The Souled Store FY25: Profit Falls 38% To INR 11 Cr Despite 37% Revenue Growth

SUMMARY

The Souled Store’s net profit declined 38% to INR 11 Cr in FY25 from INR 17.7 Cr, reflecting the absence of a tax credit booked in FY24

Operating revenue jumped 37% to INR 492.4 Cr in FY25 from INR 360.2 Cr in the previous year

Total expenses grew 36% to INR 487.5 Cr during the year under review INR 358.4 Cr in FY24

After turning profitable in FY24, D2C fashion brand The Souled Store extended its profitability streak in FY25. However, its net profit declined 38% to INR 11 Cr in FY25 from INR 17.7 Cr in the previous year, reflecting the absence of a tax credit booked in FY24.

The startup had a tax outgo of INR 1.8 Cr during the year under review as against a tax credit of INR 7.6 Cr in FY24. Its profit before tax rose 26% to INR 12.8 Cr in FY25 from INR 10.1 Cr in FY24.

Meanwhile, operating revenue jumped 37% to INR 492.4 Cr in FY25 from INR 360.2 Cr in the previous year.

Including other income of INR 7.9 Cr, total income stood at INR 500.1 Cr as against INR 368.5 Cr in the previous year.

Founded in 2013 by Vedang Patel, Rohin Samtaney, Aditya Sharma and Harsh Lal, The Souled Store started as a branded merchandise apparel brand and later morphed into its current D2C casual wear brand form.

It also sells products such as backpacks, sneakers, shoes and socks to customers ranging from kids to adults. It has raised more than $29 Mn in funding to date from investors like Elevation Capital, RPSG Capital Ventures, among others.

The Souled Store boasts over 200 licences, including One Piece, Naruto, and Marvel, and operates over 40 offline stores across India.

Earlier this year, it acquired apparel brand Redwolf to consolidate its dominance in the pop culture merchandise space.

Breaking Down The Souled Store’s Expenses

The Souled Store’s total expenses grew 36% to INR 487.5 Cr during the year under review from INR 358.4 Cr in FY24. Here’s the key expense heads:

Employee Benefit Expenses: The D2C fashion brand spent INR 54 Cr under this head, an increase of 38.3% from INR 39.1 Cr in FY24. This indicates that it increased its headcount during the year under review.

Advertising & Promotional Expenses: The spending under the head rose 8% year-on-year to INR 57 Cr in FY25 from INR 52.9 Cr in the previous year.

Transportation Cost: The Souled Store’s transportation expenses increased INR 28.1 Cr from INR 20.5 Cr in FY24.