Honasa Consumer Profits Nearly Double

- The 93% surge in net profit to ₹50 crore was driven by a 16% year-over-year revenue increase to ₹602 crore, while total expenses rose by only 8%. This improved profitability is also reflected in the EBITDA margin, which expanded significantly to 10.9% from 5% in the same quarter last year. - While the flagship brand Mamaearth returned to double-digit growth, the company's younger brands like The Derma Co, Aqualogica, and Dr Sheth's collectively grew by over 25% year-on-year. This multi-brand strategy appears to be a key driver of overall growth. - Honasa's advertising expenses as a percentage of revenue decreased to 30.9% from 34.3% a year ago, indicating greater marketing efficiency as the company scales. - The company's offline distribution network has expanded by over 25% year-over-year, now reaching 2.7 lakh outlets, with direct coverage surpassing 1 lakh outlets. This push into offline channels is a strategic move to complement its digital-first origins. - A shift in distribution strategy, known as Project Neev, involved transitioning to direct distributorship in the top 50 cities. This move has started to yield positive results, with the direct distribution network now accounting for 80% of revenue and inventory holdings optimized to about 30 days. - In a strategic move to enter the men's personal care market, Honasa Consumer acquired a 95% stake in BTM Ventures, the parent company of the brand Reginald Men, for ₹195 crore in December 2025. - The company's underlying volume growth stood at a strong 30.2% in the third quarter, indicating robust consumer demand for its products. - Honasa has been actively acquiring brands to build its portfolio, including skincare brand Dr. Sheth's, haircare brand BBlunt, and cosmetic formulation company CosmoGenesis Labs.