Financial performance of the well-known Ferns N Petals (FNP) has shown a robust financial performance up to the year ending in March 2025. Being an omnichannel gifting and floral retail giant, the company has been able to grow its operations to a great extent and, at the same time, solidify its bottom line.
As per the financial statements obtained from the Registrar of Companies, FNP experienced an increase in the operating revenue to ₹861.5 crore in FY25. This is a 22% growth compared to the figure of ₹705 crore registered in the last fiscal year, FY24. This expansion underscores how the firm continues to establish itself in the competitive gifting environment despite the difficult economic environment in which it finds itself.
Revenue model and operations
The FNP revenue model is multifaceted as it is based on several retail and service-based channels. The sale of cakes, flowers, and personalized gifting solutions contributes a significant percentage of the profit the firm makes.
These products are distributed through a large network, which involves the FNP official site, third-party e-commerce sites, physical stores owned by the company, and an enormous number of franchises. Besides selling products directly, FNP makes profits via delivery fees, convenience fees, and packing fees. The franchise model also helps generate the top line in terms of single payment onboarding charges as well as monthly royalty payments.
The sale of products still turns out to be the primary engine of expansion that comprises 91% of the total operating revenue. Product sales had increased by 22%, reaching ₹781 crore in FY25, up from ₹641 crore in FY24.
This was even more rapid in the service aspect of the business, which grew by 25% to reach ₹80 crore. Adding some other source of income totalling ₹7.5 crore, FNP’s total income during that fiscal year grew to ₹869 crore as compared to ₹712 crore during the previous year.
FNP also experienced an increase in its spending as it scaled its activities. The overall cost to the company rose by 21% to ₹890 crore in FY25 as compared to the last year. The floral and gifting retailer had the single largest cost of materials, which made up 43% of the total expenditure. Material costs were on the increase by 21.5% to ₹379 crore to match the increment in sales volume.
Advertising and employee benefits were some of the other major expense areas. The expenditures on advertisement, which are essential to ensure brand presence in a saturated market, increased by 17% to ₹184 crore. The employee benefits expenses rose by 18% to ₹146 crore.
Rent expenses also increased to ₹15 crore, and depreciation to ₹16 crore. With these increased costs, the fact that the expenditure is controlled in comparison with the revenue growth indicates that there is a strategic way of handling the enormous size of the company.
Loss reduction and market challenges
The decrease in its net losses was one of the most outstanding achievements FNP had in FY25. The company was able to reduce its losses by 8.3% and reduced them to ₹22 crore compared to the previous year. This bottom line is a positive indicator for the shareholders, but there are some measures of efficiency that still show negative values. Return on Capital Employed (ROCE) of the company was reported as -29.13%, and the EBITDA margin was reported as -1.25%.
At the unit level, the efficiency of the company can be interpreted by the ratio of the spending; during the fiscal year, the FNP managed to spend approximately ₹1.03 in order to receive a rupee of revenue. This implies that the company is almost breaking even, but it still functions with a modest loss per unit of income earned. In terms of liquidity, FNP was in a healthy position; its cash and bank balance amounted to ₹74 crore. Its current assets have been estimated at ₹138 crores, and this has added to the overall asset base of ₹225 crores at the end of FY25.
FNP has a strong capital base, as it was able to raise approximately $27 million in total capital to date. Lighthouse is among the most active investors in the brand. The company is also active in the hospitality and events industry with Udman Hotels and FNP Weddings and Events on top of its core gifting business. The diversification will assist the brand in seizing different elements of the celebratory ecosystem in India.
There are no smooth sails on the way ahead. FNP has to deal with existing competition with well-established players like IGP (Indian Gifts Portal), FlowerAura, Winni, and Archies. The firm is currently competing with an insatiable fast delivery group. These are fast delivery services and are gradually replacing the traditional services provided by FNP, like flowers and cakes, thus posing a danger to its market share.
Conclusion
Ferns N Petals has shown a high revenue growth with consistent stability towards financial stability. The 22% increase in revenue up to ₹861.5 crore and the 8.3% decrease in losses are positive milestones of the gifting giant in FY25. Although the losses seem to be manageable due to the size of the company, the way to a high level of profitability is an incremental challenge.
In a world where the company still has to find its way through the world of competing with the traditional gifting services and new-age quick commerce players, its capability to sustain its growth and to optimize its unit economics will be the major determinant of its future success.
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