In its latest financial results, L’Oréal India has posted a notable rise in profit for the year ending March 2025. Net profit increased by 22.6% to INR 597.5 crore, compared with INR 487.5 crore in FY24. Meanwhile, net sales rose by 6.25% to INR 5,925.3 crore.
This growth was supported by a moderate rise in total income (including other income), which climbed by 5.2% to INR 5,979.2 crore. The company also managed to slightly reduce its advertising and promotional expenses by about 3%, bringing them down to INR 1,663.2 crore.
| Financial Metric | FY24 (₹ Crore) | FY25 (₹ Crore) | Change (%) |
|---|---|---|---|
| Operating Revenue | 5,576 | 5,925 | 6% |
| Total Expenses | 5,023 | 5,162 | 2.8% |
| Profit After Tax (PAT) | 487 | 597 | 23% |
Slower Sales Growth Amid Rising Pressure from D2C Rivals
While the profit jump is impressive, L’Oréal India’s topline growth was more modest. Some reports suggest sales increased by around 5%, under pressure from growing competition from direct-to-consumer (D2C) brands. These newer beauty firms are increasingly targeting younger consumers with digital marketing and streamlined product portfolios.
The challenge is clear: while L’Oréal continues to command a strong presence in traditional channels, the shift in consumer habits toward online and direct purchases is intensifying competition in key segments.
Strategic Moves, Future Plans, and Market Outlook
To deepen its roots in India, L’Oréal’s global board is expected to visit the country soon to assess growth opportunities. The visit will coincide with recent leadership changes: Jacques Lebel has been appointed country manager, and Aseem Kaushik has been elevated as chairman, effective from 1 October.
The company is also planning to scale up production locally. One report suggests L’Oréal intends to more than double its business in India over the coming years and expand manufacturing capacity.
India remains a highly strategic market for global beauty firms. With a young population, rising incomes, and growing internet penetration, domestic demand for cosmetics and personal care continues to expand. Analysts expect this trend to encourage further investment from multinational brands as well as homegrown players.
Muskaan Kapoor
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