Honasa Consumer Limited stands as India's largest digital-first beauty and personal care (BPC) company by revenue in FY24. Incorporated in 2016, the company provides beauty and personal care products through its digital platform. As of CY23, according to Euromonitor, Mamaearth ranks as the third-largest skincare brand in India, cementing its position as a major player in the country's rapidly growing beauty and personal care market.
The company operates through a comprehensive house of brands strategy, with its flagship brand, Mamaearth, built to service a core customer need for safe-to-use, natural products, focusing on developing toxin-free beauty products made with natural ingredients. Since launching Mamaearth in 2016, Honasa has added five new brands to its portfolio, namely The Derma Co., Aqualogica, Ayuga, BBlunt, and Dr. Sheths.
The current market capitalization of Honasa Consumer stands at ₹10,066.058 Million. The company had an EPS of ₹2.2 in the latest financial year, with the most recent quarter showing an EPS of ₹0.8. The PE and PB ratio of Mamaearth stands at 135.60 and 8.37 respectively as of June 24, 2025.
#### Q1 FY25 Results
Honasa Consumer achieved a remarkable 63% increase in consolidated net profit for Q1 FY25, reaching ₹40 Crore, a significant jump from ₹24 Crore reported in the same period last year. Revenue from operations jumped 19.28% to ₹554.06 Crore in Q1 FY25 as against ₹464.49 Crore in the previous year.
#### Q2 FY25 Results
Revenue in Q2 stood at ₹462 Crore reflecting (6.9%) growth, while revenue adjusted for inventory correction was ₹525 Crore with the growth rate of 5.7% YoY. EBITDA margin, reported for Q2 FY25 was (6.6%), with EBITDA Margin adjusted for inventory correction at 4.1%. Profit after tax was ₹(19) Crore for Q2 FY25.
#### Q3 FY25 Results
Honasa reported revenue from operations of ₹517.5 Crore in Q3 FY25, marking a 5.9% year-on-year (YoY) increase from ₹488.2 Crore in Q3 FY24. Honasa posted a net profit of ₹26 Crore in Q3 FY25, unchanged from the same period last year, but a sharp recovery from a loss of ₹24.3 Crore in Q2 FY25.
#### Q4 FY25 Results
Revenue: ₹533.56 Crore as on March 2025 (Q4 FY25). Net Profit: ₹24.98 Crore as on March 2025 (Q4 FY25). Despite a 13.3% revenue rise, net profit fell 18% in Q4 FY25.
- Revenue: ₹1,866 Crore
- Net Profit: ₹64.1 Crore
- Market Cap: ₹9,653 Crore as of latest data.
- Debt Status: Company is almost debt-free.
Honasa Consumer has significantly boosted its distribution network, now reaching nearly 2 lakh FMCG retail outlets across India. This expansion represents a 30% increase from the previous year. The company's shift to a direct distribution model in top cities has improved retailer connections and in-store execution, aligning with its omnichannel strategy.
The company has been implementing "Project Neev" to optimize its distribution model. Over the past few months, they've been implementing Project Neev to optimize their distribution model, taking strategic steps towards transitioning from super-stockists to direct distributors in top 50 cities.
Honasa Consumer is India's largest digital-first beauty and personal care company, with a diverse portfolio of six brands. The company's focus on innovation is evident in its new product launches this quarter. New products contributed around 9% to Q1 FY25 revenue, highlighting Honasa's commitment to staying ahead in the market.
The company's other brands—The Derma Co., Aqualogica, BBlunt, and Dr. Sheth's—posted over 30% YoY growth year-to-date (YTD), demonstrating the success of its house of brands strategy.
Honasa has achieved impressive growth in revenue from operations, with a Compound Annual Growth Rate (CAGR) of 80.14% between FY21 and FY23, increasing their revenue from ₹459.99 Crore in FY21 to ₹1,492.75 Crore in FY23. In comparison, the median revenue CAGR of other BPC companies with available data during the same period was 28%.
The stock of personal care products company listed at ₹330 on the NSE, while the stock opened at par against its issue price of ₹324 on the BSE. Honasa Consumer's stock debuted at an IPO price of ₹324 per share, opening at ₹330 and reaching an intraday high of ₹340.45 on its first trading day.
The company has faced some operational challenges, including a ₹70 Crore hit in the quarter as it revamped its offline business model, shifting from supplying to super stockists to dealing directly with distributors. However, management remains optimistic about the strategic benefits of this transition.
The company intends to open new Mamaearth EBOs (Exclusive Brand Outlets) across a mix of mall stores and high-street outlets in India. The company has also identified expansion opportunities in priority markets such as the United Arab Emirates, Nepal, and Bangladesh, both organically and through strategic acquisitions.
Stock is trading at 8.02 times its book value, indicating a premium valuation. Though the company is reporting repeated profits, it is not paying out dividend currently. Promoter Holding: 35.0% provides adequate management control while maintaining public participation.
The company's strong revenue growth trajectory, innovative product portfolio, expanding distribution network, and leadership position in the digital-first beauty segment make it an interesting proposition for investors looking at the rapidly growing Indian beauty and personal care market.
