Honasa Consumer shares skyrocket 12% on reporting 13% YoY revenue growth in Q4

Time of India

23-05-2025

Shares of
Honasa Consumer
, the parent company of
Mamaearth
, shot up 12% in Friday's early trade to their day's high of Rs 308.60 on the BSE after the revenue from operations rose 13% year-on-year (YoY) to Rs 534 crore from Rs 471 crore in the corresponding quarter of the previous financial year.
However, the company reported an 18% YoY decline in consolidated net profit to Rs 25 crore in Q4FY25, compared to Rs 30 crore in the same period last year.
As part of Project 'Neev', the holding company transitioned to a
direct distribution model
in the top 50 cities during the quarter ended September 30, 2024. This involved eliminating the super stockist layer and replacing certain distributors with Tier 1 distributors to better service retailers. Due to this shift, the company recorded a sales return provision of Rs 63.51 crore and recognised inventory/right-to-return assets worth Rs 11.44 crore in that quarter.
By March 31, 2025, the outstanding sales return provision had reduced to Rs 5.20 crore with no corresponding inventory/right-to-return assets, down from Rs 8.95 crore and Rs 1.09 crore respectively, as of December 31, 2024, a company filing said.
The company said that its business continues to grow efficiently, with EBITDA standing at 5.1% in Q4 FY25, reflecting stronger operational performance.
Gross profit margin improved to 70.7% in Q4 FY25, up 76 bps YoY, driven by an improved product mix and operational efficiencies.
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The company claimed that Mamaearth's strategy shift shows green shoots with double-digit YoY growth in key categories across e-commerce and modern trade in Q4 FY25.
Honasa Consumer expanded retail distribution by 26% YoY to 2.36 lakh outlets while younger brands continued their growth momentum with 30%+ YoY growth in FY25.
The Derma Co.
hit Rs 100 crore ARR in offline channels.
The direct distribution-led strategy is strengthening reach, with over 1 lakh unique outlets billed in FY25 and direct distributor contribution surging from 38% in FY24 to 71% in Q4 FY25.
Also read: Q4 results today:
JSW Steel among 200 companies to announce earnings on Friday
Management commentary
"As we scale, our vision remains clear—building Honasa into a future-ready house of brands through disruptive innovation, deeper offline penetration, and consumer-centric offerings. We're not just creating brands that lead today, but shaping the future of India's beauty and personal care landscape,' said Varun Alagh, Chairman and CEO & Co-founder of Honasa Consumer.
(
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