Yes Madam Reports Strong Financial Performance for FY25
Yes Madam, a platform for home salon services, announced impressive financial results for the fiscal year ending March 2025. The company’s operating revenue surged to nearly Rs 100 crore during this period, maintaining profitability.
Revenue Growth
Based in Noida, Yes Madam experienced its revenue from operations grow to Rs 92.5 crore in FY25, a significant increase from Rs 45.8 crore in FY24, as per their financial records submitted to the Registrar of Companies (RoC).
About Yes Madam
Established in 2016, Yes Madam is an innovative at-home services platform that enables consumers to book various beauty, salon, and wellness offerings, including haircuts, facials, waxing, and massages via its app or website. The company effectively connects clients with skilled professionals who provide these services in the comfort of their homes and earns revenue through commissions for each booking.
Revenue Composition
The product sales represented 54% of the company’s operating revenue, which rose to Rs 50 crore in FY25. The remaining income, amounting to Rs 42.5 crore, stemmed from service sales. This includes commission earnings as an intermediary between service providers and clients, as well as subscription and royalty income.
Income from Other Sources
Additionally, the company generated Rs 2 crore from non-operational sources such as penalty fees and interest on fixed deposits, bringing total income for the previous fiscal year to Rs 94.5 crore.
Expense Analysis
On the expenditure side, the procurement of products represented the largest cost for the company, making up 34% of the total expenses which nearly doubled to Rs 31.4 crore in FY25. Following this, business promotion expenses reached Rs 27 crore, increasing 3.7 times compared to FY24.
Employee Benefits and Operational Costs
Employee benefits expenses rose by 52% year-on-year, climbing to Rs 18.14 crore in FY25 from Rs 12 crore in FY24. Other overheads, including IT expenditures, cashbacks, professional and consultancy fees, and rental costs, contributed to an overall rise in expenditures, doubling to Rs 92.4 crore from Rs 45.5 crore in FY24.
Profitability Metrics
Despite the increased expenses, Yes Madam remained profitable for the fiscal year ending March 2025, reporting a profit of Rs 1.8 crore. The company’s return on capital employed (ROCE) and EBITDA margin were recorded at 2.29% and 0.57%, respectively.
Financial Health
The company maintained a balance of Rs 5.5 crore in cash and bank reserves, while its current assets stood at Rs 21.4 crore at the end of FY25.
Insights and Future Considerations
What stands out about Yes Madam is its ability to sustain profitability, which is quite unique in its sector. The significant portion of revenue derived from product sales is also notable, especially as other service-led companies have struggled to achieve similar profitability. Notably, even major players like Urban Company have focused on product sales to improve their financial standing.
Future Growth Challenges
The pressing question for Yes Madam is whether it can maintain this growth trend. The current market conditions present challenges, particularly regarding potential fundraising at acceptable valuations. It would be a paradox if the firm had to accept a lower valuation despite being the only profitable entity of its scale in this industry. It is likely that growth may slow down considerably until FY27 as the company navigates through the prevailing market volatility.
