Mamaearth’s parent company, Honasa Consumer, posted operating revenue of ₹534 crore for the January–March 2025 quarter — a 13.3% jump compared to the same period last year. The uptick hints at the company regaining its footing after months of offline channel upheaval that had dented its recent performance.
Despite the revenue rise, profits took a hit. Net income dropped to ₹25 crore, down from ₹30 crore a year earlier. This slip comes even as sales picked up, pointing to lingering costs from a major overhaul of Honasa’s distribution strategy. Dubbed Project Neev, the initiative replaced the traditional wholesale model with direct distribution in India’s 50 largest cities — a shift launched in the second quarter of FY25.
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For the full financial year, Honasa reported operating revenue of ₹2,067 crore — up 7.66% from ₹1,920 crore the previous year. Total income touched ₹2,146 crore. Still, annual net profit fell to ₹73 crore from ₹110 crore in FY24, showing the financial drag from the transition hasn’t fully eased yet.
Back in the July–September quarter, the changes took a sharper toll. Honasa saw revenues drop 7% year-on-year and recorded a ₹19 crore net loss, largely due to a hefty ₹63.5 crore provision for sales returns tied to the new distribution model. The company had phased out indirect wholesalers in favor of billing directly to distributors — a move aimed at tightening control over margins and boosting efficiency.
In a conversation with The Economic Times, Varun Alagh, Co-founder and CEO of Honasa, said the company believes the most disruptive phase is now behind it. “We expect the benefits of this transition to start showing clearly in the next fiscal,” he said.
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The direct distribution model has already doubled Honasa’s offline presence — expanding from 50,000 to 100,000 stores. The company now aims to reach 150,000 retail points in the next year.
