boAt IPO
IPO Price Range: Not Announced Yet
Objectives of IPO
- The total size of the IPO is up to ₹1,500 crore, including a fresh issue of ₹500 crore and an offer for sale (OFS) of ₹1,000 crore. The key selling shareholders participating include promoters like Sameer Mehta (up to ₹75 crore) and Aman Gupta (up to ₹225 crore), and investors such as South Lake Investment Ltd (up to ₹500 crore), Fireside Ventures Investment Fund-I (up to ₹150 crore), and Qualcomm Ventures LLC (up to ₹50 crore).
- Out of the total fresh issue of ₹500 crore, ₹225 crore will be used for funding the working capital requirements of the company. The company's business has substantial working capital requirements. It intends to use this amount over three financial years (ending March 31, 2026, 2027, and 2028). This funding supports the company's operational needs, which include managing total working capital requirements that stood at ₹425.78 crore as of June 30, 2025.
- An amount of ₹150 crore is allocated for funding the brand and marketing expenses towards enhancing the awareness and visibility of its products and brand. This investment is aimed at bolstering brand equity and building awareness. For context on historical spending, the company incurred ₹389.72 crore on advertisement and promotion expenses, 12.68% of revenue from operations in the FY25.
- The remaining funds will be used for the general corporate purposes. This flexible component may cover needs such as capital expenditure, investments in IT infrastructure, ongoing business development initiatives, distribution network expansion, and administrative expenses.
Financial Performance of boAt
The company's financial performance shows a clear shift from losses and declining revenue toward profitability, driven by core product strength and operational efficiency.
Revenue witnessed a marginal decline over the three financial years FY23 to FY25, falling from ₹3,403.2 crore to ₹3,097.8 crore. This negative trend was primarily due to a substantial decline in revenue from the wearables segment, which fell by nearly 40% annually between FY23 and FY25, declining from ₹901.6 crore to ₹330.4 crore.
However, the company showed strong recent growth, with quarterly revenue jumping 11.54% year-over-year (YoY) from ₹572.4 crore in Q1 FY25 to ₹638.4 crore in Q1 FY26. This quarterly increase was fueled by growth in the audio segment (4.15% growth, driven by premium TWS and large audio products) and significant growth in the charging solutions segment.
The most significant financial achievement is the turnaround in profitability. Annual results moved from a substantial loss of ₹129.5 crore in FY23 to a profit of ₹61.1 crore in FY25. Quarterly results reflect this positive momentum, swinging from a loss of ₹31.1 crore in Q1 FY25 to a profit of ₹21.4 crore in Q1 FY26, a massive 168.71% improvement.
This profitability surge drove the EBITDA margin from a loss of 1.77% in FY23 to a gain of 4.64% in FY25. The shift was primarily caused by lower finance costs, which decreased drastically, reflecting a reduction in the overall working capital requirement, a decline in warranty expenses, which fell sharply due to better quality control, and its core segment strength, as the audio segment's adjusted margin peaked at 9.87% in FY24 before settling at 7.27% in FY25.
In line with the reduced capital intensity required for the business, total borrowings fell by a Compound Annual Growth Rate (CAGR) of 32.4%, reducing from ₹1,236.1 crore in FY23 to ₹564.9 crore in FY25. This reduction in debt allowed the company to significantly decrease its interest costs. Total assets also decreased from ₹2,178.5 crore in FY23 to ₹1,618.1 crore in FY25, correlating with the reduced working capital requirements.
Strengths and Risks
Strengths
It maintains a powerful lead in India’s branded personal audio segment, holding 34% in volume terms and 26% in value terms for FY25, ranking as the #1 brand in India in branded personal audio. This dominance has persisted for five consecutive years.
The company has transitioned to profitability, achieving a profit of ₹61.08 crore in FY25, reversing substantial losses incurred in FY24 (loss of ₹79.68 crore.
Its ability to optimize cash utilization is high, with working capital days sharply decreasing from 110 days (FY23) to just 36 days (FY25) on a standalone basis. This efficiency signals highly effective inventory management and swift collection practices.
Operational quality control is showing positive returns, as the warranty expenses dropped from ₹144.53 crore (4.64% of revenue) in FY24 to ₹82.58 crore (2.69% of revenue) in FY25, indicating reduced cost per unit sold due to defects.
Its focus on improving capital efficiency is demonstrated by a positive Return on Net Worth (RoNW) of 14.14% in FY25, a significant recovery from the negative RoNW of -21.18% in FY24.
The company utilizes a successful omni-channel model, with its online channels generating 70.55% (₹2,166.07 crore) of total revenue from operations in FY25.
It has significantly localized production, driven by the 'Make in India' initiative, ensuring supply chain resilience, with 75.83% of total units manufactured domestically in the three months ended June 30, 2025, and 71.10% in FY25, compared to just 39.65% in FY23.
Its internal strong innovation capabilities allow it to respond quickly to trends, evidenced by the launch of over 100 new products in both FY25 and FY24, maintaining relevance in a highly competitive market.
Risks
The business remains heavily dependent on the audio segment, which accounted for 84.23% (₹2,586.04 crore) of revenue from operations in FY25, leaving it vulnerable to shifts in this single category. This dependency increased YoY from 69.93% in FY23; however, in Q1 FY26, it reported at 79.10%.
The wearables revenue has decreased substantially, falling from ₹901.56 crore in FY23 to just ₹330.41 crore in FY25, indicating potential difficulty maintaining growth in the coming years.
It faces substantial outstanding contingent liabilities, predominantly related to indirect tax matters, totaling ₹240.84 crore as of June 30, 2025, which could result in a material financial outflow if they materialize.
Despite achieving annual profitability, the company recorded negative net cash flows used in operating activities of ₹103.1 crore for the three months ended June 30, 2025. This reversal indicates high short-term capital intensity, partly due to inventory build-up for anticipated demand.
The company relies on a concentrated supply base; purchases from its top ten suppliers/contract manufacturers accounted for 45.46% of total stock-in-trade purchases in FY25, risking disruption if supply ceases.
Purchases of stock-in-trade are conducted in foreign currency, exposing it to potential losses from Indian Rupee depreciation. Furthermore, suppliers are concentrated in China, Vietnam, and Hong Kong. With around 90% of the overseas purchases originating from China (including Hong Kong) in Q1 FY26.
The company significantly curtailed capital expenditures, dropping from ₹60.72 crore in FY23 to just ₹6.43 crore in FY25. Research and Development (R&D) expenses also fell during this period, decreasing from ₹52.95 crore to ₹39.47 crore.
How to Apply for boAt IPO on INDmoney
- Download the INDmoney app and complete your KYC.
- Go to INDstocks → IPO, or just search “IPO”.
- Tap on boAt IPO from the list of live IPOs.
- View key details like price band, lot size, and dates.
- Tap Apply Now and choose your number of lots.
- Use INDpay UPI for instant mandate tracking.
- Your funds will be blocked until the share allotment is finalized.
boAt Shareholding Pattern
| Promoters | 88.86% | |
| Name | Role | Stakeholding |
| South Lake Investment Ltd | Promoter | 39.35% |
| Aman Gupta | Promoter | 24.76% |
| Sameer Ashok Mehta | Promoter | 24.75% |
| Public | 11.14% | |
| Name | Role | Stakeholding |
| Fireside Ventures Investment Fund-I (Scheme of Fireside Ventures Investment Trust) | Public | 3.28% |
| Qualcomm Ventures LLC | Public | 2.28% |
| Malabar Select Fund | Public | 1.2% |
| Others | 4.38% |
About boAt
Its target customers are young, digitally native, and trend-conscious consumers, predominantly located in India. While sales are largely domestic, it is currently initiating expansion into select overseas regions, including the Middle East and South Asia (e.g., Nepal and Sri Lanka). The company operates at scale, having cultivated a community of over 2 crore engaged customers ("boAtheads") as of June 30, 2025. It sold over 3.4 crore units in India in FY25. Distribution is handled through an omnichannel approach, relying on online platforms and a substantial physical footprint covering more than 12,000 offline retailers across 25 states and five union territories, supported by 112 distributors.
The company utilizes a swift digital-first model to execute its operations. The value chain begins with innovation and R&D conducted by its internal boAt Labs, which had 101 engineers as of June 30, 2025. It sources customized components and uses a joint venture (Califonix Tech and Manufacturing Private Limited) alongside external contract manufacturers for final assembly. Localization is prioritized, with 75.83% of total units manufactured in India in the three months ended June 30, 2025. Its future strategy involves accelerating growth by increasing premium product offerings (like the Nirvana sub-brand) and further investing in localizing the "Make in India" supply chain.
For more details, visit here: www.boat-lifestyle.com
Frequently Asked Questions of boAt IPO
Can we invest in boAt IPO?
What would be the listing gains on the boAt IPO?
What is 'pre-apply' for boAt IPO?
When is the boAt (Imagine Marketing) IPO coming?
The IPO, planned to aggregate up to ₹1,500 crore, has no confirmed IPO date. The offer consists of a fresh issue of up to ₹500 crore and an offer for sale of up to ₹1,000 crore.
Who are the promoters of boAt (Imagine Marketing)?
The promoters are the two founders, Sameer Ashok Mehta and Aman Gupta, along with the corporate promoter, South Lake Investment Ltd. These promoters collectively hold 88.86% of the pre-Offer equity share capital on a fully diluted basis.
Who are the competitors of boAt (Imagine Marketing)?
It faces severe competition from legacy audio brands, Chinese smartphone Original Equipment Manufacturers (OEMs), emerging Indian digital-first brands, and private labels of online marketplaces. The company’s RHP specifies that no listed companies in India have a similar product mix for financial comparison.
How does boAt (Imagine Marketing) make money?
It generates revenue primarily by selling mass-premium consumer electronics, particularly audio, wearables, and charging solutions. In FY25, the audio category accounted for 84.23% (₹2,586.04 crore) of revenue, while wearables generated 10.76% (₹330.41 crore).