Honasa Consumer (HONASA) Q4 24/25 earnings summary

Executive summary

• Achieved 13.3% YoY revenue growth in Q4, with FY25 consolidated revenue at INR 20,669.49 million (up 7.7% YoY), and gross profit margin improving to 70.3%.

• Focused on premiumization in hair care and core categories, with strategic investments in distribution, product innovation, and R&D, including the acquisition of Cosmogenesis.

• Mamaearth's focus categories (face wash, shampoo, sunscreen, moisturizer, baby) now contribute ~70% of brand sales, showing double-digit growth in e-commerce and modern trade.

• Young brands (BBLUNT, Aqualogica, Dr. Sheth's, STAZE, Derma Co) grew 30%+ YoY, with Derma Co achieving INR 100 crore ARR in offline channels.

• Audited standalone and consolidated financial results for FY25 were approved, with unmodified audit opinions issued.

Financial highlights

• Q4 FY25 revenue from operations: INR 534 crore (up 13% YoY); gross profit margin: 70.7%; EBITDA: INR 27 crore (5.1% margin); PAT: INR 25 crore (4.7% margin).

• FY25 EBITDA: INR 69 crore (3.3% margin); PAT: INR 73 crore (3.5% margin); free cash at year-end: INR 82 crore; cash and bank balances at March 31, 2025: INR 331 crore.

• Standalone revenue from operations for FY25 was Rs 18,657.07 million; standalone net profit was Rs 640.83 million.

• Working capital improved to negative 24 days, with cash generation of INR 74 crore in Q4.

• Underlying volume growth (UVG) for Q4 FY25: 21.2%; for FY25: 13.2%.

Outlook and guidance

• Targeting double-digit value growth and 250 bps EBITDA margin improvement in FY26, aiming to return to FY24 EBITDA levels by year-end.

• Premiumization trends in hair and skin care, and growth in suncare and face serums, are expected to drive future growth.

• Project 'Neev' transition to a direct distribution model across top 50 cities is expected to enhance future distribution efficiency.