Neeman’s revenue rises 73% as losses narrow 30.4% in FY26

Neeman’s operating revenue rose 73% to Rs 180 crore in FY26, while its loss narrowed 30.4% to Rs 16 crore. Neeman’s annual financial statements, reviewed by Entrackr, showed operating revenue of Rs 104 crore in FY25 and a Rs 23 crore loss.

Entrackr identified Neeman’s among the early homegrown brands tapping a shift in India’s sneaker market. Sneakers have moved beyond footwear, serving as markers of identity and self-expression shaped by basketball and hip-hop since the 1980s.

India’s sneaker market was once dominated by global names such as Nike, Adidas and Puma, leaving homegrown labels with limited room. Entrackr said consumer interest and investment are now rising as Neeman’s, Comet, Gully Labs and Snitch pursue distinct designs, pricing and brand identities.

Founded in 2017 by Taranjeet Singh Chhabra and Amar Preet Singh, Neeman’s operates a direct-to-consumer model. Entrackr described the company’s focus as comfortable footwear made using sustainable materials, with a portfolio spanning sneakers, loafers, flip-flops, slides and sandals.

Footwear accounted for all operating revenue, according to the financial statements. The core business was supplemented by around Rs 3 crore earned largely through net gains on investments, taking total income to Rs 183 crore in FY26 from Rs 107 crore in FY25.

The annual financial statements for Neeman’s put total expenditure at Rs 199 crore in FY26, 53.1% above FY25. The main line items show where that spending went:

• Material procurement cost Rs 76 crore, up 58.3% from Rs 48 crore, and represented 38% of total expenditure.
• Employee benefits cost Rs 19.43 crore.
• Advertising and marketing expense reached Rs 45 crore, up 57.1%.
• Legal, technology, finance, travel and other overheads also added to the bill.

Revenue grew faster than expenditure, helping Neeman’s narrow its loss by 30.4% to Rs 16 crore from Rs 23 crore. That operating leverage remains incomplete: the company spent Rs 1.11 for every rupee of operating revenue, while ROCE improved to -28.46% and EBITDA margin to -7.21%.

Neeman’s has raised around $17 million to date, with investors including Grand Anicut and Sharrp Ventures, according to Entrackr. The category is drawing capital beyond Neeman’s: Comet recently secured a Rs 100 crore Series B round led by Verlinvest, while Gully Labs kicked off a Series A round this year.

What does the growth change for Neeman’s?

For the business, FY26 raises the stakes on execution. Neeman’s now has a Rs 183 crore total-income base, but it spent Rs 1.11 for every rupee of operating revenue and remains EBITDA-negative.

Scale has improved, but the model still has to turn higher sales into viable unit economics. Neeman’s put Rs 76 crore into materials and Rs 45 crore into advertising and marketing, while negative ROCE showed the capital base had not yet earned a positive return.

Entrackr said younger Indian consumers are embracing new designs, collaborations and limited-edition releases as the sneaker category moves beyond its niche roots. That creates an opening for homegrown labels, but the source cautioned that consumer excitement alone will not guarantee a lasting business.

Three operating priorities now determine whether that momentum lasts:

• Convert first-time buyers into repeat customers.
• Maintain product relevance.
• Build viable economics as competition increases.

Those priorities map directly to Neeman’s FY26 accounts. Marketing must produce repeat customers at a scale that can absorb Rs 45 crore of annual spend, while the product range must justify Rs 76 crore of material procurement. The cost structure also needs to fall below operating revenue, rather than remain at Rs 1.11 for every rupee earned.

The next test is whether Neeman’s can convert FY26’s scale into repeat demand and narrower losses as Comet, Gully Labs and Snitch widen the choice set. Another year of double-digit revenue growth would carry more weight if the company also moves EBITDA margin and ROCE back toward zero.