Honasa Consumer, the parent company of Mamaearth, posted a robust 13% year-on-year increase in operating revenue for the quarter ended March 2025. Revenue rose to ₹534 crore, up from ₹471 crore in the same period last year. This growth comes as the company bounces back from a challenging period marked by a major restructuring of its offline distribution channels.
Net Profit Drops Despite Higher Revenue
Despite the impressive topline growth, Honasa’s net profit for Q4 FY25 fell by 16% to ₹25 crore, compared to ₹30 crore a year earlier. The dip in profit reflects the lingering impact of the company’s transition to a direct distribution model, which aimed to streamline operations and improve efficiency.
Full-Year Performance: Revenue Up, Profit Down
For the full financial year FY25, Honasa’s operating revenue climbed to ₹2,067 crore, an increase of nearly 8% over the previous year. However, net profit for the year dropped to ₹73 crore, down from ₹110 crore in FY24. The decline in profit is attributed to higher expenses related to the restructuring and increased spending on employee benefits, marketing, and other overheads.
Project Neev: Distribution Overhaul Shows Results
Honasa’s Project Neev, which involved shifting from indirect wholesale channels to direct billing to distributors in India’s top 50 cities, has started to yield positive results. The company’s offline reach doubled from 50,000 to 1,00,000 outlets, with plans to expand to 1,50,000 stores in the coming year. The transition, though initially disruptive, is now driving operational efficiency and better control over margins.
Operational Highlights and Brand Performance
- Gross profit margin improved to 70.7% in Q4 FY25, up by 76 basis points year-on-year, driven by a better product mix and operational efficiencies.
- EBITDA margin for the quarter stood at 5.1%, reflecting early gains from the new go-to-market strategy.
- Volume growth for the quarter was strong at over 21%, indicating healthy consumer demand.
- Mamaearth’s core categories—face wash, shampoo, sunscreen, moisturiser, and baby care—contributed about 70% of total revenue and saw double-digit growth.
- The company’s younger brands, including BBlunt, Dr. Sheth’s, Staze, and Aqualogica, grew over 30% year-on-year in FY25.
- The Derma Co, Honasa’s second-largest brand, crossed ₹100 crore in annualised offline revenue, strengthening its presence in the premium skincare segment.
Omnichannel Expansion and Future Outlook
Honasa has significantly increased its direct distributor network, with the share of direct distribution rising from 38% in FY24 to 71% in Q4 FY25. Modern trade sales grew over 20% year-on-year, and e-commerce channels also saw a double-digit rise in demand.
Looking ahead, Honasa expects to return to double-digit revenue growth in FY26, driven by its omnichannel strategy and focus on high-performing product categories. The company is committed to deepening its offline reach and building a future-ready house of brands for India’s beauty and personal care market.
Key Financial Highlights
- Q4 FY25 Revenue: ₹534 crore (up 13% YoY)
- Q4 FY25 Net Profit: ₹25 crore (down 16% YoY)
- FY25 Revenue: ₹2,067 crore (up 8% YoY)
- FY25 Net Profit: ₹73 crore (down from ₹110 crore in FY24)
- Offline store reach: Doubled to 1,00,000; target 1,50,000 in next 12 months
- Direct distribution share: Rose to 71% in Q4 FY25
Honasa’s strong revenue growth and expanding offline presence highlight its renewed momentum, positioning the company for accelerated growth in the coming year.