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Following 50% growth in FY25, Ayurveda wellness brand Kapiva continued its growth momentum in FY26, with its revenue crossing Rs 460 crore. The company also managed to keep its losses largely stable despite higher spending on marketing and other operating costs, while its margins improved after excluding employee stock option (ESOP) expenses. Kapiva’s revenue from operations grew 36.5% year-on-year to Rs 464 crore in FY26 from Rs 340 crore in FY25, according to its annual financial statements sourced from the Registrar of Companies (RoC). Including non-operating income of Rs 10 crore, its total income stood at Rs 474 crore. Founded in 2015, Kapiva offers Ayurvedic nutrition and wellness products across categories such as diabetes management, liver health, hormonal balance, energy and sports nutrition. Sales of its products remained the company’s sole source of operating revenue. Advertising and promotional expenses remained Kapiva’s largest cost component, accounting for nearly 48% of its total expenditure. The expense increased 39.8% to Rs 260 crore in FY26 from Rs 186 crore in the previous fiscal year. The firm’s procurement costs rose 22.6% to Rs 117 crore, while employee benefit expenses stood at Rs 78 crore. Higher spending across these and other heads, including legal, technology and freight, pushed its total expenditure up 31.2% to Rs 547 crore in FY26 from Rs 417 crore in FY25. Despite the increase in expenses, Kapiva’s losses remained broadly stable at Rs 72 crore in FY26, compared with Rs 69 crore a year earlier. Its EBITDA margin, excluding ESOP expenses of Rs 7.85 crore, improved to -14.8% in FY26 from -18.7% in FY25. At the unit level, the company spent Rs 1.18 to earn every rupee of operating revenue. Kapiva has also expanded its product portfolio and distribution network, with investments in new categories such as liver care, cholesterol management and women’s hormonal health, along with infrastructure for offline distribution. “During the last year, Kapiva has made significant investments in creating new categories (Liver Care, Cholesterol, Women’s Hormonal Health) and building infrastructure for offline distribution. These investments are likely to deliver substantial leverage in coming years which helps drive profitability,” a company spokesperson said. The investments are reflected in the company’s category and channel growth. In FY26, its lifestyle diseases category grew 114% year-on-year, followed by daily wellness at 66% and women’s health at 21%. The sports nutrition and energy category grew 5% during the period. According to Kapiva, offline sales led channel growth, increasing 81% year-on-year in FY26. Revenue from marketplaces rose 34%, while its direct-to-consumer (D2C) channel grew 21%. The company’s average order value on its D2C platform stood at around Rs 1,200, with repeat purchases accounting for nearly 55% of its D2C revenue. Kapiva said its current annual recurring revenue (ARR) is around Rs 650-700 crore and that it expects to achieve a low-single-digit positive EBITDA margin by Q4 FY27. The company has raised around $90 million in funding to date, including a $60 million Series D round led by 360 ONE Asset and Vertex Growth. Kapiva competes with wellness brands such as Wellbeing Nutrition, which reported revenue of Rs 244 crore in FY26, along with Innovacare and Gynoveda, which are yet to report FY26 numbers. Kapiva’s recent financial performance points to a business that has expanded rapidly over the past two years. After growing its revenue by 50% in FY25, the company added Rs 124 crore to its operating revenue in FY26. Its revenue has increased by around 93% in two years, from approximately Rs 240 crore in FY24 to Rs 464 crore in FY26. While marketing expenses continue to weigh on profitability, strong growth in offline sales and newer product categories, along with repeat purchases on its D2C platform, could support operating leverage as the company scales. Its target of turning EBITDA-positive by Q4 FY27 will depend on how effectively it converts this growth into improved margins.
document fetched 2026-10-27 02:57