Home interiors company HomeLane reported revenue of ₹745 crore in FY26, compared with ₹756 crore in FY25. The company recorded an earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss of ₹137 crore, including ₹19 crore in one-time integration costs.
FY26 marked the first full financial year following HomeLane’s acquisition of DesignCafe. During the year, the company focused on integrating the two businesses and improving margins. It consolidated manufacturing, procurement, technology, and support functions before shifting its attention towards accelerating growth.
“We were very clear that we wanted to use the year to solidify our margins, increase gross margin, and have the base set so that we could get to EBITDA positivity in FY27,” founder and chief executive Srikanth Iyer said.
HomeLane acquired DesignCafe in 2023, bringing both home interiors brands under a single corporate umbrella. Since the acquisition, DesignCafe’s revenue has grown from approximately ₹140 crore in FY24, with the company expecting it to reach ₹270 crore in FY27.
However, DesignCafe’s growth has not yet translated into higher revenue for the combined business. HomeLane’s FY26 revenue remained below the ₹756 crore reported in the previous financial year.
As part of the integration, HomeLane consolidated manufacturing operations and combined back-end functions across both businesses. HomeLane previously operated five factories, while DesignCafe had two. The companies have since moved to a unified manufacturing setup that processes approximately 1.5 million square feet of modular furniture every month.
The focus on profitability began yielding results in the fourth quarter of FY26, when HomeLane achieved positive operating EBITDA. The company reported an operating EBITDA margin of around 5% on quarterly revenue of ₹212 crore.
HomeLane also reduced its direct project costs to 52% of revenue in FY26 from 56.6% in FY25, marking an improvement of 460 basis points. Additionally, the company expanded the use of its Tyrox private-label hardware across both brands, with these products now accounting for more than half of the hardware used by HomeLane.
“We have been able to improve our gross margins significantly. Our direct costs, which were about 56.6 percent of revenue last year, have come down to around 52 percent,” Iyer said.
After dedicating FY26 to integration and cost management, HomeLane is now preparing to resume growth. The company has set a revenue target of ₹1,000 crore for FY27, representing an increase of approximately 34% over FY26.
HomeLane expects the second half of FY27 to outperform the first, supported by new studio openings and growth across its existing locations. The company aims to generate around ₹100 crore in additional revenue from new studios, with the remaining growth expected to come from its existing network.
The company is also expanding through a franchise-owned, franchise-operated studio model. This approach limits HomeLane’s capital investment while enabling it to provide franchise partners with its technology platform, product catalogue and training.
Iyer said HomeLane aims to achieve full-year EBITDA profitability in FY27. According to him, the company needs quarterly revenue of approximately ₹240 crore to ₹250 crore to sustain positive operating performance.
Meanwhile, HomeLane is leveraging artificial intelligence to reduce design costs. Design-related expenses previously accounted for around 7% to 7.5% of revenue, but the company has reduced this share by approximately 1.5 to 2 percentage points, Iyer said.
HomeLane expects to maintain more than two years of cash runway and does not plan to rush into raising additional capital, Iyer said. The company continues to target an initial public offering in FY28.
