Industry Odisha Bureau, Oct 31: India’s niche beauty brands post impressive growth as older rivals face a revenue decline.
India’s newer beauty and personal care brands delivered impressive revenue growth in FY26. Some doubled sales, while a few nearly tripled them. Several older direct-to-consumer names, meanwhile, struggled to keep pace. The divergence raises a key question for founders and investors. Is focus beating scale, or are smaller bases flattering the numbers?
Foxtale’s operating revenue rose to ₹383 crore from ₹199 crore, Registrar of Companies filings show. That is growth of roughly 92%. The Z47-backed company sells sunscreen, face wash, moisturiser and masks. Founder Romita Mazumdar said Foxtale avoided frequent launches. Instead, it kept building trust in the products that made the brand. The aim is higher revenue per item, which differs from higher margins.
Innovist, recently acquired by L’Oréal, almost tripled revenue to ₹686 crore. People familiar with its performance said monthly revenue rose 50% between June and September. That reflects a few months, not the full year. Nykaa-owned Dot & Key doubled revenue to ₹799 crore.
Pilgrim grew 69% to ₹690 crore, according to people aware of the matter. Deconstruct posted 32% growth to ₹168 crore. Founder Malini Adapureddy said the company concentrates on sunscreen rather than chasing trends. Such focus can sharpen brand identity and simplify marketing. It also carries risk if one category cools or attracts tougher rivals.
Many of these brands market products as science-backed solutions to specific problems. That message can make choices easier for shoppers, though claims are not clinical proof. Influencer-led social media campaigns help them reach younger buyers. Adapureddy said tier-II and tier-III shoppers now see the same content as metro users. Online shopping has also eased access beyond big cities. Wider reach, however, still needs to convert into repeat purchases.
Older D2C brands tell a different story. Sugar Cosmetics, founded in 2015, offers a broad beauty portfolio. ET earlier reported an estimated FY26 revenue of ₹300–350 crore. That compares with ₹404 crore in FY25 and ₹505 crore in FY24. The estimated revenue decline ranges from roughly 13% to 26% from FY25.
Mamaearth, Wow Skin Science and MCaffeine also face challenges scaling as they mature. Executives and analysts partly blame weak product innovation amid intense competition. That is one explanation, not the full story for each company. Pricing, distribution and marketing choices may also matter.
Ashish Dhir, senior director at market intelligence firm 1Lattice, offered his view. New-age brands, he said, win demand by solving specific consumer problems. Larger mass-market brands, by contrast, may be growing more slowly.
Base effects also play a part. A smaller company can post higher percentage growth with smaller absolute gains. Revenue growth also does not confirm profits, cash flow or market-share gains. Advertising, influencer fees and customer acquisition can weigh heavily on young brands. The real test lies ahead. Lasting success will depend on profitable repeat purchases, not just rapid early sales.
