Mamaearth Q4: Profit Falls 18% to INR 25 Cr

Mamaearth parent Honasa Consumer’s consolidated net profit declined 18% to INR 25 Cr from INR 30.4 Cr in Q4 FY24, as margins fell. On a quarter-on-quarter basis, the profit declined 3.8% from INR 26 Cr.

The D2C brand’s revenue from operations rose 13.3% to INR 533.6 Cr during the quarter under review from INR 471 Cr in the same period last year. Sequentially, it grew 31% from INR 517.5 Cr. 

The company’s EBITDA margin during the period under review declined 1.9 percentage points to 5.1% from 7% in Q4 FY24. 

For the full fiscal year FY25, net profit declined 34.2% to INR 72.7 Cr from INR 110.5 Cr in the previous year. Operating revenue grew 7.6% to INR 2,066.9 Cr in FY25 from INR 1,919.9 Cr in the previous year.

For the full fiscal, EBITDA margin declined 3.8 percentage points to 3.3% from 7.1% in FY24. 

Honasa’s expenses in Q4 FY25 grew 15.8% to INR 522.1 Cr from INR 450.8 Cr in the year-ago period. Meanwhile, sequentially it increased 2.9% from INR 507.3 Cr. 

Employee benefit expenses increased to INR 48 Cr from INR 45 Cr in the previous year’s quarter, while advertising expenses grew 15% to INR 184 Cr from INR 160 Cr in Q4 FY24. 

In its investor presentation, Honasa said it has turned to Agentic AI workflows across its operations. For instance, Mamaearth’s AI-based Purchase Assistant assists shoppers with curated product recommendations, while the company also uses in-house AI-based “social listening” tools to track consumer sentiment and identify emerging trends. 

Meanwhile, Honasa’s brand, The Derma Co, reached INR 100 Cr annual recurring revenue (ARR) from offline channels as of March 2025. This growth was supported by strong in-store visibility and merchandising across pharmacies and general trade outlets. 

Updates On Honasa’s Project Neev

Honasa said it grew its offline distribution in FY25, with 1.2 Lakh unique outlets billed during the year as against 45,000 in Q1 FY25.

The company said it has nearly completed its transition to its new direct distribution model across India’s top 50 cities. This shift was part of an internal restructuring under ‘Project Neev’, aimed at simplifying the company’s general trade operations and making them more efficient for future growth. 

The groundwork for Project Neev began in mid-2024, when Honasa decided to do away with the old multi-layered distribution setup. Until then, the company relied on a network of super stockists and smaller distributors. 

However, this model often caused delays, uneven stock availability and weak visibility in the supply chain. Project Neev was launched to address these issues by removing the super stockist layer and replacing certain underperforming distributors with high-quality, tier-I partners who could better serve retailers directly, Honasa said.

The company’s direct distributor contribution rose to 71% in Q4 FY25 from 38% in Q4 FY24. 

Shares of Honasa ended today’s trading session 1.9% higher at INR 275.45 on the BSE.