Honasa Consumer, the parent of beauty and personal care brand Mamaearth, swung to a net profit of Rs 39 crore in the July–September quarter, compared to a loss of Rs 19 crore a year ago, as revenue improved and expenses stayed in check.
Revenue from operations rose 16.5% year-on-year to Rs 538 crore in Q2, while total expenses remained largely stable at Rs 505 crore. The company said it took a Rs 28 crore hit to revenue due to a change in settlement by Flipkart — where logistics and fulfilment costs are now adjusted in revenue reporting—though this had no impact on the bottom line.
Honasa is witnessing a steady recovery in performance after grappling with distribution challenges last year during its transition from a super stockist model to direct distributorship in its top 50 cities. The move, aimed at boosting offline sales as post-pandemic online demand began easing, is now bearing fruit.
Direct distributors accounted for nearly 80% of total revenue in Q2, compared to 33% two years ago. The shift helped improve EBITDA margins from a negative 6.6% in the year-ago quarter to a positive 8.9% in Q2 FY26.
Founded seven years ago as a toxin-free baby care brand, Mamaearth has since diversified into skin, hair, and body care products. Honasa’s portfolio now includes The Derma Co, Aqualogica, Dr Sheth’s, BBlunt, and its colour cosmetics line Staze 9to9, though Mamaearth continues to contribute the bulk of revenues.
Within Mamaearth, the company has narrowed its focus to five key categories—shampoo, face serum, suncare, moisturiser, and baby care—after previously operating across as many as 24 segments. The sharper focus, management said, is aimed at improving efficiency and resource allocation.
Honasa is also expanding into new segments. Its first premium skincare brand, Luminéve, was launched exclusively on Nykaa. “We’ve entered the premium skincare space with a focus on night skincare and deep repair powered by global ingredient science,” said Varun Alagh, Chairman, CEO, and co-founder.
Additionally, the company has invested Rs 10 crore in Fang, an oral care brand specialising in teeth whitening and oral wellness, for a significant minority stake. The deal is expected to close in the next four to five weeks.