, while net loss narrowed 37% to INR 1,494 Cr.
The post Myntra’s FY25 Profit Surges 18X To INR 548 Cr appeared first on Inc42 Media.
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