The net profit declined to Rs 24.9 crore in the fourth quarter of the fiscal year 2025 (Q4FY25) from Rs 30.5 crore in Q4FY24
Marking a decline in its performance, Honasa Consumer, the parent company of Mamaearth, has seen its net profit dip 18 per cent in the fourth quarter of fiscal year 2025 (Q4FY25). The net profit declined to Rs 24.9 crore in Q4FY25 from Rs 30.5 crore in Q4FY24. The company’s full-year profit fell sharply by 32 per cent to Rs 72.6 crore, down from Rs 110.5 crore in FY24.
In its regulatory filings, the company also noted a sequential decline in Q4 profit, falling from Rs 26 crore in the preceding quarter. Despite the profit dip, Honasa recorded a growth in revenue from operations, reaching Rs 533.5 crore in Q4 FY25, up from Rs 471 crore in Q4 FY24 and Rs 517.5 crore in Q3 FY25. For the full year, consolidated revenue rose 8 per cent to Rs 2,066.9 crore compared to Rs 1,919.9 crore in FY24.
Honasa’s gross profit margin improved to 70.7 per cent in Q4 FY25, an increase of 76 basis points year-on-year. The company attributed this improvement to a better product mix and enhanced operational efficiencies.
Reflecting on the fiscal year, Chairman and CEO Varun Alagh described FY25 as a period of “learnings, focus, and disciplined execution,” highlighting double-digit growth and positive momentum across key brands despite a turbulent year. He noted that Mamaearth’s strategic shift, initiated under Project ‘Neev’ to strengthen offline distribution, had begun yielding results after an initial setback in Q2, when the company reported a loss of Rs 18.5 crore due to inventory corrections.
Project ‘Neev’ was launched as a response to slowing growth in Mamaearth’s core segments and aimed to deepen offline market penetration. Alagh pointed to a ‘double-digit category growth’ in both e-commerce and modern trade channels, supported by media optimisation and brand-building efforts.
While Mamaearth remains Honasa’s flagship brand, younger labels under the company’s umbrella outperformed, registering over 30 per cent YoY growth in FY25. Notably, The Derma Co surpassed Rs 100 crore in annualised revenue run rate (ARR) from offline sales, highlighting the growing contribution of newer brands to the overall business.
Alagh emphasised Honasa’s long-term vision of transforming into a ‘future-ready house of brands,’ with a focus on disruptive innovation, expanding offline reach and consumer-first product development.
Despite the earnings dip, analysts see Honasa’s D2C pivot and focus on omnichannel strategies as necessary steps to sustain long-term growth amid evolving retail dynamics in India’s personal care market.
