Despite observing revenue grow by 50% in its previous financial year, Kapiva has maintained strong growth momentum. Kapiva’s operational income witnessed an increase of 36.5% annually, standing at ₹464 crore during FY26 as against ₹340 crore in FY25, based on annual financial statements obtained from the Registrar of Companies. Considering the non-operational income worth ₹10 crore, the total income of the firm stood at ₹474 crore. Established in 2015, Kapiva is a nutrition and wellness brand specializing in a range of health sub-groups, with product sales representing its only revenue stream.
Expenditure breakdown and margin improvements
The company reported a 31.2% jump in total expenditure to ₹547 crore in FY26 from ₹417 crore in FY25, despite substantial top-line growth. The single major cost for the brand was advertising and promotional expenses, which amounted to almost 48% of the total spend.
In FY26, promotional expenses are estimated at ₹260 crore compared with the previous fiscal year’s expense of ₹186 crore, marking an increase of 39.8%. Procurement expenditure rose by 22.6% to ₹117 crore, while employee benefit expenses were at ₹78 crore.
The increase in investment on these heads of operations, combined with costs on legal, technology, and freight, indicated that the business was aggressively scaling. Despite the increased spending on marketing and infrastructure, Kapiva was able to maintain its bottom-line losses at around the same level at ₹72 crore in FY26, as against the earlier fiscal year at ₹69 crore.
After adjusting for employee stock options cost of ₹7.85 crore, the company’s financial margins showed improvement in a significant manner. EBITDA margin, excluding front-end expenditure under ESOP, widened to -14.8% in FY26, from -18.7% previously in FY25. The company incurred an economic unit cost of ₹1.18 per rupee of operating revenue on a unit economic level for the fiscal period.
Current annual recurring revenue and category expansion
A majority of the investments made by Kapiva during the year were directed towards developing new product categories including liver care, cholesterol management and women’s hormonal health and also toward strengthening its distribution infrastructure offline.
The programs resulted in strong category growth, with the segment for lifestyle diseases seeing an 114% year-on-year increase, daily wellness rising by 66% and women’s health increasing by 21%.
From sales channels, offline distribution was the fastest-growing, reporting 81% year-on-year growth, while marketplace community revenue growth rose by 34% and direct-to-consumer channel revenue by 21%. The direct-to-consumer platform’s average order value averaged approximately ₹1200, with almost 55% of direct-to-consumer revenue generated from repeat purchases.
Current annual recurring revenue for Kapiva stands at around ₹650 to ₹700 crore. With a combined investment of approximately $90 million, including a $60 million Series D round led by 360 ONE Asset and Vertex Growth, the wellness brand has introduced a strategic goal to realize a low-single-digit positive EBITDA margin in the fourth quarter of Fiscal 2027.
The commitment to new categories and distribution infrastructure recognizes that investments in these areas will provide the company with a significant level of operating leverage in the years ahead.
Conclusion
In FY26, Kapiva’s performance was a testament to its fast growth in India’s wellness and Ayurveda market, where operating revenue has surpassed ₹460 crore, and the total two-year revenue growth stood near 93%, from around ₹240 crore in FY24. The company has invested heavily in advertising and promotion to offset net losses of ₹72 crore, but steady performance in offline retailing and attractive repeat purchase trends, coupled with diversifying into lifestyle health categories, offer an adequate basis for future operational leverage. An annual recurring revenue topping ₹700 crore and a clear corporate benchmark of achieving EBITDA profitability in Q4 FY27 put Kapiva in a strong spot, with intent to convert the firm’s top-line momentum into a sustainable bottom margin.
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