Healthkart Profits Surge: A 3X Increase in FY25

Healthkart has experienced a significant surge in profits, reflecting a 3X increase year-on-year after achieving profitability in FY24. This Gurugram-based nutrition and supplement e-commerce platform saw its profit growth driven by robust sales and a well-managed cost structure.

Strong Revenue Growth

Healthkart’s operating revenue rose by 29%, reaching Rs 1,313 crore in FY25, up from Rs 1,021 crore the previous year, according to its consolidated financial statement as reported by the Registrar of Companies (RoC). The brand owns and manufactures eight nutritional brands, including notable names like MuscleBlaze, The Protein Zone, TrueBasics, HKVitals, bGreen, Nouriza, and Gritzo.

Revenue Breakdown

Product sales accounted for 97% of the total revenue, climbing by 29% to Rs 1,277 crore in FY25. Revenue from services also saw an increase of 16%, totalling Rs 36 crore. Additionally, non-operating revenue rose to Rs 55 crore in the last fiscal year, compared to Rs 48 crore in FY24.

Expense Management

The cost of materials represented the largest portion of the company’s expenditures at 49%. This cost grew by 26%, amounting to Rs 623 crore in FY25, compared to Rs 495 crore in FY24. Advertising expenses experienced a significant rise of 39%, reaching Rs 263 crore, while commission costs increased by 22% to Rs 82 crore. On the other hand, employee benefit costs decreased by 5% to Rs 115 crore.

Cost Growth vs. Revenue Expansion

Healthkart successfully managed to keep its cost growth below revenue increase. Total expenses rose by 23%, amounting to Rs 1,273 crore in FY25, up from Rs 1,032 crore in FY24. For a comprehensive breakdown of expenses, references to various sources can be consulted.

Profitability and Efficiency

The company’s profit soared over 3X to Rs 120 crore in FY25, with its ROCE and EBITDA margin improving to 5.45% and 6.02%, respectively. On a unit basis, Healthkart invested Re 0.97 to generate a rupee of operating revenue in FY25, compared to Rs 1.01 in FY24. As of FY25, current assets were recorded at Rs 971 crore, including Rs 73 crore in cash and bank balances.

Investment Insights

According to various sources on startup data intelligence, Healthkart has secured a total of $382 million in funding to date, with Peak XV Partners, Temasek, and Sofina as its leading investors. The founder and CEO, Sameer Maheshwari, holds a 12% stake in the company.