Kerala Ayurveda Limited (KAL) has released its consolidated financial results for FY25, reporting a 22% year-on-year revenue growth to ₹137.2 crore. This performance marks a pivotal year in the company's journey as it makes major investments in digital expansion, healthcare services, global operations, and technology upgrades to lay a strong foundation for the future. Despite a net loss of ₹13.95 crore, KAL remains optimistic, having allocated capital strategically towards growth enablers. The company now targets an ambitious 50% topline growth in FY26, aiming to establish itself as a global leader in the Ayurveda industry.

Strong Growth in FY25 Amid Strategic Investments

Kerala Ayurveda's consolidated revenue rose 22% in FY25 (or 17.4% excluding Ayurvedagram Bali and Om Vedic Singapore). Growth was powered by international markets, especially the US Academy business which grew 52%, and the US Wellness Center which saw a 47% growth. Additionally, Ayurvedagram Bali posted a 71% growth, reflecting robust occupancy rates.

Despite this topline strength, the company reported a consolidated PAT of ₹-13.95 crore, compared to ₹-0.56 crore in FY24. This loss was the result of deliberate long-term investments, including:

• ₹6 crore in Capex for infrastructure

• ₹13.5 crore towards hiring top talent

• ₹6 crore in digital marketing

• ₹6.2 crore provisioning for ESOPs, done for the first time

These investments reflect KAL’s commitment to building a sustainable, growth-oriented organisation.

Segment-Wise Business Performance

E-commerce

The India ecommerce business grew 21% for the full year, with Q4 growth of 37% despite warehousing changes and a temporary marketing pullback. The company launched a new D2C website on Shopify, aiming to enhance user experience and operational efficiency.

The US ecommerce arm faced challenges due to supply disruptions and a shift to third-party logistics, leading to only 7% full-year growth and 10% growth in Q4.

US Business

The US segment was the fastest-growing, clocking 51% growth in FY25. Key drivers included:

• Academy business up 52%

• Wellness Center up 47%

• The clinic underwent a major operational overhaul leading to 73% Q4 growth and 77% sequential growth

This performance solidifies the US as a critical market for KAL’s future.

Health Services

This segment grew 22% year-on-year, with:

• Ayurvedagram Bengaluru achieving 90% occupancy in Q4

• Ayurvedagram Bali’s occupancy up 14%, driving 71% YoY growth

However, the HS Day Clinics underperformed slightly, with a minor decline due to staffing changes, process overhauls, and clinic refurbishments.

Doctor Sales Channel

This business stabilized with 6% growth overall. While the core KAL distribution grew 10% in Q4, the Nutraveda nutraceutical division declined 32% due to production and warehousing issues that have since been resolved.

Future Outlook: FY26 Targets 50% Topline Growth

Kerala Ayurveda aims to double its growth rate to 50% in FY26, supported by a clear strategic roadmap involving both organic expansion and global partnerships.

Digital and E-commerce Expansion

KAL plans a 2x growth in India’s digital business and 3x growth in the US e-commerce segment. The revamped D2C website and increased focus on tech-enabled services are expected to play a major role.

Retreats and Health Services

Ayurvedagram Bengaluru is projected to grow 30%+, with investments in:

• Luxury room additions

• Facility refurbishments

KAL also plans to launch a new retreat property in H2 FY26, expanding its health services footprint.

Premium Product Launch

A new premium range of products is scheduled for launch by Q2 FY26, aimed at capturing a larger share of high-value Ayurveda consumers.

Global Joint Ventures

• Continued integration of Ayurvedagram Bali

• Deeper collaboration with Om Vedic, Singapore

These efforts are expected to contribute ₹20 crore in additional revenues in the upcoming fiscal year.

Clinic Network Expansion

KAL is building a standardized clinic operation model to scale efficiently. It plans to double the number of day clinics by the end of FY26, significantly increasing its outreach and service capabilities.

Operational Discipline and Governance Improvements

KAL has also implemented operational enhancements around:

• Inventory management

• Credit limits

• Bad debts provisioning

• Customer service excellence, particularly at its clinics

These efforts are aligned to improve cash flow discipline and patient satisfaction, critical for long-term retention and reputation.

Conclusion: Positioned for a Global Ayurveda Transformation

Kerala Ayurveda has turned FY25 into a foundation-building year, marked by strong revenue growth, deliberate strategic investments, and a bold vision for international expansion. The company’s digital transformation, clinic and retreat expansion, and global partnerships lay a solid path toward achieving the targeted 50% topline growth in FY26.

KAL’s unique model—blending Ayurveda products, services, and education—is designed to meet growing global interest in holistic wellness. With a focus on talent, marketing, and technology, the company is well-positioned to become a leading Ayurveda brand worldwide.

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