From D2C to Omnichannel: An Empirical Study of Growth, Profitability and Financial Sustainability of Selected Indian Consumer Brands
DOI:
https://doi.org/10.54741/MJAR/6.5.2026.337Keywords:
D2C, e-commerce, omnichannel retail, profitability, financial sustainability, digital commerce, indian consumer brands, compound annual growth rate (CAGR), earnings before interest, taxes, depreciation and amortisation (EBITDA)Abstract
The rapid expansion of direct-to-consumer (D2C) businesses has transformed the Indian retail environment by enabling brands to reach consumers directly through digital channels. However, revenue growth alone does not establish financial sustainability. Increasing expenditure on marketing, technology, fulfilment and physical expansion has encouraged several digital-first businesses to adopt omnichannel strategies. The present study examines the growth, profitability and selected indicators of financial sustainability of four prominent Indian digital-first and omnichannel consumer businesses: Nykaa, Honasa Consumer, FirstCry and Lenskart—during FY2022-23 to FY2025-26. The study uses consolidated secondary financial data and applies simple descriptive techniques comprising revenue growth, Compound Annual Growth Rate (CAGR), Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) margin, net profit margin, mean, standard deviation, coefficient of variation and comparative ranking. No complex econometric technique is employed. The results indicate that all four companies achieved substantial revenue expansion, but the conversion of growth into profitability differed markedly. Lenskart recorded the highest revenue CAGR and the strongest average EBITDA and PAT margins, while Nykaa showed consistent revenue growth and steadily improving profitability. Honasa Consumer displayed a temporary decline in profitability followed by a strong recovery in FY2025-26. FirstCry improved its EBITDA margin and reduced its consolidated losses, but remained loss-making throughout the study period. The findings suggest that D2C growth becomes financially sustainable only when scale is accompanied by improving operating margins and the ability to reduce or eliminate losses.
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Copyright (c) 2026 Mahasweta Chakraborty, Sangita Sen, Ashirbani Bardhan
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