As margins decreased, the consolidated net profit of Mamaearth parent company Honasa Consumer fell by 18% to INR 25 crore from INR 30.4 crore in Q4 FY24.  The profit fell from INR 26 Cr. by 3.8% when comparing quarters.

During the quarter being examined, the D2C brand’s operational revenue grew to INR 533.6 Cr from INR 471 Cr in the same quarter of the previous year, representing a rise of 13.3%.  It grew sequentially by 31% from INR 517.5 Cr.

During the period under review, the company’s EBITDA margin fell from 7% in Q4 FY24 to 5.1%, a decrease of 1.9 percentage points.

For the entire fiscal year FY25, net profit decreased by 34.2%, falling to INR 72.7 Cr from the previous year’s INR 110.5 Cr. In FY25, operating revenue increased by 6% to reach INR 2,066.9 Cr, up from INR 1,919.9 Cr in the prior year.

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

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In the year-ago period, Honasa’s expenses in Q4 FY25 increased by 15.8%, reaching INR 522.1 Cr compared to INR 450.8 Cr.  Meanwhile, on a sequential basis it rose by 2.9% from INR 507.3 Cr.

In the previous year’s quarter, employee benefit expenses rose to INR 48 Cr from INR 45 Cr, and advertising expenses increased by 15% to INR 184 Cr from INR 160 Cr in Q4 FY24.

Honasa stated in its investor presentation that it has adopted Agentic AI workflows throughout its operations.  As an example, Mamaearth provides an AI-driven Purchase Assistant that offers tailored product suggestions to customers.

The company also employs proprietary AI-driven “social listening” tools to monitor consumer sentiment and detect new trends.

As of March 2025, Honasa’s brand, the Derma Co, achieved an annual recurring revenue (ARR) of INR 100 Cr from offline channels. This growth was bolstered by effective in-store visibility and merchandising strategies in pharmacies and general trade outlets.

Honasa stated that it expanded its offline distribution in FY25, with 1.2 lakh unique outlets billed during the year compared to 45,000 in Q1 FY25.

The firm announced that it has almost finished transitioning to its new direct distribution model in the top 50 cities of India. As part of an internal restructuring initiative called ‘Project Neev,’ this shift was implemented to simplify and enhance the efficiency of the company’s general trade operations in support of future growth.

Project Neev was initiated in mid-2024, when Honasa opted to eliminate the previous multi-layered distribution system. Up to that point, the company depended 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. As stated by Honasa, Project Neev was initiated to tackle these problems by eliminating the super stockist layer and swapping out certain distributors that were not performing well for high-quality, tier-I partners who could provide more effective direct service to retailers.

In Q4 FY25, the direct distributor contribution of the company increased to 71% from 38% in Q4 FY24.

On the BSE, shares of Honasa concluded today’s trading session at INR 275.45, marking a rise of 1.9%.