HomeLane’s Revenue Barely Moved in FY26. Its Factory Economics Did

HomeLane spent FY26 doing something that does not immediately show up as growth: combining two home-interiors businesses into one operating system. Revenue remained almost flat, but the company says the integration work has begun improving the economics underneath each project.

The Bengaluru-based home-interiors company reported ₹745 crore in FY26 revenue, compared with ₹756 crore a year earlier. EBITDA loss stood at ₹137 crore, including ₹19 crore of one-time integration expenses. FY26 was the first full year in which HomeLane focused heavily on integrating DesignCafe across manufacturing, procurement, technology and support functions.

One of the biggest changes happened behind the showroom. HomeLane previously operated five factories while DesignCafe had two. Those operations have now been consolidated into a single manufacturing setup capable of processing roughly 1.5 million sq ft of modular furniture every month.

The restructuring has started showing up in project economics. Direct project costs fell to 52% of revenue from 56.6% in FY25, an improvement of 460 basis points. HomeLane has also expanded its private-label Tyrox hardware across both brands, with the range now accounting for more than half of the hardware used by HomeLane.

By Q4 FY26, the company had turned operating EBITDA positive, reporting an operating EBITDA margin of around 5% on ₹212 crore of quarterly revenue. HomeLane is now targeting full-year EBITDA profitability in FY27 and believes quarterly revenue of roughly ₹240–250 crore would be needed to sustain positive operating performance.

Growth is returning to the agenda as well. HomeLane is targeting ₹1,000 crore in FY27 revenue, roughly 34% above FY26, supported by new studios and stronger performance from existing locations. It is also expanding through a franchise-owned, franchise-operated model while using AI to reduce design costs.

HomeLane still targets an IPO in FY28 and says it has more than two years of cash runway. The next test is whether a year spent simplifying the backend can now translate into both faster growth and sustained profitability.