Bengaluru-based home healthcare provider Portea reported improved financials for the year ended March 2025, with operating revenue rising to ₹160 crore and net losses narrowing substantially, reflecting stronger unit economics and tighter cost controls even as broader profitability metrics remain under pressure.
Revenue and earnings snapshot
Portea’s operating revenue for FY25 stood at ₹160 crore, up about 15% from ₹139 crore a year earlier. The company reduced its net loss to ₹19 crore in FY25 from ₹37 crore in FY24, a near 49% decline, signalling improved operational efficiency and better cost management across the business.
Services and product mix
Core home healthcare services continued to drive growth. Services — including home nursing, physiotherapy, diagnostics, doctor consultations, medical equipment rentals and trained attendants — contributed nearly 59% of operating revenue, generating about ₹95 crore, a 16% year-on-year increase.
The product segment also showed steady momentum. Sales of medical devices and equipment such as oxygen concentrators, nebulisers and BiPAP machines rose about 14% to approximately ₹56 crore, supporting a balanced revenue mix between services and product sales.
Cost controls and unit economics
Total expenses were largely flat at around ₹179 crore, but Portea made notable progress on cost optimisation. Employee benefit expenses fell 4.5% to ₹52.5 crore, reflecting improved manpower planning and productivity.
Certain expense heads increased: consultancy fees rose about 7% to roughly ₹44 crore, material costs were up 21%, and advertising and promotional spending increased 25% as the company invested more in brand visibility and customer acquisition. Other operational expenses, including legal, professional and finance charges, cumulatively exceeded ₹30 crore.
Overall cost efficiency improved: Portea spent ₹1.12 to earn every ₹1 of operating revenue in FY25, compared with ₹1.29 in FY24, indicating better unit economics.
Profitability and liquidity
Despite narrowing losses, key profitability ratios remain negative. Portea reported an EBITDA margin of -6.9% and a negative return on capital employed (ROCE) of around 40% in FY25, underscoring the ongoing challenge of achieving sustained profitability.
On liquidity, the company held ₹1 crore in cash and bank balances and reported nearly ₹68 crore in current assets as of March 2025, indicating a modest but stable short-term liquidity position.
Funding, IPO status and sector outlook
Portea has raised close to $123 million to date from investors including Accel and Ventureast, funds that have supported geographic expansion and technology development. The company received regulatory approval in 2023 for a ₹1,000 crore initial public offering, but has not set a timeline for listing, reflecting caution given prevailing market conditions.
Industry dynamics remain favourable for home healthcare: rising health awareness, an ageing population and growing preference for at-home medical services support long-term demand. However, competition is intense, and Portea’s path to durable profitability will depend on its ability to scale services profitably while maintaining clinical quality and operational discipline.
