Evenflow Brands Reports Profitability Improvement in FY26

Evenflow Brands, a house of brands startup, has showcased significant profitability enhancements in FY26, achieving positive EBITDA for the fiscal year. The investor update reviewed by Startup Superb reveals that the company achieved net sales of Rs 53.06 crore in FY26, accompanied by a positive EBITDA of Rs 41.19 lakh, resulting in a margin of 0.8% for the year. However, the firm’s GMV was recorded at Rs 81.5 crore in FY26.

EBITDA Margin Growth

During the year, Evenflow’s EBITDA margin demonstrated notable improvement, reaching 4.5% in Q4 FY26, in contrast to 1.6% in Q3 FY26. The company disclosed that its EBITDA for the March quarter amounted to Rs 73.65 lakh. Co-founder Utsav Agarwal highlighted that the strong performance in Q4 allowed the firm to conclude FY26 positively, stating that they are currently the only profitable player in the sector with no debt.

Factors Contributing to Profitability

The company attributed its improved profitability to enhanced sourcing strategies, reduced marketing expenditures, and operational efficiencies. The cost of goods sold fell to 47.9% of net sales in Q4, down from 50.2% in Q3, while marketing expenses decreased to 20.6%, compared to 25.4% in Q1 FY26. Additionally, the contribution margin after supply chain costs rose to 16% in Q4 from 7.7% in Q1 FY26. Employee costs remained steady at around 8% of net sales throughout the fiscal year.

About Evenflow

Evenflow was established by former Uber and Decathlon executives Utsav Agarwal and Shashank Ranjan. The startup is focused on acquiring and scaling digital-first consumer brands across various marketplaces and quick commerce platforms. They operate brands such as Xtrim, Yogarise, Rusabl, BabyPro, Trendy Homes, Cinagro, and Frenchware, spanning categories that include fitness, home products, kitchenware, gardening, and baby care.

Investment and Future Plans

To date, Evenflow has raised approximately $14 million through multiple funding rounds, with investors including Village Global, Venture Catalysts, 100Unicorns, Equanimity Ventures, as well as angel investors like Kunal Shah and Vijay Shekhar Sharma. Moving forward, the startup aims to accelerate its growth while sustaining its profitability. Agarwal mentioned their intent to leverage growth strategies to double the business within the next 6-8 months while maintaining an EBITDA margin above 2.5%.

Market Position

Evenflow competes with other emerging startups like Mensa Brands (now BRND.Me), GlobalBees, and GOAT Brand Labs within the e-commerce roll-up and house of brands market.