IPO-Bound boAt Posts INR 21 Cr Profit In Q1

SUMMARY

boAt reported a net profit of INR 21.4 Cr in Q1 FY26 as against a net loss of INR 31.1 Cr in the same period previous year

The company's operating revenue increased 11% to INR 628.1 Cr from INR 567.2 Cr in Q1 FY25

The consumer electronics manufacturer has filed its updated draft red herring prospectus for an INR 1,500 Cr IPO

After turning profitable in FY25, consumer electronics major boAt continued to be in the black in the first quarter of FY26. The company reported a net profit of INR 21.4 Cr in Q1 FY26 as against a net loss of INR 31.1 Cr in the same period previous year, as per its financial statement shared in its updated draft red herring prospectus (UDRHP).

The company’s operating revenue increased 11% to INR 628.1 Cr from INR 567.2 Cr in Q1 FY25. It earned this revenue through the sale of audio wearables, smart watches, power banks, among other electronics items.

Including other income of INR 10.3 Cr, boAt’s total income for the quarter stood at INR 638.4 Cr.

boAt swung back to the black in FY25, reporting a net profit of INR 60.4 Cr as against a loss of INR 73.7 Cr in the previous fiscal year. The profitability came despite its top line remaining flat at INR 3,073.3 Cr.

The company filed its UDRHP with SEBI today for INR 1,500 Cr IPO. The public issue will comprise a fresh issue of up to INR 500 Cr and an OFS of up to INR 1,000 Cr. It might also consider a pre-IPO round of INR 100 Cr.

While cofounders Aman Gupta and Sameer Mehta plan to sell shares worth up to INR 225 Cr and INR 75 Cr, respectively, South Lake Investment would sell shares of up to INR 500 Cr. Fireside would offload shares worth INR 150 Cr and Qualcomm plans to net INR 50 Cr. Notably, South Lake Investment is also a promoter of boAt.

The company intends to utilise INR 225 Cr from the fresh proceeds to fuel its production, logistics and build its omnichannel selling network. While INR 150 Cr is earmarked for promotional expenses till FY28, the remaining INR 125 Cr would be used for general corporate purposes.

Now, let’s take a deeper look at boAt’s expenses in Q1 FY26.

Breaking Down boAt’s Expenses

The company’s total expenses declined 1% YoY to INR 608.4 Cr.

Purchases Of Stock-In-Trade: The spending under this head surged 63% YoY to INR 576.6 Cr. However, the company gained INR 122.8 Cr from changes in inventory as against spending INR 54.2 Cr on it in Q1 FY25.

Employee Benefit Expenses: boAt spent INR 38.5 Cr on its employees in the quarter, an increase of 18% from INR 32.5 Cr spent in the previous year’s quarter.

Advertising Expenses: The company cut its promotional expenses by 34% YoY to INR 53.2 Cr.