Aditya Birla Group-owned fashion and lifestyle brand Bewakoof saw strong growth in revenue during FY26, but the company continued to remain in losses as its expenses also increased during the year.
The direct-to-consumer (D2C) fashion brand’s operating revenue grew 40.5% to Rs 243 crore in FY26, compared with Rs 173 crore in FY25.
Bewakoof sells a wide range of fashion and lifestyle products, including T-shirts, hoodies, bags, phone covers and other everyday products. Product sales continued to be the main source of revenue for the company during the year.
Material Costs Remain the Biggest Expense
As the business grew, Bewakoof also spent more on making and selling its products.
Material costs remained the company’s biggest expense. The cost of materials increased 45.7% to Rs 134 crore in FY26 from Rs 92 crore in FY25.
Employee expenses also increased, rising 7.7% to Rs 28 crore.
The company spent Rs 62 crore on marketing and promotions during the year, up 26.5% from the previous fiscal. The higher marketing spend shows that Bewakoof continued to invest in attracting new customers and building its brand.
However, transportation and handling costs moved in the opposite direction. These expenses fell 17.1% to Rs 29 crore from Rs 35 crore in FY25.
Bewakoof also saw a sharp rise in depreciation expenses, which nearly tripled to Rs 16.6 crore from Rs 6 crore a year earlier.
Other operating expenses increased 66.1% to Rs 66.4 crore from Rs 40 crore.
Overall, the company’s total expenses rose 35.5% to Rs 336 crore in FY26, compared with Rs 248 crore in FY25.
Losses Continue Despite Revenue Growth
Higher revenue did not yet translate into a lower net loss for Bewakoof.
The company’s net loss increased 19.4% to Rs 87.4 crore in FY26 from Rs 73.2 crore in FY25.
However, some of the company’s operating numbers showed improvement.
Bewakoof’s EBITDA loss narrowed slightly to Rs 59.8 crore from Rs 60.7 crore in FY25. Its EBITDA margin also improved to -24.6% from -35.1%.
The company’s return on capital employed (ROCE) improved as well, moving to -63.4% from -96.6% in the previous year.
Another small improvement came in spending efficiency.
During FY26, Bewakoof spent around Rs 1.38 to generate every Rs 1 of operating revenue. In FY25, it spent Rs 1.43 for every Rs 1 of revenue.
This suggests that while the company is still loss-making, some parts of its business are becoming more efficient.
Balance Sheet Sees Moderate Growth
Bewakoof’s balance sheet also showed some movement during the year.
Total current assets increased to Rs 91.1 crore at the end of FY26 from Rs 84.8 crore a year earlier.
Cash and bank balances also increased slightly, reaching Rs 22 lakh compared with Rs 18 lakh in FY25.
While the increase was limited, the company continued to maintain its operations as it worked on growing its business and improving efficiency.
A Major Leadership Change
FY26 was also an important year for Bewakoof from a leadership point of view.
Prabhkiran Singh, the co-founder of Bewakoof, stepped down from the company in February 2026 after spending around 14 years building the business.
His exit came nearly three years after Aditya Birla Digital Fashion Ventures (ABDFVL) acquired a majority stake in Bewakoof in February 2023 through TMRW, the Aditya Birla Group’s digital-first fashion and lifestyle venture.
The leadership change marks a new phase for the brand as it continues to operate under the Aditya Birla Group.
For Bewakoof, FY26 was a year of strong revenue growth, higher spending and continued losses. The key focus going forward will be whether the company can turn its growing sales and improving operating efficiency into sustainable profitability.
