Bewakoof Posts ₹73 Crore Loss in FY25

The D2C fashion brand Bewakoof loss FY25 has drawn attention as the company reported a net loss of approximately ₹73.2 crore for the fiscal year ending March 2025. The result reflects both progress in cost control and persistent challenges in scaling.

Key Financials of FY25

• Total income rose to around ₹174.7 crore, up from ~₹162 crore a year earlier.
• Operating revenue grew about 7.5-8% to ~₹173 crore.
• Net loss: ~₹73.2 crore, down from ~₹103.1 crore in FY24 — a ~29% reduction.
• EBITDA loss improved to around ₹57 crore (margin ~-34%) from ~₹94.4 crore (-59%) in the prior year.
• Total expenses declined ~7% to around ₹247.9 crore from ~₹265.2 crore.

What’s Driving the Improvement?

1. Cost control – Employee benefit expenses dropped ~41% (₹25.64 crore vs ₹43.41 crore)
2. Reduced promotional spend – Advertising & promotional expense was ~₹48.6 crore (slightly down) in FY25.
3. Moderate growth in revenue – Although growth is modest, any uptick helps spread fixed costs better.
4. Improved unit-economics – The company spent ~₹1.43 to earn a rupee of revenue in FY25, improved from ~₹1.65 in FY24.

Key Challenges & Risks

• Scale remains modest: Revenue of ~₹173 crore is still relatively small for a mass fashion brand.
• Return rates and product acceptance: The gross sales vs returns dynamic shows inventory and returns are a challenge. Entrackr
• Competitive pressure: The broader D2C fashion space is crowded and consumer trends evolve fast.
• Profitability still distant: Even though losses narrowed, the negative margins remain large (~-34% EBITDA margin).

What to Watch Going Forward

• Can the brand scale revenue meaningfully beyond ~₹200 crore to achieve operating leverage?
• Will return rates and inventory­costs improve further to help margin expansion?
• How will the parent group Aditya Birla Fashion & Retail Limited (ABFRL) support growth and offline expansion of Bewakoof?
• Monitoring margin improvement: moving from ~-34% EBITDA margin towards less negative territory.
• Whether new channels or international expansion take off, to diversify growth beyond current base.

Conclusion

Bewakoof’s narrowing of its net loss to ~₹73.2 crore in FY25 reflects meaningful progress in cost discipline and modest revenue growth. However, the path to sustained profitability remains challenging given its current scale, competitive environment and margin pressures. For investors and stakeholders, the key will be whether the brand can unlock scale and improved margins in the next few years.