Mamaearth’s Comeback Story: From Red to Green
After a few challenging quarters, Honasa Consumer Ltd., the parent company of Mamaearth, is back on top — and firmly in profit.
For the quarter ending September 30, 2025 (Q2 FY26), the Gurugram-based beauty and personal care giant reported a net profit of Rs 39 crore, a massive turnaround from a loss of Rs 18.56 crore in the same period last year.
CEO and Co-founder Varun Alagh summed it up perfectly: “Mamaearth is back in green.”
Driven by innovation, smart brand-building, and an expanding product portfolio, the company is proving that its multi-brand strategy is paying off.
Strong Financials and Steady Growth
Honasa’s revenue from operations jumped 22.5% year-on-year to Rs 566 crore — a clear sign of healthy consumer demand and effective brand execution.
The company’s EBITDA stood at Rs 48 crore, maintaining an 8.4% margin, while gross profit hit 71.9%, supported by better cost control and operational efficiency.
This performance comes as a relief to investors and industry watchers who had been eyeing the brand’s path to profitability after earlier setbacks.
For the first half of FY26, Honasa’s total revenue reached Rs 1,133 crore, marking a 12% rise over last year. Meanwhile, profit surged 3.7 times to Rs 80.5 crore, proving that its turnaround is not just a one-off.
Mamaearth’s Winning Streak Continues
Mamaearth, Honasa’s flagship brand, showed major momentum this quarter.
According to NielsenIQ, the brand gained 123 basis points in market share in the face cleanser segment, a competitive and fast-growing category in India’s beauty market.
Even more impressive, the Rice Facewash joined Mamaearth’s Rs 100 crore annualised revenue club, standing alongside fan-favorite ranges like Ubtan and Vitamin C.
This success reaffirms Mamaearth’s dominance in the natural skincare space — a segment where it continues to lead with innovation and consumer trust.
The Derma Co. and Emerging Brands Fuel Expansion
Honasa’s other major brand, The Derma Co., also had a stellar quarter. It crossed Rs 750 crore in annual recurring revenue (ARR) and was recognized by Euromonitor as India’s No. 1 sunscreen brand for 2024 — a major win in the growing dermacosmetics market.
Meanwhile, Honasa’s emerging brands — including Aqualogica, Ayuga, and BBlunt — grew over 20% year-on-year, proving that the company’s “House of Brands” strategy is working.
Unit volume growth stood at 16.7%, showing robust consumer demand across categories.
Offline growth was equally strong, with general trade distribution expanding 35% year-on-year, boosting the brand’s retail footprint across India.
Innovation: The Secret Behind the Success
Innovation remains the backbone of Honasa’s growth story.
In Q2, the company launched Luminéve, its first prestige skincare brand, exclusively on Nykaa, marking a bold entry into the luxury beauty market.
It also made a strategic investment in Fang Oral Care, a premium oral wellness brand, acquiring a 25% stake for Rs 10 crore — signaling Honasa’s ambition to diversify beyond skincare and haircare.
According to Alagh, these moves are part of Honasa’s plan to build a “House of Purposeful Brands” — each focused on solving specific consumer needs while staying true to sustainable and ethical values.
Efficient Spending and Smart Cost Management
Despite rising input costs, Honasa managed to keep its overall expenses under control.
- Procurement costs increased slightly to Rs 159 crore (32% of total expenses).
- Employee benefits rose to Rs 60 crore, reflecting investment in talent.
- Marketing, legal, and overhead costs actually declined 9% year-on-year, helping keep total expenses stable at Rs 505 crore.
This balance of growth and efficiency has allowed Honasa to improve profitability without compromising on innovation or brand-building.
CEO Varun Alagh on the Road Ahead
In a statement, Chairman and CEO Varun Alagh said the latest results highlight the strength of Honasa’s long-term strategy.
“Our performance reflects the strength and consistency of our growth playbook. We will continue to scale our House of Purposeful Brands through innovation, operational discipline, and category expansion,” Alagh said.
He added that the company remains committed to sustainable, purposeful growth, focusing on new launches and deepening distribution across both online and offline channels.
What This Means for the Beauty Market
Honasa’s comeback underscores the resilience of India’s homegrown beauty and personal care brands.
With consumers increasingly choosing purpose-driven, ingredient-conscious products, Mamaearth and its sister brands are well-positioned to capture even more market share — both in India and beyond.
As Honasa diversifies into premium skincare and oral wellness, its next challenge will be scaling these new verticals without diluting brand authenticity.
But one thing is clear: after turning profitable again, Mamaearth is not just back in green — it’s back in the game.
