Mamaearth parent spends Rs 206 crore on ads in Q1 FY26, utilises Rs 127 crore of IPO funds for brand building

Honasa Consumer Ltd, parent firm of personal care brand Mamaearth, marginally increased its advertisement expenditure during the first quarter of fiscal year 2026. According to the company's earnings call held on Tuesday, Honasa spent Rs 206 crore on ads and promotional activities in Q1 FY26, compared to Rs 200 crore in the same period in FY25.

Honasa, which completed its Initial Public Offering (IPO) during the financial year ended March 31, 2024, had earmarked Rs 182 crore for advertisement expenses from the total net proceeds of Rs 350 crore. The maker of other skincare brands such as Aqualogica and The Derma spent Rs 127 crore on ads to enhance awareness and brands visibility as of June 30, 2025.

Currently, Honasa has spent 45% of the total net proceeds on other activities as well such as, Capital expenditure incurred by the company for setting up new EBOs (Rs 6.3 crore), Investment in subsidiary, BBlunt for setting up new salons (Rs 6.3 crore), and General corporate purposes and unidentified inorganic acquisition (Rs 51.8 crore).

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Meanwhile, the beauty and personal care House of Brands delivered its highest-ever quarterly revenue of Rs 595 crore in Q1 FY26 and a profit of Rs 41 crore, driven by a sequential improvement in earnings before interest, taxes, depreciation, and amortisation margin to 7.7%.

According to the company, its focus categories posted double-digit growth year-over-year during the quarter. Besides, younger brands grew over 20% YoY.

"The Derma Co. sustained strong momentum, with face cleansers becoming its third Rs 100 crore+ ARR category after Serums and Sunscreens," the company added.

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"Our innovation pipeline remains strong, with launches rooted in proven efficacy and consumer-desired benefits. Our offline distribution remains on a positive trajectory, further enhancing our reach and visibility," Varun Alagh, Chairman and CEO & Co-founder, Honasa Consumer, said.

According to NielsenIQ data, Mamaearth’s retail footprint expanded to 2,40,113 FMCG outlets across India as of June 2025, marking a 20% YoY increase in distribution.

Alagh said the company is focusing on select, sharply defined category segments within its core categories by driving awareness-led brand building, and executing an ‘always-on’ media strategy.