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    Kaya Ltd

    KAYA
    Consumer Services·29 May 2025
    Management Summary

    Kaya Limited reported a 15% collection growth in its India clinics for Q4 FY25, driven by strong performance in services like Anti-Ageing (40% growth) and Body contouring (38% growth). Revenue from operations increased 3% YoY to INR 54.7 crores, though the company posted a standalone loss after tax of INR 7.1 crores. Management outlined plans for a rights issue to retire debt and accelerate expansion, with 7 new clinics already signed for FY26, aiming for net worth positivity and improved profitability.

    Highlights

    5
    • Kaya India Clinics registered a 15% collection growth over Q4 FY24.

    • Services business collection growth was 16% over Q4 FY24, with Anti-Ageing growing 40% and Body category growing 38%.

    • Hair Care services aided by advanced diagnostic tools witnessed a 14% growth.

    • NPS scores continue to trend higher at 89 in Q4 FY25, reflecting great customer experience.

    • Revenue from operations at a standalone level was INR 54.7 crores for Q4 FY25, a growth of 3% over Q4 FY24.

    Concerns

    2
    • Standalone loss after tax and other comprehensive income for Q4 FY25 was negative INR 7.1 crores.

    • Analyst noted a 6% quarter-on-quarter decline in net revenues, though management attributed this to timing of package consumption.

    What Changed2

    vs Q1 FY26

    Guidance items1 → 5 (+4)Risks discussed3 → 0 (-3)
    Key financials

    Metrics

    10

    Periods

    2

    Headline

    9
    • Revenue from Operations
      ₹54.7 Cr
      YoY+3%
    • Standalone Loss After Tax
      ₹-7.1 Cr
    • One-time Gain (Noncurrent Inv.)
      ₹2.4 Cr
    • One-time Gain (IP Rights)
      ₹3 Cr
    • Clinic EBITDA
      25%

    Q4 FY25

    1
    • Marico Product Sales
      ₹2.8 Cr

    Segment breakdown

    Clinic Business
    15% Collection Growth
    Clinic Product Business
    9% Growth
    Services Business
    16% Collection Growth
    Anti-Ageing Services
    40% Growth
    Body Category Services
    38% Growth
    Hair Care Services
    14.0% Growth
    Innovation/New Product Dev.
    6% Contribution to Collections
    New Service Dev.
    6% Contribution to Clinic Collections
    Loyalty Program (Kaya Smiles)
    80% Contribution to Clinic Collections
    List

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    Guidance & targets

    5
    CategoryTargetPriority
    Profitability
    Annual Profitability Improvement
    INR 18 crores
    High
    Balance Sheet
    Net Worth Status
    Positive
    High
    Expansion
    New Clinic Additions
    7 clinics signed
    High
    Marketing
    Marketing Investment
    Higher investments
    Medium
    Brand Refresh
    Clinic Renovation Program
    Continue
    High

    Rights issue completion and debt retirement

    Next quarter
    CurrentRights issue planned for 'not-too-distant future'
    TargetAnnouncement of rights issue completion and debt retirement

    Why it matters

    This is fundamental to the company's financial health, path to profitability, and achieving net worth positivity.

    So I'll answer the first one. As regards to the path to profitability and the current state of the business, we are going to be raising funds in the imminent -- not-too-distant future through rights issue.

    How to verify

    capital_allocation.debt.actions

    0

    Q&A highlights

    8

    “So I'll answer the first one. As regards to the path to profitability and the current state of the business, we are going to be raising funds in the imminent -- not-too-distant future through rights issue.”

    Analyst questioned the company's ability to repay debt given its balance sheet, and management confirmed a rights issue is planned to address this.

    asked by Prateek Giri

    2 min read6 chapters

    Detailed Narrative

    01

    Q4 FY25 Performance Overview

    Kaya Limited reported a 15% collection growth in its India clinics for Q4 FY25, with the product business growing 9%. The services segment saw a 16% collection growth, notably driven by Anti-Ageing (40% growth) and Body contouring (38% growth). Revenue from operations stood at INR 54.7 crores, marking a 3% increase over Q4 FY24, despite the company recording a standalone loss after tax of INR 7.1 crores, which included one-time📎 gains of INR 2.4 crores from noncurrent investment sale and INR 3 crores from IP rights sale.

    02

    Strategic Initiatives and Expansion Plans

    The company is accelerating its expansion strategy, having opened 4 new clinics in FY25 and already signing 7 for FY26, with plans for more locations. A brand refresh program saw 13 clinics renovated and 7 relocated in FY25, and this program is set to continue into FY26. Additionally, Kaya invested in 9 new dermatology machines in Q4 FY25 to enhance service technology and customer experience, aiming for an NPS score of 89.

    03

    Path to Profitability and Fundraising

    Management outlined a clear path to profitability, contingent on a forthcoming rights issue to raise funds in the 'not-too-distant future'. This fundraising is expected to enable the retirement of current loans, which would improve profitability by INR 18 crores annually due to reduced interest costs. The company aims to become net worth positive post-fundraising and leverage its existing head office infrastructure to achieve operating profitability with accelerated growth.

    04

    Revenue Dynamics and Customer Engagement

    While net revenues saw a 6% QoQ decline, management clarified that collections are a lead indicator, and strong March collections (26% growth) are expected to translate into revenue in subsequent months as customers consume pre-purchased packages. The Kaya Smiles loyalty program contributed over 80% of clinic collections in Q4 FY25, demonstrating strong customer retention and engagement through experiential marketing for its Platinum and Gold Elite base.

    05

    Market Competition and Growth Outlook

    The aesthetics market is growing at an estimated 17% annually, attracting significant local competition. Despite Kaya's Q4 growth of 15%, management expressed confidence in its brand strength and top-tier doctors to attract and retain customers. The accelerated expansion plan, combined with like-for-like growth, is expected to position Kaya ahead of the overall market growth in the near future.

    06

    Business Mix and Cost Structure

    The clinic business is primarily service-driven, with services accounting for 85% of collections and products making up 15%. Within services, skin treatments constitute the majority, followed by hair (5-6%) and body (around 7%). Clinic-level EBITDA is reported at 25-26%, with marketing spend at 10-11% of revenue and corporate costs at 18-20%, bringing overall EBITDA to near breakeven.

    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.