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Atomberg slashes losses by 41% in FY25 after sharp cut in employee costs

Entrackr · 2d ago

Medial

Atomberg slashes losses by 41% in FY25 after sharp cut in employee costs Consumer appliances brand Atomberg reported another decent financial performance in the fiscal year ended March 2025, as it crossed the Rs 1,000 crore income mark and reduced its losses by over 40% due to a sharp cut in employee costs. The Mumbai-based firm’s revenue from operations surged 20% to Rs 958.4 crore in FY25 from Rs 796.9 crore in FY24, according to its consolidated financial statements filed with the Registrar of Companies (RoC). Atomberg’s product portfolio includes energy-efficient brushless direct current (BLDC) and smart fans, mixer grinders, smart locks, and water purifiers. Sale of these products was the sole source of revenue for the company. The company also earned Rs 42.45 crore from interest on current investments, the sale of investments, and other non-operating sources, taking its total income to Rs 1,000.9 crore in FY25. For the consumer appliances brand, the cost of materials was the largest expense, which formed 61% of total costs at Rs 535.2 crore. This cost increased broadly in line with revenue. Notably, the firm’s employee benefits expenses declined sharply by 36% to Rs 158.6 crore in FY25 from Rs 248.3 crore in FY24. Advertising and promotional expenses and warranty claims stood at Rs 104 crore and Rs 53.8 crore, respectively, in FY25, while commissions on sales, freight and logistics, IT expenses, depreciation and amortisation, and other overheads pushed total expenditure to Rs 1,118.3 crore during the period. At the bottom line, the Temasek-backed company narrowed its losses by 41% to Rs 117.4 crore in FY25 from Rs 199 crore in FY24, largely due to a sharp reduction of Rs 89.7 crore in employee costs during the period. Its ROCE and EBITDA margin improved to -25.02% and -6.62% respectively. On a unit level, it spent Rs 1.17 to earn a rupee of operating revenue. As of March 2025, Atomberg’s current assets were Rs 594.5 crore, including cash and bank balances of Rs 27.3 crore. According to startup data intelligence platform TheKredible, Atomberg has raised over $150 million to date, including its most recent $24 million round raised earlier this December, led by Temasek with participation from co-founders Manoj Kumar Meena and Sibabrata Das. Entrackr exclusively reported the funding. Reportedly, Atomberg is eyeing a Rs 2,000 crore ($220 million) initial public offering (IPO) and is expected to list on the Indian stock market during the January–March quarter of FY26. The company has also picked Avendus and IIFL as bankers for the IPO. The IPO plans might be built around optimism around the brand strength and improving financials, with perhaps even profitability a real possibility. Atomberg has clearly done well in a seemingly mature category of fans and appliances, with the whole category seeing a shake-up of sorts as older brands struggle to adapt due to various reasons. Be it its digital approach initially that was backed with clever PR around its BLDC-based push, or the more recent offline push, it has kept a good control on costs. The calibrated approach has impressed investors and consumers alike, and a Rs 3000 crore milestone by 2035 or earlier is not as unlikely as it seems in a category where double-digit growth is an achievement.