Consumer electronics startup boAt reported a 38% increase in profit after tax (PAT) to ₹84.5 crore for the financial year ended March 2026 (FY26), up from ₹61.1 crore in FY25, according to inc42.com. Despite this growth, the company’s operating revenue declined nearly 5% to ₹2,931 crore from ₹3,073.3 crore in the previous year.
The profit growth was driven by improvements in product quality, sourcing, channel management, and cost efficiency, boAt said in a statement. Profit before tax (PBT) rose 53% to ₹114.3 crore from ₹74.7 crore in FY25. Finance costs dropped 72% to ₹7.9 crore, helped by the repayment of about ₹60 crore of short-term borrowings, reducing loans repayable on demand to zero. The company ended FY26 with cash reserves of approximately ₹397 crore and no bank debt.
boAt’s wearables segment turned profitable in FY26, posting a segment profit of about ₹7 crore compared with a loss of approximately ₹54 crore in FY25. The company also saw a 30% decline in warranty expenses to ₹57.5 crore. Return on capital employed improved by 370 basis points to 15.2%, indicating better capital efficiency. Inventory declined 10% to ₹294 crore, while trade receivables remained steady at about ₹255 crore.
The company’s financial performance highlights a focus on operational efficiency and debt reduction. boAt’s next financial update will be closely watched to assess whether the profitability trends in wearables and overall cost management continue to strengthen.