Servify Reports Revenue Decline in FY26
Servify has revealed a slight 4% drop in revenue for FY26, the year ending March 2026, largely due to ongoing losses in its India operations. Nevertheless, the firm managed to make significant strides on the profitability front, reducing its losses by 40% to Rs 51 crore during the fiscal year.
Revenue Overview in FY26
After a 16% increase in FY25, Servify’s revenue from operations fell to Rs 751 crore in FY26 from Rs 781 crore during the prior year, as per its annual consolidated financial statements submitted to the Registrar of Companies (RoC). Established in 2015, Servify offers manufacturer-authorised after-sales services for mobile devices, electronics, and home appliances. The company collaborates with major brands such as Apple, Bose, and HP, and operates across 18,000 service points in over 40 countries. It also handles more than 2.8 lakh claims each year, as indicated on its website.
Key Revenue Sources
The key revenue component for Servify is its white-labelled protection plans, available through mobile applications and online platforms, which accounted for over 97% of its total operating income. However, this segment saw a 4% drop to Rs 730 crore in FY26. Additionally, revenue from the sale of mobile handsets and spare parts decreased by 13% to Rs 20 crore during the same period.
Market Performance
The United States remained Servify’s largest market for the second consecutive year, contributing nearly 60% of its total revenue at Rs 448 crore in FY26, marking a 12% increase from the previous year. In contrast, revenue from India declined by 27% to Rs 242 crore from Rs 330 crore in FY25. Revenue from other regions, including Europe, Canada, the UAE, and Turkey, made up the rest.
Operating Costs
Insurance premiums and repair expenses represented the majority of Servify’s direct operating costs, amounting to Rs 439 crore in FY26, with commission expenses reaching Rs 82 crore. Other costs including courier services, service and upcountry charges, and mobile handset consumption collectively totalled Rs 23 crore. Overall, direct operating costs diminished by 7% to Rs 555 crore during the fiscal year, accounting for 69% of total expenses.
Employee and General Operating Expenses
Employee benefit costs for Servify dropped by 10.6% to Rs 135 crore in FY26 from Rs 151 crore in FY25, which also included Rs 14 crore in employee stock option (ESOP) expenses. Information technology costs, legal and professional fees, depreciation, and amortisation further brought Servify’s total expenses to Rs 807 crore in FY26, an 8% decline from Rs 876 crore in FY25, aligning with the overall revenue drop.
Financial Metrics
The moderation in operational scale corresponded with reduced expenses, enabling Servify to narrow its losses by 40% to Rs 51 crore in FY26, compared to Rs 85 crore in FY25. Servify’s ROCE and EBITDA margin remained negative at 16.67% and 2.47%, respectively, with an EBITDA loss recorded at Rs 19 crore in FY26. For every rupee of operating revenue during the year, the company incurred Rs 1.07 in expenses.
Current Assets and Funding
As of March 2025, Servify had total current assets amounting to Rs 590 crore, alongside a cash and bank balance of Rs 64 crore. Supported by Blume Ventures, Servify has secured over $135 million in total funding, including a $65 million Series D led by Singularity Growth Opportunities Fund. In March 2025, the company raised an additional $7.8 million in its ongoing Series D round from BEENEXT, which values the firm at approximately $700 million.
Competitive Landscape
Servify operates in a competitive environment for device protection and after-sales services, facing competition from companies like Assurant and SquareTrade that offer protection plans and repair services. While the US market bolstered its performance amid declining revenue in India, the 27% drop in domestic revenue underscored the challenges in maintaining growth across different markets. Though lower expenses aided in narrowing losses, Servify’s negative EBITDA margin and expenditure of Rs 1.07 for every rupee in operating revenue indicate a need for improvement in operational efficiency to achieve profitability.