Honasa Consumer, the parent company of beauty and personal care brand Mamaearth, reported a 13% year-on-year (YoY) rise in operating revenue to Rs 533 crore for the March quarter. The growth — in a quarter when most fast-moving consumer goods (FMCG) companies have reported single-digit expansion of their topline — signals a recovery from the negative impact of its offline restructuring, which began in the July-September 2024 period.
Honasa Consumer’s net profit came in at Rs 25 crore, down 16% from Rs 30 crore in January-March 2024.
Over the last few quarters, the Gurugram-based firm's financials were subdued as a result of the offline distribution restructuring exercise — Project Neev.
As part of this exercise, Honasa transitioned to a direct distribution model in the top 50 cities during the quarter ended September 2024. Due to this shift, the company recorded a sales return provision of Rs 63.5 crore in that quarter.
For the July-September period, Honasa Consumer reported a 7% on-year decline in operating revenue at Rs 462 crore. It posted a net loss of Rs 19 crore in the quarter, compared to a Rs 30 crore net profit in the same period last year. Meanwhile, in the quarter ended December, its consolidated net profit came in at Rs 26 crore, which was flat compared to what it reported in the year-ago period.
Speaking to ET, Honasa Consumer’s cofounder and CEO Varun Alagh said that the negative impact of the restructuring exercise has passed. “The positive delta that (this process) will start to deliver is something we will see in the next fiscal,” he said.
“Earlier, a lot of our distribution was through indirect or wholesalers…now because of working with distributors directly, we’ve been able to double our direct distribution from 50,000 to 100,000 (offline stores), and the intent will be to add another 50,000 stores in the next 12 months,” Alagh said.
For fiscal 2026, he said that the company expects the full-year growth to bounce back to double digits. In FY25, Honasa Consumer recorded revenue growth of 8%.
Mamaearth is the biggest brand in Honasa Consumer’s portfolio, which also has brands such as The Derma Co, Aqualogica, Dr Sheth’s, Bblunt, and Staze Beauty.
Besides the offline restructuring, the company had also flagged structural issues with the Mamaearth brand that led to it growing slowly.
Alagh said that the company has now tightened its focus on key categories. These are face wash, shampoo, sunscreen, moisturiser and baby care. He added that these categories contribute to approximately 70% of Mamaearth’s revenues.
Additionally, The Derma Co — Honasa Consumer’s second-largest brand and the only one besides Mamaearth with an offline presence — has achieved an annualised revenue run rate of Rs 100 crore from offline sales. Alagh said that with The Derma Co, the company is focussing only on key products and stock-keeping units (SKUs) and is particularly targeting the chemist supply chain.
Honasa Consumer’s net profit came in at Rs 25 crore, down 16% from Rs 30 crore in January-March 2024.
Over the last few quarters, the Gurugram-based firm's financials were subdued as a result of the offline distribution restructuring exercise — Project Neev.
As part of this exercise, Honasa transitioned to a direct distribution model in the top 50 cities during the quarter ended September 2024. Due to this shift, the company recorded a sales return provision of Rs 63.5 crore in that quarter.
For the July-September period, Honasa Consumer reported a 7% on-year decline in operating revenue at Rs 462 crore. It posted a net loss of Rs 19 crore in the quarter, compared to a Rs 30 crore net profit in the same period last year. Meanwhile, in the quarter ended December, its consolidated net profit came in at Rs 26 crore, which was flat compared to what it reported in the year-ago period.
Speaking to ET, Honasa Consumer’s cofounder and CEO Varun Alagh said that the negative impact of the restructuring exercise has passed. “The positive delta that (this process) will start to deliver is something we will see in the next fiscal,” he said.
“Earlier, a lot of our distribution was through indirect or wholesalers…now because of working with distributors directly, we’ve been able to double our direct distribution from 50,000 to 100,000 (offline stores), and the intent will be to add another 50,000 stores in the next 12 months,” Alagh said.
For fiscal 2026, he said that the company expects the full-year growth to bounce back to double digits. In FY25, Honasa Consumer recorded revenue growth of 8%.
Mamaearth is the biggest brand in Honasa Consumer’s portfolio, which also has brands such as The Derma Co, Aqualogica, Dr Sheth’s, Bblunt, and Staze Beauty.
Besides the offline restructuring, the company had also flagged structural issues with the Mamaearth brand that led to it growing slowly.
Alagh said that the company has now tightened its focus on key categories. These are face wash, shampoo, sunscreen, moisturiser and baby care. He added that these categories contribute to approximately 70% of Mamaearth’s revenues.
Additionally, The Derma Co — Honasa Consumer’s second-largest brand and the only one besides Mamaearth with an offline presence — has achieved an annualised revenue run rate of Rs 100 crore from offline sales. Alagh said that with The Derma Co, the company is focussing only on key products and stock-keeping units (SKUs) and is particularly targeting the chemist supply chain.
