Amazon Retail, which operates Amazon Now and Amazon Fresh services, has reported a significant deterioration in its financial performance for the fiscal year ended March 2026. According to a regulatory filing shared by market intelligence firm Tofler, the company posted a net loss of ₹1,158.3 crore in FY26, representing a substantial increase from the ₹394.2 crore loss recorded in FY25. This marks a 194% increase in losses year-over-year, highlighting the challenges facing the e-commerce retail division.
Despite the widening losses, Amazon Retail demonstrated strong top-line growth during FY26. As reported by Tofler, the company's total sales grew by 49.46% to ₹3,065.1 crore during the reported fiscal year, compared to ₹2,050.8 crore in FY25. This substantial revenue increase of nearly ₹1,014.3 crore indicates robust demand for the company's services, though it was insufficient to offset the rising operational costs.
The primary driver behind the widening losses was a dramatic increase in operational costs, particularly in inventory management. According to the regulatory filing data, cost of goods rose by 64% to ₹2,887.9 crore during FY26, accounting for nearly 94% of the company's total revenue. This cost structure indicates that Amazon Retail's business model remains heavily dependent on inventory management and supply chain efficiency, with any disruptions significantly impacting profitability.
The company's operational efficiency showed a concerning decline during the fiscal year. As reported by Tofler, operating margin reduced to 37.1% in FY26 from 18.6% in FY25, representing a significant deterioration in profitability metrics. This 19.5 percentage point decline in operating margin indicates that despite strong revenue growth, Amazon Retail struggled to maintain cost control and operational efficiency, contributing to the substantial increase in net losses.
