boAt FY26: profit up 38% as revenue slips

boAt closed FY26 with net profit of Rs 84.5 Cr against Rs 61.1 Cr in FY25, a rise of 38%, and with operating revenue down to Rs 2,931 Cr from Rs 3,073.3 Cr. Both halves belong in the same sentence. The profit line improved in a year when the top line did not, and a reader who carries away only the profit number has misread the year.

Profit before tax was Rs 114.3 Cr against Rs 74.7 Cr. Return on capital employed was 15.2% in FY26 against 11.5% in FY25. Cash reserves stood at Rs 397 Cr at the end of FY26. International revenue was Rs 45 Cr against Rs 20 Cr.

Where the profit came from shows up in the segments. Wearables posted a segment profit of Rs 7 Cr in FY26 against a segment loss of Rs 54 Cr in FY25. The “other” segment, covering charging solutions, cables and gaming, posted Rs 46 Cr against Rs 14 Cr. Both are segment profit figures, not segment revenue.

Two cost lines moved alongside them. Finance costs fell to Rs 7.9 Cr from Rs 27.9 Cr. Warranty expenses fell to Rs 57.5 Cr from Rs 82.6 Cr.

Gaurav Nayyar, CEO, said: “Our focus now shifts from turnaround to growth. With a stronger balance sheet, tighter operating discipline and a healthy core business, we are getting ready for boAt 2.0.” On the listing, the reported status is that SEBI approval came in September 2025 and an updated DRHP was filed for a Rs 1,500 Cr public issue, with a January 2026 report indicating deferral. That is reported status, not a live timetable.

For anyone selling consumer electronics in India, the line worth staring at is warranty. Rs 57.5 Cr against Rs 82.6 Cr shows warranty expense behaving as a variable, not as a fixed share of sales that you accept at the start of the year and never revisit. If your plan carries warranty and returns provision as a flat percentage, that assumption is the one to reopen before the next buying cycle. A margin-repair year looks like this: fewer rupees of revenue, more rupees kept.