Yes Madam nears Rs 100 Cr revenue in FY25; remains profitable

Home salon services platform Yes Madam reported strong financial performance for the fiscal year ended March 2025. The company doubled its operating revenue during the period to nearly Rs 100 crore while maintaining its profitability.

Noida-based Yes Madam doubled its revenue from operations to Rs 92.5 crore in FY25 from Rs 45.8 crore in FY24, according to its financial statements filed with the Registrar of Companies (RoC).

Founded in 2016, Yes Madam is an at-home services platform that allows users to book beauty, salon, and wellness services such as haircuts, facials, waxing, and massages through its app or website. The company connects customers with trained professionals who deliver these services at home and earns revenue through commissions on each booking.

The sale of products accounted for 54% of the company’s operating revenue, which doubled to Rs 50 crore in FY25. The remaining revenue of Rs 42.5 crore came from the sale of services. This includes commission income, which the company earns as an agent between service professionals and end customers, along with subscription and royalty income.

The company also earned Rs 2 crore from non-operating sources such as penalty charges and interest on fixed deposits, and this brought total income in the previous fiscal year to Rs 94.5 crore.

On the expense side, procurement of products was the largest expense for the firm and accounted for 34% of the total. This expense nearly doubled to Rs 31.4 crore in FY25. Business promotion expenses came next at Rs 27 crore. This cost rose 3.7X from FY24.

Employee benefits expenses also rose 52% year-on-year to Rs 18.14 crore in FY25 from Rs 12 crore in FY24. Other overheads such as IT expenses, cashbacks, professional and consultancy expenses, and rent led the firm to double its overall expenditure to Rs 92.4 crore from Rs 45.5 crore in FY24.

Coming to the bottom line, the Shark Tank India-famed firm remained profitable in the fiscal year ended March 2025 and reported a profit of Rs 1.8 crore. Its ROCE and EBITDA margin stood at 2.29% and 0.57%, respectively.

On a unit basis, the company spent Rs 1 to earn a rupee during the fiscal year. The firm recorded cash and bank balances of Rs 5.5 crore, while its current assets stood at Rs 21.4 crore at the end of FY25.

The fact that YesMadam is going strong while not losing money is by far the most surprising fact about this firm. The high share of product sales in its revenues is the other, as other firms that have been services led have simply not cracked the code on profitability. Even the biggest in the segment, Urban Company has pushed hard on the products side to seek profitability. The question for Yes Madam is, can it continue the streak? It won’t be easy, and the big question really is whether the firm will be able to raise a fresh growth round at a valuation it can accept. It will be ironical if it has to settle for a lower multiple due to changing market conditions despite being the only profitable firm at scale in the segment. So we might just see growth moderate significantly till FY27, as the firm tries to wait out the current volatility in the market.