boAt posts 38% jump in PAT for FY26, goes debt-free

boAt has closed FY26 with a marked improvement in profitability and balance sheet strength, even as revenue growth remained subdued in a soft audio market.

The company, owned by Imagine Marketing Limited, reported revenue of ₹2,931 crore for the year, largely flat over the previous fiscal. Profit After Tax, however, grew 38% to ₹84.5 crore, while Profit Before Tax rose 53% to ₹114.3 crore. Return on Capital Employed improved from 11.5% to 15.2%, a jump of 370 basis points, and the company ended the year with cash reserves of approximately ₹397 crore and zero bank debt.

Announcing the results, boAt co-founder and chief marketing officer Aman Gupta wrote on LinkedIn, "We are pleased to announce our FY26 Results," listing the company's revenue, profitability, capital efficiency and debt position. He flagged topline growth as the one area of concern, noting that with "limited focus beyond Audio" and the audio industry itself not expanding, revenue "remained largely flat" at ₹2,931 crore. "Despite this, the strong overall numbers reflect the strength and resilience of the business we have built," he said, adding that the company is now preparing for its next phase, which he described as "boAt 2.0."

The turnaround was most visible in the Wearables segment, which moved from a segment loss of about ₹54 crore in FY25 to a segment profit of around ₹7 crore in FY26. The company's Other segment, which includes charging solutions, cables and gaming accessories, saw segment profit rise from approximately ₹14 crore to ₹46 crore, pointing to profit pools emerging beyond the core audio business.

boAt also sharply reduced its finance costs, which fell nearly 72% from ₹27.9 crore to ₹7.9 crore, reflecting lower external borrowings through the year. The company repaid close to ₹60 crore in short-term borrowings, bringing loans repayable on demand down to nil by year-end. Inventory was trimmed by around 10%, from ₹326 crore to ₹294 crore, while trade receivables stayed broadly stable at approximately ₹255 crore. Warranty expenses also declined about 30%, from ₹82.6 crore to ₹57.5 crore, which the company attributed to continued work on product quality, sourcing, and channel management.

International revenue more than doubled during the year, rising from roughly ₹20 crore to ₹45 crore, an early sign of traction as boAt looks to expand its footprint outside India.

Speaking on the results, boAt CEO Gaurav Nayyar said, "FY26 was about strengthening the foundations of boAt while navigating a challenging external environment. Despite a broadly stable topline, PAT grew 38%, ROCE improved to 15.2%, and we closed the year with approximately ₹397 crore of cash reserves and zero bank debt." He added that the improvement was visible across the business, with the company consolidating its leadership in audio, turning wearables profitable, and seeing newer categories emerge as meaningful growth and profit pools. "Our focus now shifts from turnaround to growth," Nayyar said, noting that boAt is now looking to build on its audio leadership while expanding into international markets and categories such as projectors, personal grooming and charging solutions. "The ambition is to build boAt into a broader, enduring consumer technology company from India," he said.

Founded in 2015, boAt is India's largest homegrown D2C brand by Gupta's account and the country's leading player in branded personal audio. The company has said 71% of its total units were manufactured locally in FY2025, supported by boAt Labs, its in-house R&D centre with more than 100 engineers. boAt returned to profitability in FY2025, and the FY26 numbers mark a second consecutive year of improved financial performance as the company shifts its narrative from turnaround to growth.