Honasa Consumer, the parent company of Mamaearth, reported a net profit of ₹25 crore in the fourth quarter of FY25, down 18% from ₹30 crore in the same period last year. Despite the decline, the profit was higher than street expectations of ₹17.3 crore, driven by strong growth in key product categories.
The company’s revenue from operations rose 13.3% year-on-year to ₹533.56 crore, aligning with Bloomberg Consensus estimates. Last year, Honasa had posted a revenue of ₹471 crore during the same quarter.
Honasa’s key product segments such as face wash, shampoo, sunscreen, moisturiser, and baby care saw double-digit year-on-year growth. Together, these five categories contributed 70% of the revenue in Q4. Moreover, younger brands like BBlunt, Dr Sheth’s, Staze, and Aqualogica posted over 30% growth.
In FY25, Honasa also focused on improving its media mix, which helped drive double-digit growth in modern trade and e-commerce. Sales through big stores grew by 20% compared to the same quarter last year, while e-commerce also saw a double-digit rise in demand.
In Q2 FY25, Honasa had reported a loss of ₹18.5 crore due to its Project Neev, which aimed to change the company’s direct-to-consumer (D2C) distribution model. This involved moving away from super stockists and shifting to direct distribution in India’s top 50 cities.
Honasa has nearly doubled its direct distribution outlets to 102,000, up from 45,000-50,000 last year. The contribution of direct distribution to sales increased to 71% in Q4, from 38% in FY24.
In FY26, the company plans to add another 50,000 outlets to further boost control and efficiency.
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Honasa has increased its use of agentic AI in areas like content evaluation, purchase assistance, and social listening. It plans to enhance its AI-driven workflows further and focus on launching new serums in the coming year.
Despite a dip in quarterly profit, Honasa Consumer has shown strong signs of recovery with solid revenue growth and a successful distribution shift. Its focus on core categories, premiumisation, and digital tools positions Mamaearth and its sister brands well for future growth.
At 10:00 AM, the Honasa share price was up 12.12% and was trading at ₹308.51.
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Published on: May 23, 2025, 10:29 AM IST
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