Skillmatics posts Rs 659 Cr revenue in FY26, profit rises marginally

Educational toys and games startup Skillmatics is reportedly in talks to raise fresh capital as it looks to expand its business. The potential fundraise comes as the company has scaled its revenue while remaining profitable. Skillmatics’ revenue from operations increased 34.5% year-on-year (YoY) to Rs 659 crore in FY26 from Rs 490 crore in FY25, according to its consolidated financial statements filed with the Registrar of Companies (RoC). The Mumbai-based company operates a direct-to-consumer (D2C) and omnichannel edutainment business, offering educational toys and learning games for children aged between one and 12 years. Skillmatics sells its products through its own website, e-commerce marketplaces, and retail stores across global markets. The company has a presence in more than 25 countries and works with over 3,000 retail stores internationally, with North America being its key market. A large part of its business comes from overseas markets. Around 87% of Skillmatics’ operating revenue was generated outside India, primarily through its US-based subsidiary Grasper Global Inc. The company also reported Rs 7.52 crore in other income during FY26, taking its total revenue to around Rs 667 crore from Rs 496 crore in FY25. While Skillmatics saw healthy growth in revenue, its expenses increased at a faster pace during the year. The company’s total expenditure rose 36.1% to Rs 652 crore in FY26 from Rs 479 crore in FY25. Marketing remained one of the biggest expenses for Skillmatics. The company spent around Rs 169 crore on marketing during the year, accounting for about 26% of its total expenditure. The cost of making toys and games was another major expense and stood at around Rs 130 crore in FY26. Other expenses, including packaging, commissions, transportation, employee benefits and other operating costs, also contributed to the increase in the overall cost base. As expenses grew faster than revenue, the company’s profit growth remained limited. Skillmatics’ net profit increased 4.2% to Rs 17.57 crore in FY26 from Rs 16.86 crore in FY25. Its EBITDA margin stood at 1.75%, while return on capital employed (ROCE) was recorded at 5.14% during the fiscal year. On a unit level, Skillmatics spent around 99 paise to earn every rupee of operating revenue in FY26, indicating the pressure from its growing cost base. The company ended FY26 with current assets of around Rs 222 crore, including cash and bank balances of Rs 75.5 crore. Skillmatics has built its business around the global market, particularly North America, where it has developed a sizeable presence across both online and offline channels. The company has raised around $28 million to date across its funding rounds and counts investors such as Peak XV Partners and Sofina among its backers. The rise in revenue shows that Skillmatics has continued to scale its global business, although the relatively modest growth in profit shows the higher costs involved in marketing, manufacturing, and expandin

Original source: Entrackr