Neeman’s Revenue Jumps 73% to ₹180 Crore in FY26, Losses Narrow 30%

Homegrown footwear brand Neeman’s reported a 73% year-on-year increase in revenue from operations to ₹180 crore in FY26, compared with ₹104 crore in the previous financial year. The Hyderabad-based direct-to-consumer (D2C) company also reduced its net loss by 30.4% to approximately ₹16 crore, indicating an improvement in its financial performance as it expands its presence in India’s footwear market.

According to the company’s annual financial statements reviewed by Entrackr, total expenditure increased 53.1% to approximately ₹199 crore during FY26, growing more slowly than revenue. This helped Neeman’s narrow its losses despite higher spending on materials, marketing and employee costs. The company sells sneakers, loafers, flip-flops, slides and sandals, positioning itself around comfortable footwear and products made using sustainable materials.

Neeman’s FY26 Financial Results

Neeman’s delivered strong revenue growth during FY26, with operating revenue increasing by ₹76 crore compared with the previous financial year.

The company’s total income reached approximately ₹183 crore, including around ₹3 crore from other income, largely generated through net gains on investments. In FY25, total income stood at approximately ₹107 crore.

Financial metric	FY26	FY25	Change
Revenue from operations	₹180 crore	₹104 crore	+73%
Total income	₹183 crore	₹107 crore	+71%
Total expenditure	₹199 crore	Approximately ₹130 crore	+53.1%
Net loss	₹16 crore	₹23 crore	-30.4%
EBITDA margin	-7.21%	—	Improved

The results show that Neeman’s managed to increase sales at a faster pace than its overall expenditure. This helped reduce the gap between revenue and costs, although the company has not yet achieved profitability.

Footwear sales remained its only source of operating revenue during the year, making the performance of its core product business particularly important.

Material Procurement Remains the Biggest Expense

Material procurement was Neeman’s largest expense category in FY26, accounting for approximately 38% of its total expenditure.

The company spent ₹76 crore on materials, compared with ₹48 crore in FY25, representing an increase of 58.3%.

The rise reflects the higher operating scale of the business as it sold more footwear across its product categories.

Other major expenses also increased during the year.

Employee benefit expenses stood at ₹19.43 crore, while advertising and marketing expenditure rose 57.1% to ₹45 crore.

Marketing has become an important investment area for consumer footwear brands competing for visibility in an increasingly crowded market. Companies need to attract new customers, build brand recognition and encourage repeat purchases through digital advertising, campaigns and retail expansion.

Neeman’s also incurred expenses related to technology, legal services, finance, travel and other administrative activities.

Overall expenditure increased to approximately ₹199 crore from around ₹130 crore in FY25. Although costs continued to rise, their slower growth compared with revenue contributed to the reduction in net losses.

Neeman’s Loss Narrows to ₹16 Crore

Neeman’s reduced its net loss to approximately ₹16 crore in FY26 from ₹23 crore in the previous financial year.

The improvement was supported by stronger revenue growth and a slower increase in expenditure.

However, the company remains loss-making.

Its financial ratios indicate that Neeman’s spent approximately ₹1.11 for every rupee of operating revenue during FY26.

The company’s EBITDA margin improved to -7.21%, while its return on capital employed (ROCE) stood at -28.46%.

These figures suggest that the business is moving towards better financial performance but still has work to do before reaching sustainable profitability.

For a growing D2C footwear company, the challenge is to balance investment in marketing, product development and retail distribution with the need to improve operating margins.

Reducing losses is an encouraging development, but consistently generating positive operating cash flow and profits will be important for the next stage of growth.

Neeman’s Expands Its Footwear Portfolio

Founded in 2017 by Taranjeet Singh Chhabra and Amar Preet Singh, Neeman’s initially built its brand around comfortable footwear made using materials such as merino wool and recycled fibres.

The company has since expanded its portfolio beyond its original products.

Its current range includes:

• Sneakers
• Loafers
• Flip-flops
• Slides
• Sandals

Neeman’s follows a D2C model, selling products directly to customers through its online channels and physical retail network.

The brand’s positioning focuses on comfort, product design and materials. It is attempting to build a distinct identity in a market where international brands such as Nike, Adidas and Puma have traditionally held strong positions.

The company is also expanding its offline presence to allow customers to experience products before purchasing them.

According to its founders, Neeman’s had around 40 stores across India by May 2026 and was targeting 100 stores by 2027.

A stronger retail network could help the company reach customers who prefer trying footwear in person, while also supporting its online sales through greater brand visibility.

Homegrown Sneaker Brands Attract Investor Attention

Neeman’s growth comes as India’s homegrown footwear and sneaker market attracts more consumer and investor interest.

Brands such as Comet, Gully Labs and Snitch are building their own identities through different product designs, pricing strategies and customer communities.

Comet, for example, raised ₹100 crore in a Series B funding round led by Verlinvest in September 2026. Gully Labs also initiated its Series A fundraising process during the year.

Neeman’s has raised approximately $17 million in funding to date, with investors including Grand Anicut and Sharrp Ventures.

The funding activity suggests that investors see opportunities in India’s evolving footwear market, particularly among younger consumers who are exploring alternatives to established international brands.

However, competition is increasing. Homegrown brands need to establish a clear product identity and build customer loyalty rather than relying only on discounts and marketing campaigns.

Neeman’s Faces the Challenge of Scaling Profitably

The company’s FY26 results highlight the opportunity as well as the challenges facing D2C footwear businesses.

Higher sales can help brands spread fixed operating costs across a larger revenue base. However, expansion also requires spending on inventory, advertising, retail stores, technology and customer acquisition.

Footwear businesses face additional challenges involving product returns, sizing, inventory management and changing consumer preferences.

Neeman’s will need to ensure that its expanding product portfolio attracts repeat customers while maintaining healthy margins.

Its negative EBITDA margin and ROCE indicate that revenue growth has not yet translated into positive operating profitability.

The company’s ability to improve these indicators will be important as it expands its distribution network.

The Bigger Picture

Neeman’s FY26 performance reflects the growing opportunity for Indian footwear brands as sneaker culture and demand for differentiated products gain traction. Revenue growth of 73% demonstrates that the company has expanded its business significantly, while the 30.4% reduction in losses indicates improving cost discipline. Its broader product portfolio and growing retail presence also provide additional ways to reach consumers.

However, the homegrown footwear market is becoming increasingly competitive. Neeman’s must convert rising brand awareness into repeat purchases while managing material costs, marketing expenditure and retail expansion. The company has made progress in reducing losses, but its negative EBITDA margin shows that sustainable profitability remains an important milestone.

Looking Ahead

Neeman’s next phase will likely focus on expanding its retail footprint, improving product offerings and strengthening its brand presence across India. Its founders have also outlined ambitious growth plans, including a target of ₹350 crore in revenue for FY27 and a longer-term ambition of reaching ₹1,000 crore. These are management targets rather than achieved financial results, and execution will determine how quickly the company can reach them.

The key challenge will be converting rapid revenue growth into consistent profitability. Neeman’s will need to maintain customer demand while controlling marketing, production and operating costs. As competition from both international brands and Indian startups increases, product quality, customer loyalty and efficient distribution will play a major role in determining its long-term position in the footwear market.