India’s direct-to-consumer haircare and wellness brand Traya delivered strong top-line growth in FY25, even as rising costs pushed the company back into losses after a brief return to profitability last year.
According to its latest financial disclosures, Traya’s revenue from operations climbed 43.2 percent year-on-year to ₹338 crore in FY25, compared with ₹236 crore in the previous fiscal. The growth was primarily driven by sustained demand for its ayurvedic oral and topical hair solutions, supplements, cosmetics, and medicinal products, which together accounted for nearly all of the company’s operating income. Ancillary streams, including doctor consultations, logistics income, and hair transplant services, made up a small portion of total revenue.
While sales momentum remained strong, expenses expanded at a faster pace. Total expenditure rose 60 percent year-on-year to ₹366 crore, up from ₹229 crore in FY24. Sales and marketing spend increased 40 percent to ₹138 crore as the company continued to invest heavily in customer acquisition and brand visibility. Employee-related costs more than doubled to ₹83 crore, reflecting aggressive hiring and expansion across functions.
Input costs also remained elevated. Traya reported material consumption expenses of ₹83 crore, alongside higher freight, rental, legal, and other operational costs that added pressure to margins. The widening gap between income and expenditure resulted in a net loss of ₹23 crore for FY25, reversing the ₹8.6 crore profit posted a year earlier.
Key profitability metrics weakened during the period. Return on capital employed slipped into negative territory at minus 20.47 percent, while EBITDA margin stood at minus 6.18 percent. On a unit economics basis, the company spent ₹1.08 to generate every rupee of operating revenue.
The broader haircare and hair loss treatment market continues to grow, driven by rising lifestyle stress, pollution, and health awareness. However, increasing competition from both non-invasive solutions and surgical hair transplant services is intensifying pressure on pricing, margins, and long-term differentiation for D2C brands operating in the space.
