Oziva Reports Strong Revenue Growth in FY26

Oziva, a brand focused on nutrition and wellness and owned by Hindustan Unilever, observed notable revenue growth in FY26. This occurred just before Hindustan Unilever acquired the remaining 49% stake in the company for Rs 824 crore. However, this growth was accompanied by a significant increase in losses, expanding 4.4 times over the year, driven chiefly by a substantial rise in advertising costs.

The revenue from operations for Oziva jumped by 80% to Rs 463.4 crore in FY26, compared to Rs 257.8 crore in FY25, as detailed in its financial statements from the Registrar of Companies (RoC). The company earns revenue primarily through the sale of various nutrition and wellness products, which include plant-based supplements, protein, vitamins, and items dedicated to skin and hair health. These categories serve as the exclusive source of Oziva’s operating revenue.

Domestic and International Revenue

Domestic sales emerged as the main source of revenue for Oziva, contributing Rs 454 crore in FY26, reflecting a 77% increase from Rs 257 crore in the prior fiscal year. International sales also showed growth, rising to Rs 8.3 crore during the same period from a mere Rs 8.3 lakh in FY25. Additionally, Oziva generated Rs 4.1 crore from non-operational activities, raising its total income to Rs 467.5 crore in FY26.

Expenditure Insights

In terms of spending, the advertising and promotional budget more than doubled, reaching Rs 246.2 crore in FY26 from Rs 119.8 crore in FY25. This expenditure accounted for over 51% of the company’s total costs. Material costs escalated by 63% to Rs 116 crore in FY26, up from Rs 71 crore in FY25, while employee benefits almost doubled to Rs 45.4 crore. Transportation expenses surged by 57% to Rs 36.9 crore.

Other overhead costs, encompassing legal fees, IT expenses, travel, and miscellaneous items, resulted in an overall increase in Oziva’s expenditures by 81%, reaching Rs 482 crore in FY26 from Rs 266.9 crore in the previous year. The substantial rise in advertising and ancillary costs adversely affected the company’s profitability, with overall losses increasing 4.4 times to Rs 18.5 crore in FY26 from Rs 4.2 crore in FY25. The EBITDA loss also rose to Rs 16.7 crore from Rs 6.3 crore, positioning the EBITDA margin at -3.6%.

On a unit level, Oziva expended Rs 1.04 for every rupee of operating revenue in FY26. By the close of the fiscal year, the company’s cash and bank balances had diminished by 67% to Rs 8.8 crore, while current assets were reported at Rs 106 crore.

Hindustan Unilever’s Acquisition of Oziva

In February this year, Hindustan Unilever completed the acquisition of the remaining 49% stake in Oziva for Rs 824 crore, transforming it into a wholly owned subsidiary. Previously, HUL had acquired a 51% stake in December 2022 for Rs 264.28 crore. This latest transaction valued Oziva at approximately Rs 1,682 crore, significantly more than three times the valuation indicated by HUL’s initial investment.

Competitive Landscape

Oziva operates within a competitive nutrition and wellness market, facing rivals such as HealthKart, Wellbeing Nutrition, MuscleBlaze, and The Whole Truth, alongside larger FMCG companies expanding their health product ranges. For Oziva to maintain its growth trajectory, it is essential to focus on disciplined customer acquisition and foster stronger repeat purchases, rather than relying predominantly on advertising. For Hindustan Unilever, leveraging its distribution capabilities and scale could enhance Oziva’s market reach; however, improving customer economics and nurturing brand loyalty will be crucial as competition intensifies.