IPO-Bound boAt Turns Profitable In FY25, Posts INR 60 Cr PAT

IPO-bound consumer electronics startup boAt swung back to the black in the fiscal year 2024-25 (FY25), reporting a net profit of INR 60.4 Cr as against a loss of INR 73.7 Cr in the previous fiscal. 

The Aman Gupta-led startup regained profitability despite seeing a marginal decline in its top line. Its operating revenue stood at INR 3,073.3 Cr in FY25, down over 1% from INR 3,117.7 Cr in FY24. 

Its EBITDA for the fiscal zoomed to INR 142 Cr, a near 10X jump from the INR 14 Cr EBITDA reported in the previous fiscal.

In a statement, boAt said that over 70% of its volumes are now manufactured domestically. In the fiscal, the startup scaled its localisation initiatives across PCBs, plastics, and other components, strengthening supply chain resilience.

The company said that, these measures, combined with a reduction in working capital from 71 days in March 24 to 36 days in March 2025, enhanced its financial agility in the fiscal year.

“Our ability to innovate, scale new categories, and adapt quickly to evolving consumer preferences has kept us ahead in a dynamic market. Looking ahead, our focus will remain on our product ecosystem, strengthening the ‘Make in India’ agenda, and delivering superior experiences that define the boAt lifestyle,” boat’s executive director Sameer Mehta said.

Inside boAt’s Revenue Machine

The startup earned INR 3,070.4 Cr from the sale of products, while other operating income stood at INR 2.9 Cr. With a revenue of INR 3,050.5 Cr, India was the biggest market for boAt’s products. However, its international sales surged 44% year-on-year (YoY) to INR 20 Cr in the year under review.

In terms of business segments, boAt’s audio products continued to drive its top line. The startup raked in a revenue of INR 2,586 Cr from the sale of audio products, up 5% from INR 2,459.2 Cr Cr in FY24. boAt’s audio product portfolio includes wireless earphones, speakers, and more.

Meanwhile, its revenue from the wearable category, which includes smartwatches, plunged 40% to INR 330.4 Cr during the year under review from INR 550.3 Cr in FY24.

This marked the second consecutive year of decline in boAt’s wearable segment sales. In FY24, boAt saw a 44% decline in revenue it earned from this segment. 

Notably, boAt started as an audio products company before entering the wearable segment in 2020.

Including other income of INR 24.5 Cr, boAt’s total revenue stood at INR 3,097.8 Cr in FY25 as against INR 3,135.4 Cr in FY24.

Although not part of its revenue, it is pertinent to mention that boAt had an exceptional income of INR 8.6 Cr in FY25 on account of sale of its stake in associate entity Kimirica.

boAt’s subsidiary HOB Ventures Pvt Ltd signed a sale purchase agreement with promoters of beauty and personal care (BPC) brand Kimirica for INR 30 Cr in January 2025.

Later, Kimirica announced raising $15 Mn in August this year. boAt held a 33.3% stake in the BPC startup as of March 31, 2025.  

Breaking Down boAt’s Expenses

The startup managed to turn profitable in FY25 on the back of a 6% decline in its expenses to INR 3,040.4 Cr from INR 3,233.6 Cr in FY24. 

Purchases Of Stock-In-Trade: The startup reduced this expense by 9% YoY to INR 2,069.8 Cr. However, changes in inventory for stock in trade zoomed to INR 105.2 Cr, about 3X from INR 39.2 Cr in the previous fiscal. 

Employee Benefit Expenses: boAt spent INR 134.8 Cr on employee costs in FY25, a marginal increase from INR 130.6 Cr in the previous fiscal

Ad Expenses: The startup spent INR 389.7 Cr on advertising, an increase of 7% from INR 365.7 Cr in FY24.

boAt’s IPO Journey

boAt’s FY25 report card comes in the run up to its public listing. The startup received SEBI’s nod for its confidential draft red herring prospectus (DRHP) yesterday. 

While the exact details of the public issue are not clear because of the pre-filing route taken by boAt, it is reported to be looking to raise around INR 2,000 Cr via its public issue.

Earlier this year, it received its board’s approval to raise up to INR 500 Cr from a fresh issue of shares. 

This is boAt’s second attempt at a public listing. In 2022, it filed a DRHP for INR 2,000 Cr IPO. The IPO was to comprise a fresh issue of INR 900 Cr and an OFS of INR 1,100 Cr. However, it aborted the public listing plans due to market volatility.

Update | The story has been updated to include comments from boAt