Myntra, the Flipkart-owned online fashion and beauty retailer, posted a dramatic turnaround in its financials for FY25. The company’s net profit jumped nearly 18×, climbing to ₹548 crore from just ₹31 crore in FY24. This surge comes alongside an 18% rise in operating revenue, reaching ₹6,043 crore, as Myntra improved its cost controls and sharpened its operations. The Economic Times
Financials & Growth Drivers
- Revenue Growth: Myntra’s operating revenue grew by about 18% year-on-year, moving up to ₹6,043 crore in FY25.
- Profit Surge: Net profit in FY25 was ₹548 crore, compared to ₹31 crore in FY24—increase by 18 times.
- Expense Management: Expenses rose at a slower pace than revenue, indicating better operating leverage and improved cost discipline.
What Fueled the Turnaround
- Higher Revenue Base: Growth in core fashion & beauty categories likely drove sales; increased consumer demand post-pandemic playing a role.
- Operating Efficiency: Better control over expense growth, possibly through optimising logistics, reducing returns cost, managing marketing spend, and employee costs.
- Scale Benefits: As Myntra’s scale increased, fixed costs and overheads became more efficiently utilised per unit of revenue.
Implications & What to Watch
- Investor Confidence: Such a large jump in profitability is likely to boost investor optimism, especially for future growth and potential valuation.
- Competitive Edge: With profit margins improving, Myntra may now have more room to invest in expansion, product categories, or tech.
- Sustainability: Key will be whether Myntra can maintain growth momentum while keeping expense growth in check.
- Pressure from Rivals: Other fashion e-commerce players will be watching, as Myntra’s success raises the bar for profitability in the sector.
Conclusion
Myntra’s performance in FY25 represents a strong story of turnaround: from modest profits to a large leap, driven by revenue growth and operational discipline. Turning ₹31 crore into ₹548 crore in one year is no small feat. If Myntra can sustain this trajectory, it could become a benchmark in profitable fashion retailing in India.
