IPO-bound Boat faces rising attrition on road to listing
IPO-bound consumer electronics maker Boat reported an attrition rate of 34% among its full-time employees for the financial year ended March 31, a rise from 28% in the previous year.
The company’s attrition has been on the rise since FY23, with 107 employees leaving that year, followed by 132 in FY24 and 161 in FY25. The first quarter of FY26 saw 31 employees exit the company in just three months, as per its updated draft red herring prospectus (UDRHP) filed with the market regulator.
“Competition for senior management and other key personnel with technical and industry expertise in our industry is intense, and we may not be able to recruit and retain suitable persons to replace the loss of any of our senior managers in a timely manner,” it said.
As of June 30, the company had a total workforce of 553 employees, along with 407 contractual workers, as per its UDRHP. The firm also said that difficulties in hiring and retaining skilled talent could negatively impact its growth and competitiveness.
“Although we have not experienced any strikes or labour unrest in the past, we cannot assure that our relations with our employees shall remain cordial at all times,” it added.
Recently, Sameer Mehta, cofounder and CEO of Imagine Marketing (the parent company of Boat), moved to the role of executive director, with COO Gaurav Nayyar taking on the position of CEO. Cofounder and CMO Aman Gupta has also moved to the role of a non-executive director on the board.
This leadership change came at a time when the company is set to go public. Boat has also slashed by a fourth the funds it plans to raise through the IPO. The company seeks to raise Rs 1,500 crore, which will comprise Rs 500 crore of fresh shares and an offer for sale (OFS) worth Rs 1,000 crore by existing investors, according to the updated prospectus.
For the first quarter of the ongoing fiscal year, Boat reported operating revenue of Rs 628 crore, up 11% from a year earlier. It posted a net profit of Rs 21 crore for the April-June period against a net loss of Rs 31 crore reported for the same period last year.
The company had posted a net profit of more than Rs 60 crore for fiscal 2025 compared with a net loss of Rs 80 crore the prior year, driven by product innovation and cost control. Consolidated revenue declined narrowly to Rs 3,098 crore from Rs 3,122 crore in FY24.
The company’s attrition has been on the rise since FY23, with 107 employees leaving that year, followed by 132 in FY24 and 161 in FY25. The first quarter of FY26 saw 31 employees exit the company in just three months, as per its updated draft red herring prospectus (UDRHP) filed with the market regulator.
“Competition for senior management and other key personnel with technical and industry expertise in our industry is intense, and we may not be able to recruit and retain suitable persons to replace the loss of any of our senior managers in a timely manner,” it said.
As of June 30, the company had a total workforce of 553 employees, along with 407 contractual workers, as per its UDRHP. The firm also said that difficulties in hiring and retaining skilled talent could negatively impact its growth and competitiveness.
“Although we have not experienced any strikes or labour unrest in the past, we cannot assure that our relations with our employees shall remain cordial at all times,” it added.
Recently, Sameer Mehta, cofounder and CEO of Imagine Marketing (the parent company of Boat), moved to the role of executive director, with COO Gaurav Nayyar taking on the position of CEO. Cofounder and CMO Aman Gupta has also moved to the role of a non-executive director on the board.
This leadership change came at a time when the company is set to go public. Boat has also slashed by a fourth the funds it plans to raise through the IPO. The company seeks to raise Rs 1,500 crore, which will comprise Rs 500 crore of fresh shares and an offer for sale (OFS) worth Rs 1,000 crore by existing investors, according to the updated prospectus.
For the first quarter of the ongoing fiscal year, Boat reported operating revenue of Rs 628 crore, up 11% from a year earlier. It posted a net profit of Rs 21 crore for the April-June period against a net loss of Rs 31 crore reported for the same period last year.
The company had posted a net profit of more than Rs 60 crore for fiscal 2025 compared with a net loss of Rs 80 crore the prior year, driven by product innovation and cost control. Consolidated revenue declined narrowly to Rs 3,098 crore from Rs 3,122 crore in FY24.
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