Warburg Pincus-backed boAt, the consumer technology brand owned by Imagine Marketing, reported a 38% increase in profit after tax to Rs 84.5 crore (nearly $9 million) in the financial year through March 2026 (FY26), even as revenue from operations declined 4.6% to Rs 2,931 crore.
Profit before tax rose 53% to Rs 114.3 crore from Rs 74.7 crore in FY25. The company also reported an improvement in return on capital employed to 15.2% from 11.5% a year earlier, reflecting stronger capital efficiency.
BoAt ended FY26 with around Rs 397 crore in cash reserves and zero bank debt. Inventory declined by about 10% to Rs 294 crore from Rs 326 crore, while trade receivables remained broadly stable at around Rs 255 crore.
The company also reported that its finance costs fell 72% to Rs 7.9 crore from Rs 27.9 crore after the company repaid around Rs 60 crore of short-term borrowings during the year.
Founded in 2015, boAt started with personal audio devices and has since expanded into wearables, charging solutions and other lifestyle technology categories. The company returned to profitability in FY25 after a period of losses as it sought to improve product quality, sourcing, channel management and costs.
The company said it saw an improvement in the economics of its wearables business, which moved from a segment loss of around Rs 54 crore in FY25 to a segment profit of Rs 7 crore in FY26. Its other segment, which includes charging solutions, cables and gaming, increased segment profit to Rs 46 crore from Rs 14 crore. Audio remains the core business, with boAt continuing to focus on product innovation and premiumisation.
Warburg Pincus invested around $100 million in boAt in 2021. The investment was made through its Asia fund and gave Warburg Pincus a significant minority stake in the company.
BoAt is now looking to build new growth engines under what it calls Boat 2.0, with plans to expand into international markets and adjacent consumer technology categories such as projectors, personal grooming and entertainment, and lifestyle technology products. International revenue more than doubled during FY26 to Rs 45 crore from about Rs 20 crore.
The company said it increasingly designs and manufactures its products in India, with 71% of its total units produced locally in FY25. Its in-house R&D centre, boAt Labs, has more than 100 engineers.
Last October, boAt had filed its updated draft red herring prospectus with the capital markets regulator the Securities and Exchange Board of India (SEBI) after the regulator approved the company's confidential DRHP that August. This was the company's second attempt at an initial public offering after shelving such plans in 2022.