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Post-sales service firm Servify reported a marginal 4% decline in revenue in FY26 (year ended March 2026), dragged by consecutive degrowth in its India business. However, the company made meaningful progress on the bottom line and narrowed losses by 40% to Rs 51 crore during the period. Following a 16% increase in FY25, Servify’s revenue from operations declined to Rs 751 crore in FY26 from Rs 781 crore in the previous fiscal year, according to its annual consolidated financial statements filed with the Registrar of Companies (RoC). Founded in 2015, Servify provides brand-authorised after-sales support for mobile phones, gadgets, electronics, and home appliances. The company has partnerships with major brands, including Apple, Bose, and HP, and operates across 18,000 service locations in more than 40 countries. It also processes over 2.8 lakh claims annually, according to its website. White-labelled protection plans sold through mobile apps and web portals remain Servify’s primary revenue engine, which contributed over 97% of total operating income. The segment declined 4% to Rs 730 crore in FY26. Income from mobile handset and spare parts sales also fell 13% to Rs 20 crore during the period. For the second consecutive year, the US remained Servify’s largest market, which contributed nearly 60% of its total revenue at Rs 448 crore in FY26, a 12% year-on-year increase. In contrast, revenue from India declined 27% to Rs 242 crore from Rs 330 crore in FY25. The remaining revenue came from other markets, including Europe, Canada, the United Arab Emirates, and Turkey. For the post sales firm, insurance premiums and repair expenses formed the bulk of Servify’s direct operating costs at Rs 439 crore in FY26, followed by commission expenses of Rs 82 crore. The remaining costs included courier charges, service and upcountry charges, and mobile handset consumption, which together totalled Rs 23 crore. Overall, direct operating costs declined 7% to Rs 555 crore during the fiscal year and accounted for 69% of total expenses. The firm’s employee benefit expenses dropped 10.6% to Rs 135 crore in FY26 from Rs 151 crore in the previous fiscal year. These expenses included Rs 14 crore in employee stock option (ESOP) costs. Information technology, legal and professional fees, depreciation and amortisation, along with other overheads, took Servify’s total expenses to Rs 807 crore in FY26, an 8% decrease from Rs 876 crore in FY25, in line with the decline in revenue. The moderation in operating scale was accompanied by lower expenses, which helped Servify narrow its losses by 40% to Rs 51 crore in FY26 from Rs 85 crore in FY25. Servify’s ROCE and EBITDA margin remained negative at 16.67% and 2.47%, respectively, while its EBITDA loss stood at Rs 19 crore in FY26. On a unit level, the company spent Rs 1.07 to generate every rupee of operating revenue during the fiscal year. At the end of March 2025, Servify reported total current assets of Rs 590 crore, along with a cash and bank balance of Rs 64 crore. Backed by Blume Ventures, Servify has raised over $135 million to date, including a $65 million Series D led by Singularity Growth Opportunities Fund. In March 2025, it raised an additional $7.8 million in its ongoing Series D from BEENEXT, valuing the company at around $700 million. Servify operates in a competitive device protection and after-sales services market, where players such as Assurant and SquareTrade offer protection plans and repair services. While the US business cushioned the decline in India, the 27% drop in domestic revenue highlighted the challenge of sustaining growth across markets. Lower expenses helped narrow losses, but Servify’s negative EBITDA margin and spending of Rs 1.07 for every rupee of operating revenue showed that the company still needed to improve operating efficiency to reach profitability.
document fetched 2026-10-30 02:57