Startup Originals Team
Mumbai-based consumer electronics brand boAt has achieved its first net profit in two years, recording a ₹61.08 crore gain in fiscal 2024–25. This turnaround comes as the company gears up for an upcoming initial public offering (IPO), signalling a major milestone in its growth journey.
Financial Performance Highlights:
Return to Profitability
- For fiscal year 2025 (FY25), boAt reported a net profit of ₹61.08 crore, a marked improvement from a loss of ₹79.68 crore in FY24.
Revenue Overview
- Total revenue slipped slightly to ₹3,073.3 crore, down from ₹3,117.7 crore in the previous year.
- Including other income, total revenue stood at ₹3,097.8 crore, compared to ₹3,135.4 crore in FY24.
- Core product sales, such as earbuds, speakers, and wireless headphones, totalled ₹3,070.4 crore, while other operating income contributed ₹2.9 crore.
Market Breakdown
- India remained boAt’s primary market, accounting for ₹3,050.5 crore in revenue.
- International sales surged, rising 44% year-on-year to ₹20 crore.
Segment Performance
- The audio products segment (including earbuds, speakers, etc.) generated ₹2,586 crore, registering a 5% increase over the previous year.
- In contrast, wearables continued to struggle, with revenue dropping 40% to ₹330.4 crore, marking a second consecutive annual decline.
Expense Trends & Exceptional Income:
Cost Management
- Expenses fell by 6%, from ₹3,233.6 crore to ₹3,040.4 crore in FY25.
- Purchases of stock-in-trade declined nearly 9% to ₹2,069.8 crore.
- However, advertising expenses rose by 7%, amounting to ₹389.7 crore, and employee costs edged up to ₹134.8 crore.
One-Time Gain
- The company recorded exceptional income of ₹8.6 crore from the sale of its stake in beauty and personal care brand Kimirica, handled by subsidiary HOB Ventures earlier this year.
Funding & Shareholding:
- Incorporated as Imagine Marketing, boAt has raised over $170 million in funding.
- A notable round in 2022 brought in $60 million, led by Warburg Pincus and Malabar Investments.
- Warburg Pincus remains the largest external shareholder, followed by Fireside Ventures and Qualcomm, according to startup platform TheKredible.
IPO Plans & Market Positioning:
- With its revived financial performance, boAt is preparing to launch an IPO aimed at raising approximately ₹2,000 crore, pending SEBI approval.
- If successful, boAt will become the first Indian direct-to-consumer (D2C) electronics brand to go public.
- The brand had previously shelved listing plans in 2022, citing unfavorable market conditions.
