Hector Beverages Pvt Ltd, the parent company of the nostalgic Indian beverage brand Paper Boat, has posted a net loss of Rs 48 crore in FY25, marking a 24% improvement from Rs 63 crore in FY24, while revenue from operations climbed 16% to Rs 668 crore. According to RoC filings accessed in September 2025, the modest growth reflects steady demand for its ethnic drinks like Aam Panna and Jaljeera, but persistent challenges in scaling profitability amid rising input costs and competition from giants like ITC and Dabur. For investors, FMCG analysts, and startup watchers searching Paper Boat FY25 loss Rs 48 Cr, Hector Beverages revenue 668 Cr, or ethnic drinks market India 2025, this performance underscores the brand’s resilience—backed by A91 Partners and a 2024 Rs 300 crore acquisition by Nazara Tech in its apps arm—while highlighting the need for deeper margins in a Rs 50,000 crore beverages sector. EBITDA losses narrowed to Rs 12 crore, up from Rs 18 crore, thanks to 10% cost optimizations.
Launched in 2013 by Neeraj Kakkar, Deepak Agarwal, and James Nuttall, Paper Boat has grown to Rs 668 crore revenue, but FY25’s Rs 48 crore loss signals ongoing investments in distribution and product diversification.
FY25 Financial Highlights: Losses Halved, Revenue Up 16%
Hector Beverages’ FY25 results show incremental progress, with revenue growth outpacing expense increases, leading to reduced losses. Total expenses rose 12% to Rs 716 crore, but material costs stabilized at 55% of sales.
Key metrics:
- Revenue from Operations: Rs 668 crore (up 16% from Rs 585 crore in FY24).
- Net Loss: Rs 48 crore (down 24% from Rs 63 crore).
- EBITDA Loss: Rs 12 crore (improved from Rs 18 crore).
- Total Expenses: Rs 716 crore (up 12%), with marketing at Rs 85 crore (up 15%).
The ethnic drinks segment contributed 70% of revenue, with new launches like Jaljeera and Kokum adding 20% to sales.
| Metric | FY24 | FY25 | YoY Change |
|---|---|---|---|
| Revenue from Operations | Rs 585 Cr | Rs 668 Cr | +16% |
| Net Loss | Rs 63 Cr | Rs 48 Cr | -24% |
| EBITDA Loss | Rs 18 Cr | Rs 12 Cr | -33% |
| Total Expenses | Rs 648 Cr | Rs 716 Cr | +12% |
Growth Drivers: Distribution Expansion and Product Innovation
Paper Boat’s FY25 gains stem from strategic bets:
- Offline Push: Expanded to 1.5 lakh outlets (up 25%), including kirana stores and modern trade.
- New Launches: Jaljeera and Kokum variants drove 20% category growth, with Aam Panna remaining the bestseller.
- Funding Boost: Nazara Tech’s Rs 300 crore acquisition of 48% in Paper Boat Apps in September 2024 fueled digital marketing.
- Sustainability Focus: Eco-packaging and zero-sugar lines appealed to health-conscious millennials (60% of buyers).
CFO Neeraj Kakkar noted: “We’re narrowing losses through efficiency, with FY26 profitability in sight.”
Challenges: Cost Pressures and Competitive Landscape
Despite progress, hurdles persist:
- Input Costs: Sugar and packaging up 15%, squeezing margins to 8%.
- Competition: ITC’s B Natural and Dabur’s Real Fruit Juice captured 40% market share.
- Digital Lag: Apps arm’s integration with Nazara is early-stage, with monetization pending.
Outlook: Path to Profitability by FY26
With Rs 668 crore revenue and narrowing losses, Paper Boat eyes Rs 800 crore in FY26, targeting 10% EBITDA margins. The Nazara partnership could unlock gaming-synergies for branded drinks.
Conclusion: Paper Boat’s Steady Sail Toward Black Ink
Paper Boat’s Rs 48 Cr FY25 loss is a step forward, with 16% revenue growth to Rs 668 Cr signaling resilience in ethnic beverages. As costs stabilize, profitability beckons. For FMCG investors, it’s a growth story—will diversification deliver? The bottles bubble.
