Sugar Cosmetics FY26: Losses Narrow 41% as Revenue Falls 10.7%

Sugar Brands, the parent entity of Sugar Cosmetics, reported revenue from operations of Rs 361 crore in FY26, down 10.7% from Rs 404.4 crore in FY25. Including other income of Rs 2.85 crore, total income stood at Rs 364 crore, compared with Rs 411.7 crore in the previous fiscal. The decline shows the brand is still facing pressure despite signs of financial improvement.

Total expenses fell 18.9% to Rs 443 crore in FY26 from Rs 546.5 crore in FY25, outpacing the drop in revenue. Advertising and sales promotion remained the largest cost item, but the company reduced it by 28.9% to Rs 119.4 crore from Rs 168 crore. Employee benefit expenses fell 21.2% to Rs 58.7 crore, outsourced support services costs declined to Rs 61.4 crore from Rs 76 crore, and finance costs dropped 34.8% to Rs 5.6 crore.

The lower cost base helped Sugar Brands cut its net loss by 41% to Rs 79.3 crore in FY26 from Rs 134.3 crore a year earlier. On a unit level, the company spent Rs 1.23 for every rupee of operating revenue, improving from Rs 1.35 in FY25. EBITDA margin improved to -20.02% from -30.56%, while ROCE stood at -129.51%. Cash and bank balances were Rs 10.30 crore at the end of FY26, compared with Rs 23 crore a year earlier.

Sugar recently raised fresh capital at a valuation reportedly around 80% below its peak, reflecting reset investor expectations after a difficult period. The funding could give the company room to reassess its business, strengthen distribution and improve core operating economics. Competition remains intense: Renee Cosmetics recorded 37% operating revenue growth to Rs 440 crore in FY26 and cut losses by 45%. For Sugar, the key challenge is to regain revenue momentum without rebuilding the earlier cost structure.