Mamaearth parent ups marketing spend to Rs 744 crore in FY25; Eyes Rs 5,000 crore ARR milestone
Honasa invested heavily in advertising and publicity for its younger brands, including The Derma Co, Aqualogica, Dr. Sheth’s, BBlunt, and Staze.
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Honasa Consumer Ltd, the parent company of the Mamaearth skin and personal care brand, ramped up its advertising and marketing expenditure in fiscal year 2025 but reported a significant drop in profit. The company’s ad spend rose 12.5% in absolute terms to Rs 743.65 crore--36% of revenue in FY25--compared to Rs 661.28 crore in FY24. Honasa invested heavily in advertising and publicity for its younger brands, including The Derma Co, Aqualogica, Dr. Sheth’s, BBlunt, and Staze.
The company is channeling capital into digital media to target consumers with diverse niche interests. It is also leveraging the rise of e-commerce and quick commerce as distribution channels, enabling brands to scale faster and reach wider audiences than before.
Revenue from operations increased to Rs 2,067 crore in FY25, compared to Rs 1,919 crore in FY24--a 7.66% year-on-year rise. According to the company, this growth was primarily driven by a 7.7% increase in product sales. Honasa also delivered an underlying volume growth of 13.2% in FY25, driven by the scaling up of its younger brands while Mamaearth itself underwent a transition.
However, profit after tax fell sharply, dropping 34.24% year-on-year to Rs 72.6 crore in FY25 from Rs 110 crore in FY24.
Co-founders Varun Alagh and Ghazal Alagh said, “Honasa will be a national market leader in at least two skin care categories and will be among the top three by market share in at least two more.” They noted that Mamaearth has been the fastest brand to achieve Rs 1,000 crore in revenue and added, “It will also be the fastest to hit Rs 2,000 crore in topline revenue, with almost 60% contribution coming from offline channels.”
They further stated that Honasa expects to add one more Rs 1,000 crore brand with The Derma Co, along with two additional Rs 500 crore brands to its portfolio.
On strengthening its marketing push, the digital-first company said, “We will have the edgiest marketing and content engines in the industry, with best-in-class CTRs (click-through rates) and VTRs (view-through rates).”
In the FY25 annual report, the Alagh couple wrote, “We will become the fastest FMCG company to reach Rs 5,000 crore ARR. Many of our strategic bets are playing out strongly—we identified and capitalized on the active ingredients trend in skin care earlier than anyone else with The Derma Co and the acquisition of Dr. Sheth’s.”
