boAt Reports 38% Increase in Profit After Tax

boAt, a leading consumer electronics brand, has announced a remarkable 38% year-on-year rise in profit after tax, reaching Rs 84.5 Cr for the fiscal year ending March 2026. This reflects a significant uptick compared to Rs 61.1 Cr recorded in FY25. The profit before tax also saw a notable increase of 53% YoY, climbing to Rs 114.3 Cr, according to the company’s press release.

Despite these positive trends in profit figures, boAt experienced a 4.6% year-on-year drop in revenue from operations, which stood at Rs 2,931 Cr in FY26, down from Rs 3,073 Cr in FY25. This marks the third consecutive year of revenue decline for the brand, with figures decreasing from Rs 3,373 Cr in FY23 to Rs 3,122 Cr in FY24, and then to Rs 3,073 Cr in FY25.

Even with stagnant revenue, the company managed to enhance its return on capital employed (ROCE) to 15.2% in FY26, up from 11.5% the previous year. At the close of the fiscal year, boAt reported approximately Rs 397 Cr in cash reserves, alongside zero bank debt.

Inventory and Expenses Management

According to the company, inventory levels were reduced by around 10%, falling to Rs 294 Cr from Rs 326 Cr, while trade receivables remained relatively unchanged at about Rs 255 Cr. The brand also managed to lower warranty expenditures significantly, cutting costs by approximately 30% to Rs 57.5 Cr in FY26 from Rs 82.6 Cr in FY25.

Segment Financial Performance

At the segment level, boAt’s wearables division became profitable, turning a loss of Rs 54 Cr in FY25 into a profit of Rs 7 Cr in FY26. Additionally, the other segment, which encompasses categories like charging solutions, cables, and gaming, reported an increase in profits to Rs 46 Cr, up from Rs 14 Cr.

Audio products remain the cornerstone of boAt’s business strategy, while the company is also venturing into new product categories. Notably, boAt is exploring international markets and has seen overseas revenue more than double to Rs 45 Cr in FY26, compared to around Rs 20 Cr in the prior fiscal year.

Future Expansion Plans

boAt is set to broaden its horizons with plans to introduce projectors, personal grooming tools, charging solutions, and various other lifestyle tech products under the “boAt 2.0” strategy. In October of last year, the company submitted an updated draft red herring prospectus (UDRHP) to the SEBI, revising its IPO size down to Rs 1,500 crore from the initial Rs 2,000 crore. The IPO comprises a fresh issue of Rs 500 crore and an offer for sale (OFS) of Rs 1,000 crore from existing shareholders and co-founders.