D2C Beauty Growth: Plum Reports Revenue Surge in FY26

The D2C beauty sector is witnessing increased activity from major consumer brands, as established digital-first companies become appealing acquisition targets. In this context, Bengaluru-based Plum announced a 28% revenue rise, exceeding Rs 500 crore in FY26, with profits nearly doubling. Plum’s operational revenue climbed 28% year-on-year to Rs 515 crore in FY26, up from Rs 402 crore in FY25, as per financial records from the Registrar of Companies (RoC).

Plum’s Product Offerings

Founded in 2013, Plum provides skincare, body care, fragrances, hair care, and gifting products through its own website and various third-party e-commerce platforms like Amazon, Nykaa, and Flipkart. Sales from its products remained the only source of operational revenue throughout the year. In addition to core business activities, Plum generated Rs 14.3 crore from interest and mutual fund investment gains, bringing total income to Rs 529.3 crore in FY26.

Expenditure Insights

Plum’s expenses were heavily focused on customer acquisition and production costs in FY26. The company saw advertising and promotional costs jump over 32% year-on-year to Rs 184.4 crore, marking it as the largest expense during the fiscal year. Material costs rose 28% to Rs 184.4 crore, alongside a 12% increase in employee benefit expenses to Rs 47.6 crore. Furthermore, Plum faced additional expenses in storage, commissions, transportation, legal services, and other operational overheads, culminating in a total expenditure of Rs 481 crore in FY26.

Profitability Metrics

Plum’s rapid revenue expansion boosted profitability in FY26, with profits nearly doubling to Rs 49 crore from Rs 25 crore in FY25. For each rupee of operational revenue, the company spent Rs 0.93 during the year. This enhanced profitability was reflected in key metrics, with an EBITDA margin of 8.12% in FY26 and a return on capital employed (ROCE) at 13.2%. By the end of the fiscal year, Plum reported current assets of Rs 305.6 crore, which included Rs 92 crore in cash and bank balances.

Funding Milestones

Plum has successfully raised over $50 million across various funding rounds. The significant fundraising effort occurred in March 2022, when the company obtained $35 million in a Series C round led by A91 Partners, receiving contributions from existing investors like Unilever Ventures and Faering Capital.

Competitive Landscape

Within India’s competitive D2C beauty market, Plum faces off against rivals such as Juicy Chemistry, WOW Skin Science, Mamaearth, and SUGAR Cosmetics, among others. The D2C beauty and wellness landscape in India has witnessed a series of transactions, with larger consumer companies looking to integrate established digital-first brands into their portfolios. Hindustan Unilever Limited acquired a 90.5% stake in Minimalist, valued at Rs 2,955 crore pre-money, while Honasa Consumer took over The Derma Co as part of its growth strategy in the beauty sector. Recently, L’Oréal’s reported acquisition of Innovist further underscores the increasing interest from major strategic entities in India’s D2C beauty arena.