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    Kaya Ltd

    KAYA
    Consumer Services·6 Aug 2025
    Management Summary

    Kaya Limited reported a mixed Q1 FY26, with standalone revenue growing 1% to ₹52.8 crores, supported by 7% growth in clinic collections and 6% in services. However, the company posted a standalone loss of ₹14.2 crores, a significant decline from a profit in the prior year which included a one-time gain. Increased employee benefits and consumable costs impacted profitability, while Kaya continues its strategic expansion with two new clinics launched and a focus on customer experience and loyalty programs.

    Highlights

    5

    • Clinic business registered a 7% collection growth over Q1 FY25.

    • Clinic product business witnessed an 11% growth versus Q1 FY25.

    • Services business registered a collection growth of 6% over Q1 FY25.

    • Hair Care and Brightening & Pigmentation maintained healthy growth of 20% and 13% respectively.

    • NPS scores continue to trend higher at 90, reflecting Kaya's great customer experience.

    Concerns

    3

    • Standalone loss after tax and other comprehensive income was negative ₹14.2 crores in Q1 FY26, compared to a profit of ₹6.4 crores in Q1 FY25 (which included a one-time gain of ₹15.8 crores).

    • Employee benefit cost rose to over ₹16.24 lakhs this quarter, driven by increments, productivity incentives, and new clinic contests.

    • Standalone business consumable cost remained high at ₹8.28 lakhs, attributed to a shift in market mix towards higher-consumable categories.

    Key financials

    Single quarter

    05 metrics
    1. 01Revenue from Operations (Standalone)₹52.8 Cr+1%YoY
    2. 02Profit/Loss After Tax (Standalone)₹-14.2 Cr
    3. 03Clinic Business Collection Growth7%+7.0%YoY
    4. 04Clinic Product Business Growth11%+11%YoY
    5. 05Services Business Collection Growth6%+6%YoY

    Capital allocation

    1
    medium confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Guidance & targets

    1
    CategoryTargetPriority
    Capacity
    New clinics opened
    8 clinics
    		Medium

    New clinics operational

    by September/October 2025
    Current2 new clinics in Q1, 1 in Q2, 5 signed
    Target8 clinics operational

    Why it matters

    Clinic expansion is a key driver for revenue growth and market presence, directly impacting future performance.

    So, by September, I think it will be around eight, September, October, it will be around eight clinics.

    How to verify

    guidance_and_targets

    Risks & concerns

    3
    RiskSeverity

    Standalone Net Loss

    Kaya reported a standalone loss of ₹14.2 crores in Q1 FY26, a significant reversal from a profit in the prior year which included a one-time gain. — Management acknowledged

    high

    Rising Operating Costs

    Employee benefit costs increased to over ₹16.24 lakhs and consumable costs remained high at ₹8.28 lakhs, impacting profitability. — Analyst acknowledged

    medium

    Growth Rate Below Industry Average

    Kaya's Q1 FY26 growth of 7-8% lags the industry's projected 13-14% growth over the next five years. — Analyst acknowledged

    medium

    Q&A highlights

    8

    “One is there is a factor of increment as compared to last year. And also, Yes, a bit of productivity has increased. There was some contest which was being run along with the new clinics, which have been part of the employee benefit cost. That is the reason why the employee benefit cost has increased as compared to last year.”

    Clarifies the specific drivers behind the increase in employee benefit costs, which contributed to the quarterly loss.

    asked by Rehan Syed

    2 min read5 chapters

    Detailed Narrative

    01

    Q1 FY26 Financial Performance Overview

    Kaya Limited reported standalone revenue from operations of ₹52.8 crores for Q1 FY26, marking a 1% growth over the corresponding quarter of FY25. Despite this growth, the company recorded a standalone loss after tax and other comprehensive income of negative ₹14.2 crores. This contrasts sharply with a profit of ₹6.4 crores in Q1 FY25, which notably included a one-time📎 gain of ₹15.8 crores from reversal of impairment and sale of intellectual property, indicating an underlying operational loss in the previous year as well.

    02

    Business Segment Performance

    The clinic business demonstrated a 7% collection growth over Q1 FY25. Within this, the clinic product business grew by 11% YoY, primarily driven by categories such as Bath and Body, Nutraceuticals, and Sun Care. The services business also saw a 6% collection growth, with strong contributions from Hair Care (20% growth) and Brightening & Pigmentation (13% growth). Kaya's customer experience remains high, reflected in an NPS score of 90.

    03

    Strategic Initiatives and Expansion

    Kaya continues its expansion strategy, having launched two new clinics in Q1 FY26 in Yelahanka (Bangalore) and Starling Mall (Noida), both achieving 5-star Google ratings. The company invested in 31 new dermatology machines across various categories like Anti-Aging and Hair Reduction to enhance customer experience. Innovation remains a core focus, with new product development contributing 5% and new service development contributing 6% to India clinic collections. The Kaya Smiles loyalty program is highly effective, contributing over 90% of clinic collections.

    04

    Cost Structure and Profitability Challenges

    Profitability was impacted by increased operating costs. Employee benefit costs rose to over ₹16.24 lakhs in Q1 FY26, attributed to increments, productivity incentives, and new clinic-related contests. Consumable costs also remained high at ₹8.28 lakhs, primarily due to a shift in market mix towards higher-consumable services like Body Contouring, Acne Scars, and Anti-Aging. Management acknowledged these cost pressures and is working on improving utilization and customer acquisition to drive profitability.

    05

    Capital Raising and Future Plans

    The company is in the process of completing a preferential allotment, which management expects by the end of August 2025, to bring in a strategic investor. This route was chosen for its simplicity and speed compared to a rights issue. Post the preferential allotment, the board will decide on the future course for a rights issue, which is still on the cards. Kaya aims to leverage better utilization of existing infrastructure and new clinics to improve its growth percentage, targeting approximately 8 clinics to be operational by September/October 2025.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.