- Honasa Consumer Ltd. saw a 5.9% revenue increase in Q3 FY25, with a Rs 26 crore net profit.
- Mamaearth increased its market share, and emerging brands saw 30% growth. Honasa plans to expand into skincare, and the moisturizer market is set to grow by 2027.
Honasa Consumer Ltd. (HCL), the parent company of brands like Mamaearth, Aqualogica, The Derma Co., and Dr. Sheth’s, reported Rs 517.5 crore in revenue for Q3 FY25, a 5.9% increase from Rs 488 crore in the same period last year, according to its consolidated financial statements.
Honasa Consumer Ltd. returned to profitability with a Rs 26 crore net profit in Q3 FY25, unchanged from Q3 FY24 and a recovery from a Rs 19 crore loss in the previous quarter. However, EBITDA declined 23.53% year over year to Rs 26 crore, with a margin of 5% versus 7.1% in Q3 FY24.
Honasa attributed margin contraction to higher marketing expenses but expects normalization over time. Nine-month revenue reached Rs 1,533 crore, a 5.8% YoY growth, or Rs 1,596 crore with a 10.2% increase after adjusting for inventory correction. Adjusted EBITDA margin was 5.9%, up from 2.7%.
Honasa focused on Project Neev to strengthen offline distribution in the top 50 cities by appointing Tier-1 distributors and moving away from super stockists. While the transition affected short-term finances, the company believes it will enhance market coverage and drive long-term profitability.
Mamaearth, Honasa's flagship brand, increased market share and household penetration, reaching 2.16 lakh FMCG outlets by December 2024, a 22% YoY rise. Its face wash segment gained 114 basis points in market share, while the shampoo segment added 20. The brand is a top online player and No. 3 offline in face wash.
Varun Alagh, CEO of Honasa Consumer Ltd., emphasized the company's focus on innovation, offline penetration, and unique consumer value. Emerging brands like The Derma Co., Aqualogica, BBlunt, and Dr. Sheth’s saw over 30% YoY growth in the nine months ending December 31.
Honasa's focus categories, including face wash, shampoo, serums, moisturizers, sun care, and baby care, grew about 18% after adjusting for the inventory correction. The company plans to expand these categories in the next 3-5 years and expects the moisturizer market to grow from Rs 3,172 crore in 2024 to Rs 5,962 crore by 2027.
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