Gaming
Sugar Cosmetics revenue falls 20 per cent as losses widen
FY25 revenue drops to Rs 404 crore as valuation reportedly plunges to Rs 500-600 crore
MUMBAI: Sugar has turned decidedly sour for Sugar Cosmetics. After years of rapid growth, the beauty brand is facing a sharp financial reversal, with revenue falling, losses nearly doubling and its valuation reportedly losing much of its shine.
Sugar Cosmetics’ operating revenue fell 20 per cent to Rs 404 crore in FY25, down from a peak of Rs 505 crore in FY24. It marks the first significant reversal after several years of expansion, during which revenue climbed from Rs 128 crore in FY21 to Rs 505 crore in FY24.
The slide could deepen in FY26, with operating revenue estimated at between Rs 300 crore and Rs 350 crore. At Rs 300 crore, that would represent a 26 per cent decline from FY25 and leave revenue 41 per cent below the FY24 peak. Even at the upper end of Rs 350 crore, revenue would still be around 13 per cent lower year-on-year and 31 per cent below FY24.
The topline decline has come alongside mounting losses. Sugar Cosmetics reported a net loss of Rs 134 crore in FY25, almost double the Rs 68 crore loss recorded in FY24. The company has remained loss-making throughout the period covered, even as its revenue expanded sharply in the earlier years.
The financial slowdown has also taken a heavy toll on the brand’s valuation. Sugar’s valuation rose from Rs 300 crore in January 2019 to Rs 3,000 crore in May 2022, before easing to Rs 2,900 crore in November 2024.
It is now reportedly being valued at just Rs 500-600 crore, according to Economic Times. At the lower end, that would amount to an estimated 80 per cent fall from its 2022 peak, while the upper end implies a decline of roughly 83 per cent.
The numbers paint a starkly different picture from Sugar’s earlier growth story. A business that more than tripled its revenue between FY21 and FY24 is now staring at another potential year of contraction, while losses have widened and its once Rs 3,000-crore valuation has been sharply reset.
For a brand operating in India’s fast-growing beauty and cosmetics market, the challenge is no longer simply about chasing the next jump in sales. Sugar Cosmetics now has to find a way to turn its growth story from sweet memories back into sustainable numbers.
