Deconstruct revenue grows 25X in three years to Rs 165 Cr in FY26

D2C skincare brand Deconstruct grew its operating revenue 25-fold in three years to Rs 165 crore in FY26, with revenue growing 30% year-on-year. The firm continued to expand its business while keeping losses marginal, reporting a net loss of Rs 5.4 crore in the last fiscal year.

The Bengaluru-based startup’s revenue from operations grew 30% YoY to Rs 165 crore in FY26, compared to Rs 127 crore in FY25, according to its financial statements sourced from the Registrar of Companies (RoC).

Founded by Malini Adapureddy, Deconstruct offers products for different skin types, including sensitive ones. Its portfolio spans face, body, lip and hair care products for men and women.

Deconstruct’s growth has also been accompanied by higher spending on marketing and ops as it scales. Advertising and promotional expenses rose 72.5% to Rs 69 crore in FY26, accounting for 40% of its overall costs.

Its procurement costs increased 39.3% to Rs 39 crore during the fiscal year ended March 2026, in line with the expansion of its business. Transportation, freight, legal and other overheads also added to the burn.

Deconstruct’s total expenses grew 48.7% to Rs 174 crore in FY26 from Rs 117 crore in FY25, outpacing its revenue growth during the year.

As a result, the company reported a net loss of Rs 5.4 crore in FY26, compared to a net profit of Rs 10 crore in FY25. Its EBITDA margin stood at -5.61%, while return on capital employed (ROCE) was -13.81%. At the operating level, Deconstruct spent around Rs 1.05 to earn every rupee of operating revenue in FY26.

Deconstruct has raised funding from investors including Kalaari Capital, DSG Consumer Partners, V3 Ventures and L’Oréal’s venture capital fund BOLD to support its growth and expansion.

Deconstruct competes with skincare brands such as Minimalist, The Derma Co, Foxtale and Dot & Key in India’s D2C skincare market.

The firm’s numbers point to a business that has scaled revenue while keeping its losses limited, despite a growth in marketing and operating expenses. However, expenses growing faster than revenue will remain a key metric to watch as the company expands. 

With advertising accounting for a significant share of its costs, the brand’s ability to convert customer acquisition into repeat purchases and sustained revenue growth will shape its path to profitability. Its next phase will depend on balancing growth with better cost efficiency.

The skincare segment has seen too many firms cross the Rs 100-150 crore milestone, only to struggle for growth, especially growth with profitability after that as investors hold out for a sale or margin improvement. Deconstruct, as far as we can tell, has not followed a significantly different route, to provide any indication for the future. Will it be acquired? Or will it cross the Rs 250 crore mark in FY27 to make it a really compelling story? Turning profitable will certainly help valuations from here on, although seeing the patchy record of acquired firms, it would be nice to see a firm break out and go it alone as well.