HomeLane's FY26 Revenue Flat at Rs 738 Cr, Losses Up 23%

HomeLane's revenue from operations stayed essentially flat at Rs 738 crore in FY26, down slightly from Rs 748 crore in FY25, according to its financial statement filed with the Registrar of Companies (RoC). Losses before tax widened 23.4% to Rs 137 crore from Rs 111 crore a year earlier.

The Bengaluru-based company sells end-to-end home interior solutions — from design and contract manufacturing to installation and execution — through its technology-led platform. Interior services were its sole source of operating revenue in FY26.

HomeLane itself contributed Rs 535 crore, more than 72% of the combined revenue. Design Cafe, the acquired entity, added Rs 202 crore. The company earned another Rs 7 crore from interest on deposits, taking total income to Rs 745 crore for the fiscal year ending March 2026.

Where did the money go?

Materials remained the largest cost component at Rs 302.5 crore, or 34.3% of total expenses, down 5.5% from Rs 320 crore in FY25. Employee benefit expenses moved the other way, rising 13% to Rs 270 crore. Advertising and marketing costs climbed 13.1% to Rs 95 crore.

Installation and allied costs fell 26.5% to Rs 61 crore. Other expenses — contract manufacturing charges, legal and professional fees, travel and overheads — rose 9% to Rs 153.5 crore. Total expenses grew 1.7% to Rs 882 crore from Rs 867 crore.

On a unit basis, HomeLane spent Rs 1.2 to earn a rupee in FY26. Its EBITDA margin worsened to -15.3%, with an EBITDA loss of Rs 113 crore. As of March 2026, the firm held total current assets of Rs 209 crore, including cash and bank balances of Rs 86 crore.

What does the CEO say?

In an earlier interaction with Entrackr, HomeLane co-founder and CEO Srikanth Iyer said the company has gradually shifted its focus toward profitable growth rather than pursuing growth at any cost. Despite the full-year loss, HomeLane turned EBITDA-positive in Q4 FY26, pointing to improved operating performance late in the fiscal.

"For the last couple of years, our focus has shifted slowly to profitable growth. We want to grow, but we need to grow profitably," Iyer said.

What comes next?

For the ongoing fiscal, HomeLane is targeting EBITDA profitability of 5-6%, according to Iyer. Over the longer term, the firm aims to scale revenue to around Rs 3,000 crore by FY31 — a goal that would require 30-35% annual growth. It is also evaluating a potential IPO in the coming years.

The company acquired Design Cafe to strengthen its position in India's fragmented home interiors market, where organised players such as Livspace and newer technology-led platforms compete for urban home renovation spending. That integration has yet to translate into meaningful topline growth.

The task ahead is differentiation through execution, predictable delivery and customer experience — not just design tools or wider reach. HomeLane needs to revive growth after the flat FY26, and its proposed IPO will depend on demonstrating consistent revenue growth, stronger margins and a durable business model.