Gifting retailer Ferns N Petals has reported revenue of ₹1,085 crore for FY26, marking a 25% annual growth rate. The company is now focusing on improving profit margins after a period of financial losses. Investors may monitor the firm’s progress toward its 5-6% profit margin target for FY27.
Ferns N Petals has reached a revenue milestone of ₹1,085 crore for the fiscal year 2026, representing a 25% growth compared to the previous period. The company, which started as a single floral store in Delhi in 1994, has since evolved into a diversified gifting ecosystem, expanding far beyond its original retail roots.
Transitioning to a Sustainable Business Model
The company’s growth path has been rapid, with revenue climbing from ₹426 crore in FY21 to over ₹1,000 crore in FY26. This period of aggressive expansion, however, came with financial pressure. The firm recorded a peak loss of ₹109.5 crore in FY23, a challenge often seen in companies scaling their digital presence and logistics infrastructure.
To manage this, the leadership has shifted its focus toward fiscal discipline. In 2022, the business secured approximately $26.1 million in funding from the Lighthouse India Fund III, a move that valued the entity at roughly $326 million. This capital has supported its shift from a pure-play flower shop to a broader gifting and event services platform.
Improving Profitability and Margins
A central focus for the company is improving its core earnings margins, which currently stand at 2.5%. Management has set a goal to reach a margin of 5-6% by FY27. Achieving this improvement will require the company to control costs more effectively while maintaining the scale it has built through its nationwide delivery and digital systems.
The gifting sector in India remains highly competitive, with numerous players vying for market share. For the company, the primary challenge is to maintain its revenue momentum while proving that it can operate profitably. The key update for the future will be the company’s ability to move closer to its margin targets and whether it can sustain its growth without the heavy losses seen in earlier fiscal years.