Licious's Revenue Growth Driven by City Focus
Licious closed fiscal year 2026 with ₹1,166 crore in net revenue, a significant 47% increase from the previous year. This growth was achieved by focusing on deeper market penetration within its existing urban areas, rather than expanding to entirely new regions. Online sales remained a key driver, growing 28% to ₹1,000 crore in FY26, thanks to improved delivery systems and a stronger presence in established markets. The company's strategy of combining online and physical stores also showed progress, with offline revenue climbing to ₹177 crore in FY26 from ₹26 crore in FY25, supported by over 60 outlets that serve as key places for customers to engage with the brand.
Investing Heavily to Scale Up
Despite the strong revenue figures, Licious increased its EBITDA burn – the cash spent on operations before accounting for interest, taxes, depreciation, and amortization – to ₹187 crore in FY26, up from ₹168 crore in FY25. This increase stems from substantial investments aimed at scaling infrastructure and expanding its physical retail footprint. Plans include significantly growing the dark store network from 130 to approximately 400 locations over the next five years, with about 70 new stores planned for FY27. While the absolute cash spent increased, it represented a smaller share of net revenue, falling by 5.2 percentage points, which suggests potential for improved efficiency as sales grow. The company reports high customer retention, with 94% of its business coming from repeat customers, and has over 1.5 million monthly active users. Its 'Flash' 30-minute delivery service now reaches 55% of online customers, positively influencing purchasing behavior, and the average order value stands at ₹675.
Competition in India's Food Tech Market
Licious operates in a rapidly expanding Indian online grocery and food delivery market, valued in the billions and projected to grow significantly. Food delivery is seen as the main profit driver in this sector, though quick commerce faces fierce competition. Licious has established itself as a leader in its specific niche of meat and seafood. However, competitors like FreshToHome are also active, with FreshToHome reportedly generating a substantial portion of Licious's revenue. In the broader food tech space, major players like Zomato command large market capitalizations, indicating the high valuations possible for established companies, but also the intense capital required to compete.
Challenges of Growth and Profitability
The rising absolute EBITDA burn of ₹187 crore in FY26 highlights the costs associated with Licious's expansion efforts, including its investment in physical stores and dark fulfillment centers. This hybrid model, combining online and offline, adds considerable capital expenditure and ongoing operational overhead. The company relies heavily on repeat customers, which could indicate challenges in attracting a much larger base of new buyers, especially as competitors like FreshToHome and Zappfresh vie for market share. Licious's focus on premium food items could also make it vulnerable if the economy slows or consumers cut back on non-essential spending, particularly if inflation drives up costs.
Looking Ahead: The Path to ₹1,800 Crore
Licious has set an ambitious target of ₹1,800 crore in revenue for FY27. Achieving this will depend on continuing to expand its presence in existing cities and growing its dark store network. The company's strategy centers on deepening engagement with its current customer base and leveraging its combined online and offline model. While the Indian food tech market offers vast potential, Licious must carefully manage its increasing expansion costs and the highly competitive environment. Its success in turning growing revenue into consistent profit will depend on optimizing operations and effectively managing its significant investments.