Mamaearth-parent Honasa's revenue jumps 13% to Rs 534 crore in Q4FY25; profit falls 16% to Rs 25 crore

Honasa Consumer, the parent company of beauty and personal care brand Mamaearth, reported a 13.3% year-on-year increase in operating revenue to Rs 534 crore for the quarter ended March 2025, signalling early signs of recovery following a turbulent offline restructuring exercise that had weighed down performance in recent quarters.

The Gurugram-based company’s net profit dropped about 16% to Rs 25 crore, from Rs 30 crore in the same period a year earlier. This was despite the double-digit topline growth, suggesting the firm is still absorbing the after-effects of Project Neev — a transition to a direct distribution model in India’s top 50 cities, rolled out in Q2 FY25.

For FY25, Honasa's operating revenue rose 7.66% to Rs 2,067 crore from Rs 1,920 crore in FY24. Total income for the year stood at Rs 2,146 crore. Although overall revenue increased, full-year net profit declined to Rs 73 crore from Rs 110 crore in FY24.

During that July–September quarter, Honasa had reported a 7% year-on-year revenue decline and a Rs 19 crore net loss, largely driven by a sales return provision of Rs 63.5 crore attributed to the distribution shift. The offline restructuring involved moving away from indirect wholesale channels in favour of direct billing to distributors, a move the company believes will enhance margin control and visibility.

Speaking to The Economic Times, Varun Alagh, Co-founder and CEO of Honasa Consumer, said the worst of the restructuring impact is now over. “The positive delta that this process will start to deliver is something we will see in the next fiscal,” he said.

He added that direct distribution has now doubled Honasa’s offline store reach from 50,000 to 100,000 outlets, with plans to scale to 150,000 stores in the next 12 months.

Project Neev begins to show green shoots

According to NielsenIQ data cited by the company, Mamaearth has gained market share in its core categories and entered the Top 5 in the face wash segment. Mamaearth's category-level performance in e-commerce and modern trade also returned to double-digit growth in Q4 FY25, the company said.

While FY25 overall was subdued — Honasa clocked 8% revenue growth for the year — the company expects FY26 to bounce back to double-digit growth territory. Alagh said the firm has narrowed its focus on high-performing segments such as face wash, shampoo, sunscreen, moisturiser, and baby care, which together contribute about 70% of Mamaearth’s revenue.

Gross margins also improved by 76 basis points year-on-year to 70.7%, while EBITDA margin stood at 5.1% for the March quarter, suggesting early operational efficiency from its renewed go-to-market strategy.

The Derma Co hits Rs 100 Crore ARR Offline

Beyond Mamaearth, The Derma Co, Honasa’s second-largest brand, has crossed Rs 100 crore in annualised revenue from offline channels, building a strong presence especially through chemist networks. The brand continues to perform strongly online as well and is positioned in the premium skincare segment.

Other brands under the Honasa portfolio include Aqualogica, Dr. Sheth’s, Bblunt, and Staze Beauty — newer labels that the company says grew more than 30% year-on-year in FY25. Honasa also launched prestige skincare products like Vitamin C microneedle kits and high-efficacy serums under The Derma Co and Dr. Sheth’s.

Alagh said Honasa is now focused on deepening offline reach, expanding its direct distributor network, and building a full-stack omnichannel presence. In FY25, the contribution of direct distributors to Honasa’s overall business rose from 38% in FY24 to 71% in Q4 FY25, according to company data.

With modern trade offtake up more than 20% year-on-year, and digital channels regaining traction, Honasa sees the coming fiscal as a year of acceleration. “We’re building Honasa into a future-ready house of brands… We’re not just creating brands that lead today, but shaping the future of India’s beauty and personal care landscape,” Alagh said in the earnings statement.