The world of celebrity-led beauty brands presents a mixed financial picture, as evidenced by the latest Ministry of Corporate Affairs (MCA) filings for Bollywood A-listers. Superstar Deepika Padukones mid-premium skincare brand, 82°E, has declared a net loss of ₹12.3 crore for the financial year 2025 (FY25). This challenging performance contrasts sharply with the success of fellow actor Katrina Kaif’s makeup brand, Kay Beauty, which continues to be profitable and is forecasted to hit a major revenue milestone.

A Dip in Revenue Despite Star Power

Launched in November 2022, 82°E has positioned itself in the competitive mid-premium skincare segment, with products priced upwards of ₹2,500. Despite leveraging Deepika Padukone's massive social media presence and global influence, the brand has struggled to achieve profitability since its inception.

The latest filings show a concerning dip in the company's revenue, which fell from ₹21.2 crore in FY24 to ₹14.7 crore in FY25—a drop of over 30%. Although the net loss of ₹12.3 crore in FY25 is an improvement over the ₹23.4 crore net loss reported in FY24, the decline in sales revenue indicates a significant challenge in converting initial hype into sustainable, repeat purchases.

Cutting Costs to Achieve Stability

In response to the ongoing financial struggle, the company has implemented aggressive cost-cutting measures. The financial statements reveal a substantial reduction in total expenditure, which dropped from an estimated ₹47.1 crore in FY24 to ₹25.9 crore in FY25.

The most drastic cut was seen in the marketing budget, which was slashed by nearly 78%—from approximately ₹20 crore down to ₹4.4 crore in FY25. This strategic pullback suggests the company recognized that its initial heavy marketing investment was not translating into sustainable sales growth and is now focusing on increasing sales efficiency and reducing operational expenses to pave the way toward a profitable track record.

The Competition Conundrum and Pricing Challenge

The difficulty faced by 82°E is often attributed to its pricing strategy within an overcrowded market. The mid-premium skincare space is fiercely contested by well-funded direct-to-consumer (D2C) brands that offer quality products at more accessible price points.

Experts suggest that while celebrity endorsement drives initial traffic, long-term success demands superior product efficacy and value that justifies the premium price tag. For 82°E, the lack of a clear "hero" product or a strong, non-celebrity-dependent brand identity may be hindering its ability to carve out a loyal customer base against aggressive rivals.

Katrina Kaif’s Kay Beauty: A Model of Profitability

In stark contrast, Katrina Kaif’s makeup brand, Kay Beauty, presents a different blueprint for celebrity-led business success. Launched earlier in 2019 in collaboration with retail giant Nykaa, Kay Beauty has been profitable since 2022.

The brand's success is often credited to its strategy of offering high-quality, mid-range priced makeup products that prioritize accessibility and cater to the everyday Indian consumer. Kay Beauty's revenue reached an impressive ₹88.23 crore in FY24, reporting profits of ₹11.3 crore. Industry analysts estimate the brand is poised to continue its growth, with projected revenues hitting the ₹100–105 crore mark this fiscal year, underscoring the success of its accessible pricing and strategic retail partnership.

The diverging financial paths of the two celebrity-backed ventures highlight a crucial lesson: in the saturated beauty industry, star power provides a launchpad, but commercial viability rests on smart pricing, strategic distribution, and a product that deeply resonates with the target market's value proposition.
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