Amazon’s quick commerce and grocery retail arm, Amazon Retail, which operates Amazon Now and Amazon Fresh, saw strong growth in revenue during FY26. However, the company’s losses widened sharply as expenses grew much faster than its business.
Amazon Retail’s revenue from operations jumped nearly 50% year-on-year to Rs 3,065 crore in FY26, compared with Rs 2,051 crore in FY25, according to its standalone financial statements sourced from the Registrar of Companies (RoC).
The company’s revenue primarily comes from the sale of goods through Amazon Now and Amazon Fresh, which remain its sole source of operating revenue. It also earned Rs 15 crore as other income, taking its total revenue to Rs 3,080 crore in FY26.
While the company managed to grow its top line, its cost structure remained heavy. The procurement of materials accounted for around 68% of Amazon Retail’s total expenses, which jumped nearly 65% to Rs 2,887 crore in FY26. This left the company with a gross margin of only around 5.08%.
Apart from procurement, the company spent Rs 529 crore on delivery charges during the fiscal year, while platform fees stood at Rs 248 crore. Legal expenses also remained significant at Rs 442 crore during FY26.
Overall, Amazon Retail’s total expenses surged 71.8% to Rs 4,239 crore in FY26 from Rs 2,468 crore in the previous fiscal year. This growth in expenses was considerably faster than its revenue growth.
As a result, the company’s net loss widened more than 3X to Rs 1,158 crore in FY26, compared with Rs 394 crore in FY25.
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