Mamaearth-parent Honasa Consumer ups ad expenses by 15% to hit Rs 184 crore in Q4FY25

Honasa Consumer Ltd., the parent company of skincare brand Mamaearth, reported a decline in fourth-quarter and full-year profits for the fiscal year 2025, even as advertising expenditures reached record levels.

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In its quarterly earnings released Thursday, the company disclosed a net profit of Rs25 crore for the three months ended March 31, down 17.7 percent from Rs30.4 crore in the same quarter a year earlier. For the full fiscal year, net profit fell 34.5 percent to Rs72.6 crore from Rs110.5 crore in FY24.

The drop in profitability came despite a significant increase in marketing outlays. Advertising expenses for the fourth quarter rose to Rs184 crore, up from Rs160 crore a year earlier. Annual advertising spending jumped 12.5 percent to Rs744 crore from Rs661 crore in the previous fiscal year.

Mamaearth parent Honasa Consumer's ad spend rises 6.6% to Rs 177 crore in Q3

Overall revenue continued to rise, with consolidated revenue from operations climbing 13.16 percent year-over-year to Rs533.56 crore in the March quarter, compared with Rs471 crore a year earlier. Despite the revenue growth, earnings before interest, tax, depreciation and amortization (EBITDA) fell to Rs27 crore from Rs33 crore, with the EBITDA margin narrowing to 5.1 percent.

Varun Alagh, Chairman, CEO and Co-founder of Honasa Consumer, described FY25 as a year marked by “learning, focus and disciplined execution.” He noted that the company’s recent strategic pivot is beginning to yield results, particularly in the digital and modern trade channels, where several core product categories—including facewash, shampoo, sunscreen, moisturizers, and baby care items - posted double-digit growth.

Alagh outlined plans to evolve Honasa into a “future-ready house of brands,” emphasizing innovation, increased offline reach, and a sharper focus on consumer-driven products. According to the company, newer brands under the Honasa umbrella grew by more than 30 percent year-over-year in FY25.

Among them, The Derma Co. achieved a notable milestone, surpassing ₹100 crore in annual recurring revenue from offline sales alone.

Honasa also reported progress in expanding its retail footprint. The company said its direct distribution strategy contributed to wider market penetration, with over 100,000 unique outlets billed during the fiscal year. The share of revenue from direct distributors rose sharply, accounting for 71 percent of total in the fourth quarter, compared with 38 percent a year earlier.