Founder Varun Alagh buys 1.6 lakh shares in Mamaearth parent firm Honasa Consumer

Varun Alagh, co-founder and CEO of Mamaearth parent company Honasa Consumer Limited, has acquired over 160,000 additional shares in the company.

The move, worth Rs. 4.26 crore, underlines his confidence in the brand's growth potential despite recent market turbulence.

Alagh's total shareholding now stands at approximately 10.371 crore shares, valued at Rs 2,722 crore ($324 million) as of Dec. 3.

Mamaearth's market performance

Mamaearth's stock has faced significant fluctuations over the past three months, with a 52-week high of Rs 547 in September and a low of Rs 222.5 in November.

Currently trading at Rs 278, the company's market capitalization is pegged around Rs 9,000 crore or over $1 billion.

Revenue challenges in Q2FY25

The share acquisition comes after a 9.3% decline in revenue during the second quarter of FY24.

Honasa reported consolidated revenue from operations of Rs 461.8 crore in Q2FY25, reflecting a year-on-year decline of 6.9% compared to Rs 496.1 crore in the same period last year.

However, the company registered a net loss of Rs 18.57 crore due to a one-time inventory correction and expenses associated with Project Neev, a strategic distribution overhaul. This contrasts with a profit of Rs 29.43 crore in the year-ago quarter and Rs 40.2 crore in Q1FY25.