D2C brand sharpens margins, doubles down on GenZ and retail expansion
Revenue set to double as profitability comes into focus
DailyObjects is aiming to double its FY26 revenue to ₹220–₹230 Cr, up from ₹111 Cr in FY25, with a clear eye on profitability.
- Targeting â‚ą400 Cr revenue by FY27
- CEO Pankaj Garg expects EBITDA profitability in FY26
The shift signals a transition from growth-at-all-costs to disciplined scaling.
Growth strong, but losses widened in FY25
The brand posted solid top-line growth, though profitability lagged.
- Operating revenue up 30% to â‚ą84.4 Cr
- Net loss widened 58% to â‚ą16 Cr
This reflects a familiar D2C pattern—spend now, optimise later.
Margins improving on repeat demand and higher AOV
DailyObjects is tightening unit economics through customer behavior shifts.
- 52% repeat customers reducing acquisition costs
- Average order value up 20% to â‚ą2,500
- Monthly order value at ~â‚ą22 Cr
Gross margins stood at 4–5% in FY26, indicating early but improving efficiency.
Direct-to-consumer engine remains core
Owned channels continue to anchor growth.
- 50%+ sales via own website
- Driven by GenZ-focused social media campaigns
Other channels contribute:
- 30% via ecommerce platforms
- 10–12% via corporate gifting
Quick commerce (Blinkit) is being tested—but not positioned as a core growth driver yet.
Offline expansion adds a new growth lever
The startup is scaling physical retail aggressively.
- 9 stores launched in metro cities
- Stores reportedly profitable from month one
Expansion plans:
- 20 new stores across Tier I & II cities
- Cities include Pune, Chennai, Guwahati, Visakhapatnam
Notably, 40–45% demand already comes from Tier II/III markets—offline could unlock this faster.
Distribution partnerships deepen reach
Beyond owned stores, DailyObjects is widening its retail footprint.
- Present in 250 authorised Apple stores
- Plans to add 150–200 more this year
This hybrid model blends premium placement with mass reach.
Product strategy: Depth over breadth
Instead of expanding SKUs, the company is focusing on optimising existing lines.
- Portfolio includes bags, wallets (35% of sales), accessories
- Currently operates with ~50 core SKUs
It’s a disciplined move—scale what works before adding complexity.
Funding and competitive landscape
DailyObjects has raised $12 Mn to date, including a $10 Mn Series B (2024), plus â‚ą25 Cr venture debt recently.
It operates in a competitive D2C space alongside:
- Chumbak (acquired by GOAT Brand Labs)
- Bewakoof (majority stake acquired by Aditya Birla Fashion)
Cost structure reflects growth push
Expenses rose sharply alongside expansion.
- Total expenses up ~30% to â‚ą124.5 Cr
- Key cost heads:
- Inventory: â‚ą51.5 Cr (+21%)
- Marketing: â‚ą26 Cr (+40%)
- Employee costs: â‚ą17.3 Cr (+52%)
The spike in marketing underscores its GenZ acquisition strategy.
The bigger picture
DailyObjects is evolving from a niche accessories brand into a scaled lifestyle player—balancing online strength with offline reach.
The real test: can it sustain growth while hitting profitability in FY26?
TL;DR
DailyObjects aims to double FY26 revenue to â‚ą230 Cr and turn EBITDA profitable, driven by repeat customers, higher AOV, and offline expansion. With strong D2C channels and growing retail presence, the brand is shifting toward sustainable, margin-focused growth.
AI summary
- Targets â‚ą230 Cr revenue in FY26
- EBITDA profitability expected
- 52% repeat customers, AOV â‚ą2,500
- Expanding offline with 20 new stores
- Focus on margins, not SKU expansion
