Bewakoof, the direct-to-consumer (D2C) fashion and lifestyle brand owned by the Aditya Birla Group, recorded a 40.6% increase in operating revenue to ₹243.1 crore in the financial year ended March 2026. However, the company’s net loss widened 19.4% to ₹87.4 crore from ₹73.2 crore in FY25, highlighting the challenge of translating rapid sales growth into bottom-line profitability. The financial results, reported by Inc42 on October 9, 2026, show that the brand crossed the ₹200 crore revenue milestone even as its total expenses climbed to ₹335.6 crore. Source: Inc42.
The results come at an important stage for Bewakoof, which was acquired by Aditya Birla Fashion and Retail’s digital-first fashion venture TMRW in 2023. Founded in 2012, the brand built its identity around affordable, unconventional clothing and accessories aimed primarily at younger consumers. While revenue growth and a modest improvement in EBITDA performance suggest progress in its operations, rising expenses and a wider net loss indicate that the business still has work to do to establish sustainable profitability. The company is also adjusting to a leadership transition following co-founder Prabhkiran Singh’s departure earlier in 2026.
Bewakoof FY26 Financial Results: Key Numbers
Bewakoof’s FY26 financial performance shows a business expanding its sales base while continuing to incur substantial costs.
| Financial metric | FY26 | FY25 | Year-on-year change |
|---|---|---|---|
| Operating revenue | ₹243.1 crore | ₹173 crore | +40.6% |
| Total income | ₹248.2 crore | Not specified in the report | — |
| Total expenses | ₹335.6 crore | Approximately ₹248 crore | +35.4% |
| Net loss | ₹87.4 crore | ₹73.2 crore | +19.4% |
| EBITDA loss | ₹54.8 crore | ₹59 crore | Loss narrowed 7.2% |
| Other income | ₹5 crore | — | — |
Source: Inc42, based on FY26 financial results. Figures are rounded where appropriate.
Operating revenue increased by ₹70.1 crore during the year, indicating stronger sales of the company’s fashion and lifestyle products. Total expenses, however, rose by ₹87.6 crore, outpacing the absolute increase in operating revenue.
The distinction between net loss and EBITDA loss is important. EBITDA excludes interest, taxes, depreciation and amortisation, while net profit or loss reflects a broader range of expenses. Bewakoof’s narrower EBITDA loss suggests some improvement in operating performance under this measure, even as higher depreciation and other costs contributed to the wider net loss.
Revenue Grows 40.6% as Bewakoof Crosses ₹200 Crore
Bewakoof generated ₹243.1 crore in operating revenue in FY26, compared with ₹173 crore in the previous financial year. This represents growth of approximately 40.6%, a substantial increase for a consumer brand operating in India’s competitive online fashion market.
The company sells products including T-shirts, hoodies, bags, accessories, notebooks and backpacks. Its positioning has historically focused on graphic-led designs, casual clothing and products appealing to millennials and Gen Z consumers.
The revenue increase suggests that the brand has continued to expand its commercial activity despite intense competition from online-first fashion labels, marketplace sellers and established apparel retailers.
Its presence within the Aditya Birla Group’s fashion portfolio may also provide opportunities to leverage a larger retail ecosystem, distribution capabilities and operational resources. However, the reported revenue figures alone do not establish how much growth came from new customers, repeat purchases, higher average order values or expansion into new sales channels.
The next challenge is to ensure that revenue growth generates stronger financial returns rather than requiring a proportionate increase in spending.
Why Did Bewakoof’s Net Loss Increase to ₹87.4 Crore?
Despite stronger revenue, Bewakoof’s net loss increased from ₹73.2 crore in FY25 to ₹87.4 crore in FY26. Total expenses rose 35.4% to ₹335.6 crore, reflecting higher spending across several categories.
The company’s expense breakdown shows increases in inventory-related costs, employee expenses, depreciation and other operating expenditure.
| Expense category | FY26 | FY25 | Change |
|---|---|---|---|
| Cost of materials consumed | ₹70.6 crore | ₹54.5 crore | +29.6% |
| Purchases of stock-in-trade | ₹63.6 crore | ₹38 crore | +67.4% |
| Employee benefit expenses | ₹28.4 crore | ₹25.6 crore | +10.6% |
| Depreciation and amortisation | ₹16.6 crore | ₹6.1 crore | More than doubled |
| Other expenses | ₹146.6 crore | — | +20.9% |
Source: Inc42. Other expenses include items such as marketing, promotional and office expenses.
Purchases of stock-in-trade increased particularly sharply, rising 67.4% to ₹63.6 crore. Cost of materials consumed also increased, reaching ₹70.6 crore. These changes could reflect higher merchandise volumes, product costs or changes in the business’s inventory mix, although the reported figures do not isolate the contribution of each factor.
Depreciation and amortisation rose to ₹16.6 crore from ₹6.1 crore. This increase affects accounting profitability even though depreciation is not itself a current-period cash payment.
Other expenses, which include marketing, promotional and office costs, increased to ₹146.6 crore. Such spending can support brand awareness and customer acquisition, but its effectiveness depends on whether it generates repeat sales and adequate margins.
EBITDA Loss Narrows Despite the Wider Net Loss
One relatively positive indicator in Bewakoof’s FY26 results was its EBITDA performance.
The company’s EBITDA loss narrowed to ₹54.8 crore from ₹59 crore in FY25, an improvement of 7.2%. This suggests that operating performance improved modestly on this measure, even though the company remained loss-making.
The difference between the EBITDA trend and the net-loss trend reflects the impact of expenses that fall outside EBITDA, including depreciation and amortisation. Bewakoof’s depreciation and amortisation expense more than doubled during FY26, placing additional pressure on its bottom line.
The company’s performance therefore presents a mixed picture. Revenue growth was strong, and EBITDA losses declined, but the business did not yet achieve overall profitability.
For a D2C brand, the key question is whether incremental sales generate sufficient contribution after product costs, marketing, logistics, returns and other operating expenses. Higher revenue is valuable, but it must eventually translate into lower losses and stronger cash generation.
Aditya Birla Group’s Acquisition and Bewakoof’s Growth Strategy
Bewakoof became part of the Aditya Birla Group’s digital-first fashion portfolio through TMRW, which acquired a majority stake in the business in a transaction valued at ₹200 crore. The acquisition was completed in February 2023.
TMRW was established to build a portfolio of digital-first fashion and lifestyle brands. Bewakoof’s inclusion gave the group exposure to a consumer segment attracted to casual clothing, expressive designs and online shopping.
The strategic opportunity is to combine the brand’s identity and customer base with the resources of a larger fashion group. These could include supply-chain capabilities, distribution, retail partnerships and shared operating infrastructure.
However, ownership by a large group does not automatically guarantee profitability. The brand still needs to manage inventory carefully, develop products that resonate with customers, control acquisition costs and maintain pricing discipline.
Bewakoof’s FY26 results suggest that its sales momentum has strengthened, but the wider net loss shows that the benefits of scale have not yet translated into a positive bottom line.
Founder Prabhkiran Singh’s Exit Adds a Leadership Transition
FY26 also marked a change in Bewakoof’s leadership. Co-founder Prabhkiran Singh stepped down after approximately 14 years with the company, having announced plans to leave to focus on personal priorities earlier in the year.
Singh founded Bewakoof in 2012 and led its development from a young consumer brand into a recognised D2C fashion business. His departure came nearly three years after the Aditya Birla Group acquired a majority stake through TMRW.
Inc42 reported that Bewakoof had yet to clarify its new leadership structure following Singh’s exit. The transition comes as the brand seeks to build on revenue growth and improve its financial performance.
Leadership continuity can be important during a period of operational change, particularly for consumer brands whose product identity and customer engagement are closely linked to their founding teams. The next phase will require clear accountability for growth, merchandising, marketing and profitability.
The Bigger Picture
Bewakoof’s FY26 results illustrate a wider challenge facing India’s D2C fashion companies: scaling sales is not the same as building a profitable business. The brand achieved 40.6% revenue growth and narrowed its EBITDA loss, but higher total expenses and depreciation pushed its net loss to ₹87.4 crore.
The company’s association with the Aditya Birla Group provides potential advantages in scale and distribution, but sustainable growth will depend on how effectively it manages product costs, marketing investment, inventory and customer retention. Its next phase will be judged not just by revenue milestones but by improvements in operating margins and cash generation.
Looking Ahead
Bewakoof’s performance in FY27 will be important in determining whether the strong sales growth recorded in FY26 can be converted into better financial results. Investors and industry observers will watch revenue growth, inventory costs, marketing efficiency, EBITDA margins and the company’s ability to narrow its net loss. Further clarity on the leadership structure could also help explain how the business will execute its next stage of expansion.
For the broader Indian fashion market, Bewakoof’s results underline the pressures facing digital-first brands competing for price-conscious consumers. Revenue growth can create scale, but the long-term success of the business will depend on disciplined spending, product differentiation and repeat customer demand. Crossing ₹200 crore in operating revenue is a meaningful milestone; achieving sustainable profitability remains the more important test.
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