Deepika Padukone’s 82°E stumbles as losses mount; Katrina Kaif’s Kay Beauty nears ₹100-crore milestone

Deepika Padukone’s skincare brand 82°E has reported net losses of ₹12.3 crore in FY25, alongside a steep fall in revenue—from ₹21.2 crore in FY24 to ₹14.7 crore this year, according to Ministry of Corporate Affairs filings.

The brand, launched in November 2022 with a mid-premium positioning, has yet to post a profitable year. The latest disclosure comes even as 82°E slashed its spending significantly, signalling attempts to pivot toward sustainability.

Despite the correction, the financial trajectory continues to raise questions about growth strategy, scalability and product-market fit—especially in India’s increasingly competitive beauty and skincare space.

Cost cuts fail to reverse decline

82°E’s filing states that the company is “actively reducing expenditure and enhancing sales efforts” to push toward profitability. However, the downward revenue trend signals deeper business challenges.

The brand cut its total spending from ₹47.1 crore in FY24 to ₹25.9 crore this year. Its marketing expenses saw the sharpest decline—dropping from nearly ₹20 crore to just ₹4.4 crore, according to Moneycontrol.

Even with lower expenditure, the brand remains in the red, though the losses have narrowed from the previous fiscal when it reported a net loss of ₹23.4 crore, per Tracxn data.

Why 82°E is losing ground

Priced between ₹2,500 and ₹4,000, 82°E operates in a difficult middle zone: too expensive for mass-market consumers and not competitive enough to command luxury pricing power.

Despite heavy celebrity-driven promotion—including a campaign with Shah Rukh Khan timed with the release of Jawan—the brand has struggled to scale. Rivals such as Foxtale, mCaffeine, Plum and Dot & Key are rapidly expanding in the same category with more accessible pricing and stronger digital loyalty.

Meanwhile, the luxury skincare segment remains largely captured by established global players such as Estée Lauder and L’Occitane, leaving 82°E squeezed between two powerful ends of the spectrum.

Katrina Kaif’s Kay Beauty: A contrasting success story

While Deepika’s venture searches for stability, Katrina Kaif’s Kay Beauty continues its strong run. The makeup brand, launched in 2019 in partnership with Nykaa, turned profitable by 2022.

Kay Beauty reported revenue of ₹88.23 crore in FY24 and a profit of ₹11.3 crore. Industry estimates now predict the brand will surpass ₹100 crore in revenue in the current fiscal—solidifying its position as one of India’s most successful celebrity beauty labels.

Nykaa holds a 51% stake in the venture, while Kaif owns 42%. The brand benefits from both strategic retail integration and strong product-market alignment—particularly in a price segment where Indian shoppers are spending more.

The verdict: star power alone won’t build a beauty empire

As India’s beauty and personal care market accelerates toward a projected $30 billion valuation by 2030, celebrity-led brands are finding themselves under pressure to justify their hype with product performance, not just endorsements.