Mamaearth parent Honasa reports 93% jump in profit to Rs 50 crore in Q3 FY26

Honasa Consumer Ltd., the Gurugram-based beauty and personal care House of Brands and parent of Mamaearth, reported a strong improvement in profitability for the quarter ended December 31, 2025, even as revenue growth remained measured.

The company posted revenue from operations of Rs 602 crore in Q3 FY26, up 16.2% from Rs 518 crore in Q3 FY25, according to its financial statements filed with the National Stock Exchange. On a like-for-like basis, revenue stood at Rs 630 crore, up 21.7% year-on-year, marking its highest-ever quarterly revenue.

For the nine months ended FY26, operating revenue rose 13.1% to Rs 1,735 crore from Rs 1,533 crore a year earlier.

Profitability improved sharply. Profit after tax nearly doubled to Rs 50 crore in Q3 FY26 from Rs 26 crore in the year-ago period, reflecting a 92.9% growth. On a sequential basis, PAT increased 28% from Rs 39 crore in Q2. PAT margin expanded to 8.3% from 5.0% a year ago.

EBITDA for the quarter rose 150.7% to Rs 66 crore from Rs 26 crore, with EBITDA margin improving to 10.9% from 5.0%. Profit before exceptional items and tax stood at Rs 72 crore, compared with Rs 29 crore a year earlier. After accounting for exceptional items of Rs 5 crore related to labour code impact, profit before tax came in at Rs 67 crore, up 128% year-on-year. Tax expense was Rs 17 crore.

For the nine-month period, EBITDA increased 282.6% to Rs 159 crore from Rs 42 crore, while PAT rose 174.1% to Rs 131 crore from Rs 48 crore. EBITDA margin expanded to 9.2% from 2.7%, and PAT margin improved to 7.5% from 3.1%.

Gross profit in Q3 stood at Rs 412 crore, up from Rs 362 crore a year earlier. However, gross margin moderated to 68.5% from 70%. For the nine-month period, gross profit rose to Rs 1,215 crore, with gross margin at 70.1%, largely stable year-on-year.

On the cost side, procurement expenses rose 19.6% to Rs 189 crore, accounting for 34% of total expenditure. Employee benefit expenses increased to Rs 71 crore, representing 11.8% of revenue versus 10% last year. Advertising expenses rose to Rs 186 crore from Rs 177 crore, though as a percentage of revenue they declined to 30.9% from 34.3%. Other expenses fell to Rs 90 crore from Rs 107 crore, reducing their share of revenue to 15% from 20.6%.

Total expenditure for the quarter increased 8.5% to Rs 550 crore from Rs 507 crore. The company also recorded Rs 21 crore as other income, taking total income to Rs 622 crore.

Commenting on the performance, Varun Alagh, Chairman, CEO and Co-founder, said, “Q3 FY26 marked a step-up quarter for Honasa as we delivered our highest-ever quarterly revenue of Rs 630 Cr, with profits nearly doubling year-on-year. Our focus categories continued to anchor performance, reaffirming the strength of our category-first growth playbook. We remain committed to building scale through disciplined execution and long-term value creation. Our flagship and largest brand, Mamaearth, is back to double-digit growth, driven by product superiority and sharper investments.”

He added that the company remains focused on strengthening its margin profile, improving capital efficiency and building a structurally stronger business capable of compounding growth sustainably.

Ghazal Alagh, CIO and Co-founder, said, “Innovation and re-innovation remain at the heart of how we build our brands at Honasa. We constantly challenge ourselves to raise the bar on formulation and efficacy. Products like Mamaearth Rice Face Wash and BBlunt Intense Moisture Shampoo performing strongly against leading national and international benchmarks reaffirm our belief that consumers reward genuine product superiority.”

During the quarter, focus categories grew over 25%. Mamaearth returned to double-digit growth, supported by sharper investments and product-led gains in market share. The Derma Co. maintained a double-digit EBITDA profile while scaling efficiently, and younger brands recorded growth of over 25%.

Offline distribution expanded meaningfully. Direct outlet coverage crossed 1 lakh outlets, while total distribution grew over 25% year-on-year to 2.7 lakh outlets, with increased focus on the top 100 towns.

The company also entered the men’s grooming segment by acquiring a 95 percent stake in South India-focused Reginald Men, owned by BTM Ventures Pvt Ltd, for Rs 195 crore through a secondary transaction. In addition, Varun Alagh increased his equity stake to 32.45% through a Rs 50 crore block deal during the quarter.