Novus Loyalty targets doubling revenue in FY27
Management expects growth to exceed 100% this year, fueled by IPO proceeds and a pivot toward a product-heavy revenue model.
What's new
- Management targets >100% revenue growth for FY27.
- The company plans to shift from a 70% service-based model to 90% product-based over five to seven years.
- International revenue is targeted at ₹6 cr for FY27, up from ₹3.3 cr in FY26.
Why this matters
Novus Loyalty is betting its future on a product-led transition to expand margins. While the growth targets are aggressive, the company's ability to execute this shift while managing international acquisitions will determine if it can sustain its current momentum.
What we're watching
- Quarterly progress on the transition to a 90% product-based revenue mix.
- Integration of planned acquisitions in the US and Australia.
- Actual conversion of the ₹6 cr international revenue target.
The full read
Novus Loyalty is aiming for a massive scale-up in FY27, with management guiding for revenue growth of more than 100%. This growth is expected to be supported by the deployment of IPO proceeds and the maturation of existing customer programs.
It is an aggressive target.
In FY26, the company recorded revenue of ₹127 crore, with EBITDA and PAT growing by 120% and 150% respectively. Beyond the top-line expansion, CEO Deepak Tomar is initiating a long-term shift in the business model, aiming to move from a 70% service-based revenue structure to a 90% product-based model over the next five to seven years to improve margins. International expansion is also on the agenda, with the company targeting ₹6 crore in overseas revenue for FY27, nearly doubling the ₹3.3 crore reported in FY26, through expansion into the Middle East and Africa alongside small acquisitions in the US and Australia.
Questions answered
- What were the company's financial results for FY26?
- Novus Loyalty reported revenue of ₹127 crore, EBITDA of ₹12.33 crore, and PAT of ₹9.28 crore for FY26.
- How does the company plan to achieve its growth targets?
- Growth is expected to come from maturing customer programs and the deployment of IPO proceeds.
- What is the core strategy for margin improvement?
- CEO Deepak Tomar plans to shift the revenue mix from 70% service-based to 90% product-based over the next five to seven years.
- What is the scale of the company's international expansion?
- The company targets ₹6 crore in overseas revenue for FY27, compared to ₹3.3 crore in FY26, through expansion into the Middle East, Africa, and small acquisitions in the US and Australia.