Bewakoof, the Indian direct-to-consumer fashion and lifestyle company, reported a 19.4% increase in net loss for fiscal year 2026, reaching ₹87.4 crore despite a healthy 40.6% jump in revenue to ₹243.1 crore. The widening losses come after the brand had improved its bottom line the previous year.
- FY26 net loss grows 19.4% to ₹87.4 Cr on ₹243.1 Cr revenue
- Operating expenses rise 35.4%, especially in materials and stock purchases
- Marginal EBITDA loss improvement amid leadership transition
What happened
In fiscal year 2026, Bewakoof experienced a reversal in bottom-line performance with its net loss expanding by 19.4% to ₹87.4 crore compared to ₹73.2 crore in the previous fiscal. This occurred despite robust top-line growth, as the brand’s operating revenue increased 40.6% from ₹173 crore to ₹243.1 crore. Other income of ₹5 crore contributed to a total income of ₹248.2 crore for the year.
The company’s EBITDA loss, a measure of operational profitability before accounting for interests, taxes, depreciation, and amortization, narrowed modestly by 7.2% to ₹54.8 crore from ₹59 crore in FY25. However, total expenses also rose sharply by 35.4% to ₹335.6 crore, driven by increased costs in raw materials, stock purchases, employee benefits, and depreciation.
Why it matters
Bewakoof operates in the highly competitive India D2C fashion market targeting millennials and Gen Z consumers, competing against brands like MyDesignation, Snitch, and The Souled Store. The widening net losses amid revenue growth highlight the challenges in scaling while managing cost structures in this segment.
The company’s increased spending on raw materials and stock-in-trade indicates ongoing efforts to expand product lines and market reach, but this also impacts profitability. With Aditya Birla Fashion and Retail’s majority acquisition in 2023, expectations for operational turnaround and leadership clarity have risen, especially after founder Prabhkiran Singh announced his exit plans earlier in the year.
What to watch next
Market watchers will focus on Bewakoof’s ability to rein in costs while sustaining revenue momentum as it navigates its post-founder leadership transition. Clarity around the new management structure and strategic priorities will be crucial to investor confidence and long-term viability.
Additionally, how Bewakoof leverages investments within its marketing, promotional activities, and product development amid rising depreciation expenses will offer insights into its roadmap toward profitability. Monitoring cash flow trends and cost optimization will be key indicators of progress in upcoming financial results.