Myntra Spends 1.9x Its Ad Revenue as It Bets on Creator Commerce and Microdramas

Myntra is investing heavily to attract shoppers, but its latest financial results show a shift from profit to loss despite growing advertising revenue. According to a report by Entrackr, the Flipkart-owned fashion platform spent ₹2,326.5 crore on advertising in FY26, nearly 1.9 times the ₹1,236.4 crore it earned from advertising services. Its net profit of ₹548.5 crore in FY25 turned into a net loss of ₹579.4 crore in FY26. The company is exploring new ways to attract consumers, from influencer recommendations to shoppable content and short-form entertainment.

Myntra’s Advertising Revenue Grows 35% in FY26

Myntra’s advertising services revenue grew 35.2% year-on-year, from ₹914.5 crore in FY25 to ₹1,236.4 crore in FY26. It accounted for 23.6% of the company’s operating revenue. However, advertising expenditure also increased 10.5% to ₹2,326.5 crore. It was Myntra’s largest expense component, accounting for 41% of total expenses.

The difference between advertising spending and advertising revenue does not directly measure the profitability of its advertising business. While spending supports Myntra’s wider marketing efforts, advertising revenue comes from selling advertising opportunities on its platform. The figures highlight the challenge of attracting shoppers while controlling customer acquisition and marketing costs.

Myntra Expands Creator Commerce to Drive Sales

Myntra is using creator commerce to connect fashion content with shopping. The company plans to triple creator commissions during the festive period, encouraging creators to recommend products and drive purchases. Its creator network includes celebrities, key opinion leaders, influencers, user-generated content creators and shoppers who engage with fashion content. Myntra has said it works with around 200,000 celebrities and key opinion leaders, has over 800,000 creators across its wider network and sees more than seven million shoppers engaging with its Glamstream content.

Through affiliate integrations with platforms such as Meta and YouTube, creators can link products featured in their content. This helps shoppers move from discovering an outfit to exploring or buying it. Smaller creators can also benefit by reaching specific audiences interested in workwear, festive outfits or niche fashion trends. However, the size of Myntra’s creator network does not automatically translate into sales. The strategy’s success will depend on how effectively content converts into purchases.

Myntra Explores Microdramas and Shoppable Content

Myntra is also targeting consumers who discover products while scrolling through social media. Its FWD proposition focuses on trend-led shoppers, while Glamstream combines entertainment, fashion inspiration and shopping. The company has partnered with SW Network on Folks in the Building, a microdrama series comprising four films, each running for two minutes.

The series features familiar internet personalities living in a fictional building, with a Myntra delivery executive appearing as a recurring character. Rather than relying only on conventional advertisements, the brand becomes part of the story. Microdramas allow brands to combine entertainment with marketing, particularly for audiences who regularly watch short-form videos. However, views and engagement do not guarantee sales. Myntra will need to assess whether the format generates purchases and delivers returns on its investment.

India’s Microdrama Market Is Growing

Myntra’s move comes as microdramas gain attention across India’s digital entertainment industry. Lumikai’s State of India Interactive Media Report 2025 estimated that microdramas had accumulated 450 million downloads and 100 million monthly active users. The report projected that the market could reach $4.5 billion by 2030.

These estimates point to the format’s potential, although they do not establish how much of the market Myntra could capture or how profitable its own content initiatives will be. For brands, microdramas offer another way to integrate marketing into entertainment. Their value will ultimately depend on whether they influence shopping decisions and generate measurable business results.

Myntra’s Marketing Strategy Faces a Leadership Change

Myntra’s expanding marketing efforts also come amid a leadership transition. Sunder Balasubramanian, who served as the company’s chief marketing officer for close to four years, has announced his departure. Before joining Myntra, he held marketing leadership roles at Coupang and Disney+ Hotstar and spent nearly 14 years at Colgate-Palmolive. He announced that his final week at Myntra was under way but did not disclose his next move. His departure comes as the company expands its focus across traditional advertising, creator recommendations, affiliate commerce and entertainment. Measuring which channels drive sales, rather than just awareness, will be important as these investments grow.

Can Myntra Turn Its Marketing Spend Into Profits?

Myntra’s FY26 results highlight the challenge of balancing growth with profitability. Advertising revenue increased 35.2%, while advertising expenditure rose 10.5%. Yet the company moved from a ₹548.5 crore profit in FY25 to a ₹579.4 crore loss in FY26. The figures do not establish that advertising alone caused the reversal. However, they raise questions about how effectively Myntra can turn its marketing investments into sustainable growth.

Creator commissions, shoppable content and microdramas offer new ways to connect fashion discovery with purchases. The challenge is to convert consumer attention into transactions while managing costs. As Myntra expands its creator and content ecosystem, the returns from these investments will be crucial to its long-term business performance.