Honasa Consumer, the Owner of the Mamaearth brand, is in focus after it reported its Q4 results with muted Net Profit growth, However, the stock hit the 20 percent Upper Circuit mark. Check out why?
With a market capitalisation of Rs. 10,747 Crore, the stock of Honasa Consumer opened at Rs. 282.95, up 2.72 percent from yesterday’s close, and after opening, it made a high of Rs. 330.50, hitting the 20 percent Upper Circuit Mark. Additionally, since listing the Stock has only given a return of 1.92 percent.
Financial & Business Highlights
The company reported a 12.17 percent YoY increase in revenue from Rs. 427 Crore in Q4FY24 to Rs. 479 Crore in Q4FY25. On a QoQ basis, the company reported an increase of 1.69 percent in revenue from Rs. 471 Crore in the previous quarter.
Their Net profit saw a decrease of 14.81 percent YoY from Rs. 27 Crore to Rs. 23 Crore for the same period. On a QoQ basis, the company reported an increase of 4.54 percent in Net profit from Rs. 22 Crore in the previous quarter.
The Company said that their business delivered double-digit growth and strong momentum across their key brands, and their revenue growth was significantly ahead of the broader FMCG market.
Also read: Bulk Deal: Power stock jumps after Goldman Sachs acquires additional 10.93 lakh shares
According to NielsenIQ data, Mamaearth has strengthened its position in key categories and is now among the top 5 brands in the face wash market. Our newer brands have also shown strong growth, with over 30 percent year-on-year increase in FY25.
The Derma Co. has achieved an Annual Recurring Revenue (ARR) of over Rs. 100 crore from offline channels alone, while continuing to be a market leader on major online platforms.
The direct distribution strategy is helping the company reach more customers, with products now being sold in over 1 lakh unique outlets in FY25. The share of sales coming from direct distributors has grown significantly—from 38 percent in FY24 to 71 percent in Q4 FY25—showing strong progress in expanding and strengthening its distribution network.
These very strong Operational reasons can be attributed to the Stock hitting 20 percent Upper Circuit market despite muted Net Profit Growth on a QoQ basis, and a Net Profit fall on a YoY basis.
About the Company
Honasa Consumer Ltd., founded in 2016 by Varun and Ghazal Alagh & Headquartered in Gurgaon, is India’s first digital-first beauty and personal care company, best known for its flagship brand, Mamaearth. Initially launched to offer toxin-free baby care products, the company has expanded its portfolio to include skincare and haircare offerings for all age groups through brands like The Derma Co., Aqualogica, Dr. Sheth’s, BBlunt, and Staze.
Honasa operates with a strong direct-to-consumer (D2C) model complemented by an expanding offline retail presence. The company emphasises sustainability, using cruelty-free and eco-conscious practices
Written By Abhishek Das
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
