Mamaearth parent Honasa records Rs 517 crore revenue in Q3 FY25; returns to profit

Honasa Consumer Ltd. (HCL), the parent company of personal care brands such as Mamaearth, Aqualogica, The Derma Co. and Dr. Sheth’s, bounced back in the third quarter of the fiscal year 2024-25 (Q3 FY25) with Rs 517.5 crore in revenue.

This marks a 5.9% increase from the Rs 488 crore it reported in the same period last year, according to consolidated financial statements filed with the National Stock Exchange.

Honasa returns to profitability

Notably, the company also returned to profitability, recording Rs 26 crore in net profit for the quarter—unchanged from Q3 FY24, but a significant improvement from the Rs 19 crore loss it posted in the previous quarter.

Honasa’s EBITDA for Q3FY25 came in at Rs 26 crore, a 23.53% year-on-year decline compared with Rs 34 crore in Q3FY24. EBITDA margin stood at 5% in Q3FY25 as against 7.1% in Q3FY24.

The company attributed the margin contraction to higher marketing expenses, though management indicated it expects margins to normalize in the longer term.

Honasa also shared its nine-month revenue figures, which touched Rs 1,533 crore, reflecting 5.8% year-on-year growth. When adjusted for one-time inventory correction in the July-September period, the nine-month revenue stood at Rs 1,596 crore with a 10.2% year-on-year increase.

The adjusted nine-month EBITDA margin was 5.9%, as opposed to 2.7% without excluding the one-time correction.

Strategic initiatives and growth

Honasa continued to place a strong emphasis on Project Neev, which involves strengthening its offline distribution through direct distributors in the top 50 cities. 

The company said it has completed the appointment of Tier-1 distributors in all these cities, moving away from reliance on super stockists. Although this transition impacted short-term financials, Honasa believes the shift will enable better market coverage and improved long-term profitability.

Mamaearth, its flagship brand, increased its market share and household penetration while reaching more than 2.16 lakh FMCG retail outlets across India by December 2024, a 22% year-on-year jump in distribution.

Mamaearth’s face wash segment gained 114 basis points in value market share, while its shampoo segment added 20 basis points, according to NielsenIQ data. The brand is perceived as the top player in online channels and the No. 3 brand offline in the face wash category, based on Kantar’s Brand Health Track.

According to Varun Alagh, chairman and CEO and co-founder of Honasa Consumer Ltd., the company remains focused on “driving disruptive innovation, deepening offline penetration, and delivering unique value propositions to consumers.”

The company’s emerging brands, which include The Derma Co., Aqualogica, BBlunt, and Dr. Sheth’s, collectively delivered more than 30% year-on-year growth in the nine months ended December 31.

Honasa’s focus categories such as face wash, shampoo, serums, moisturizers, sun care, and baby care grew about 18% in the same period, when adjusted for the one-time inventory correction.

Honasa plans to expand these categories further in the next three to five years. It also expects the moisturizer market to grow from around Rs. 3,172 crore in 2024 to about Rs. 5,962 crore by 2027 as consumers adopt more skincare products like sunscreen, toners, and lightweight moisturizers.