Bose-Funded Noise Revenue Declines 24% to Rs 1,048 Cr in FY25
•February 10, 2026
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Companies Mentioned
Why It Matters
The sharp revenue decline underscores mounting pressure on Indian wearables makers, while Noise’s thin profitability highlights the need for cost discipline and strategic investment to sustain growth and potential IPO ambitions.
Key Takeaways
- •Noise FY25 revenue fell 24% to Rs 1,048 crore.
- •Profit Rs 3.2 cr aided by Rs 47 cr tax gain.
- •Operating expenses fell 25%, mirroring revenue decline.
- •Bose injected $20 M, valuing Noise at $470 M.
- •Wearables slowdown hampers IPO valuations for Noise, boAt.
Pulse Analysis
Noise’s FY25 financials illustrate the tightening margins confronting Indian wearables firms. After a flat FY24, the company’s top line contracted by nearly a quarter, driven by weaker consumer demand and intensified competition on e‑commerce platforms. Cost management measures—cutting material spend, marketing, and employee benefits—helped align the cost base with the reduced scale, but the thin Rs 3.2 crore profit relied heavily on a one‑off deferred tax gain. This pattern signals that organic growth alone may no longer sustain profitability without strategic pivots.
The $20 million capital injection from Bose, which values Noise at $470 million, provides both financial runway and strategic credibility. Bose’s backing aims to leverage Noise’s design expertise and supply chain efficiencies while exploring synergies in audio technology. However, the competitive landscape remains fierce, as rival boAt posted Rs 3,073 crore revenue and a Rs 60 crore profit, positioning itself for a high‑profile IPO. The contrast highlights how scale, brand positioning, and diversified product portfolios can affect valuation expectations in a market where price competition and platform dependence erode margins.
Looking ahead, Noise must navigate a commoditized wearables segment where brand premiums are hard to maintain. Potential pathways include deepening integration with Bose’s audio ecosystem, expanding into higher‑margin health‑tracking services, or pursuing selective offline retail to reduce e‑commerce fee pressures. Investors will scrutinize whether the company can translate cost efficiencies into sustainable earnings growth, a prerequisite for a successful public offering. In a market where growth rates are decelerating, disciplined execution and differentiated product innovation will be critical to restoring investor confidence.
Bose-funded Noise revenue declines 24% to Rs 1,048 Cr in FY25
Following a flat scale in the fiscal year ended March 2024, gadget and wearables brand Noise saw its operating scale decline by 24% in FY25. However, the company’s bottom line turned positive during the period, supported by a deferred tax gain of Rs 47 crore.
Noise’s revenue from operations declined 24% to Rs 1,048 crore in FY5 from Rs 1,384 crore in FY24, its annual financial statements accessed from the Registrar of Companies show (RoC) show.
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Founded in 2014 by Amit and Gaurav Khatri, Noise offers smartwatches, wireless earphones, and speakers via e-comm platforms as well as its own website. It also commands a significant share of the smartwatch market.
Income from the sale of wearables was the sole source of operating revenue for the firm in the last fiscal year. The company earned Rs 17 crore from non operating sources, including interest on current investments, which pushed its total income to Rs 1,066 crore.
For the gadget and wearables brand, the cost of material procurement was the largest cost centre, which accounted for 68% of overall expenditure. This cost stood at Rs 725 crore in FY25 and declined 23% year on year in line with the operating scale.
The firm’s employee benefit expenses fell 12% to Rs 71 crore in FY25, including Rs 6.5 crore towards ESOP costs. Noise also cut marketing and advertising spend by 37% to Rs 180 crore. Warranty, freight, legal, and other overheads took the company’s total expenditure to Rs 1,067 crore in FY25, a 25% decline from Rs 1,417 crore in FY24.
As operations scaled down in FY25, with both revenue and expenses declining by nearly 25%, and aided by a Rs 47 crore deferred tax gain, Noise reported a profit of Rs 3.2 crore. Its ROCE and EBITDA margin stood at 7.31% and 1.67%, respectively. However, the Bose-backed company remained EBITDA positive (Rs 18 crore). On a unit level, the Gurugram-based firm spent Rs 1.02 to earn every rupee in FY25.
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At the end of March 2025, Noise reported total current assets of Rs 467 crore, including Rs 81 crore in cash and bank balances.
In April last year, global audio major Bose doubled down on its investment in Gurugram-based Noise and infused $20 million at a valuation of $470 million. This followed its initial $10 million investment in December 2023. Prior to this, Noise had remained a bootstrapped company.
Noise’s competitor boAt reported operating revenue of Rs 3,073 crore in FY25 and returned to profitability with a net profit of Rs 60 crore during the period. The company is also gearing up for its public listing as it filed its updated DRHP to raise Rs 1,500 crore via initial public offering (IPO).
The challenge of sustaining growth rates in the electronic wearables market is underlined by the sluggish period booth Noise and boAt have experienced in the past year. Brand building has failed to deliver the kind of premiums they hoped for, and competition from new offerings is always snapping at their heels. Outside of a few brands, the categories remain heavily commoditised as far as the mass markets go. Making it all the more worse is the varying degrees of dependence these brands have on ecommerce platforms, which, while they allow them to scale fast, are making it increasingly hard to gain market share. An IPO from the firms looks like a tough challenge in this situation, especially in terms of the valuations they are likely to get vis a vis expectations in say, 2022-23.
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