boAt’s parent company, Imagine Marketing Ltd., has turned profitable in FY2025, reporting a net profit of ₹60.4 crore, a sharp reversal from a loss of ₹73.7 crore in the previous year. This milestone arrives as the company readies its highly anticipated IPO.
Revenue and Cost Trends
- Operating revenue for the year dipped marginally—down 1% to ₹3,073.3 crore from ₹3,117.7 crore in FY2024. However, the decline was offset by stringent cost controls.
- Expenses fell 6% YoY to ₹3,040.4 crore, driven by a 9% reduction in procurement costs, though marketing spend rose 7%. These cost efficiencies helped restore profitability.
Segment Highlights: Audio Shines, Wearables Slide
- Audio products continued to be the primary revenue driver, generating ₹2,586 crore—up 5% from the previous year.
- In contrast, the wearables segment remained under pressure, shrinking 40% YoY to ₹330.4 crore. This indicates ongoing challenges in smart wearables demand.
Broader Context & Strategic Outlook
- This financial performance comes as boAt secures SEBI’s approval for its planned IPO, estimated at a valuation near ₹13,000 crore. The company aims to raise capital via a mix of fresh issue and Offer for Sale (OFS). INDmoney
- boAt is enhancing its omnichannel presence—including ramping up offline footprint in Tier-2 and Tier-3 cities—and expanding into new product categories such as smart rings, charging solutions, and gaming accessories.
Why It Matters
- Profit Turnaround: Shows disciplined cost management and strong brand pull despite pricing pressures and market saturation.
- Audio Strength: The success of its core audio business anchors profitability while wearables need fresh impetus.
- IPO Preparedness: The return to profit boosts investor confidence ahead of its public listing.
