Honasa Consumer Ltd, the parent company of the prominent D2C brand MamaEarth, announced its Q2 FY25 financial results, revealing a dip in revenue and a shift to losses for the quarter.
The company reported a revenue of ₹462 crore in Q2 FY25, reflecting a 6.9% decline from ₹496 crore in Q2 FY24, as per its consolidated financial data shared via the National Stock Exchange (NSE).
MamaEarth’s revenue was entirely driven by sales of beauty, personal care, and products in the skin, hair, and baby care segments. Additionally, Honasa generated ₹20 crore from non-operating activities, bringing its total revenue for Q2 FY25 to ₹482 crore.
On the expenditure side, product procurement accounted for 31.16% of total costs, reducing by 4.6% to ₹144 crore compared to ₹151 crore in Q2 FY24. However, an increase in employee benefits, marketing, legal, rent, and other operational expenses pushed total expenditure up by 9.1%, reaching ₹506 crore in Q2 FY25, up from ₹464 crore in Q2 FY24.
This combination of reduced revenue and rising costs resulted in Honasa posting a net loss of ₹18.6 crore in Q2 FY25, contrasting sharply with the ₹29.4 crore profit it achieved during Q2 FY24. In Q1 FY25, the company had registered record-high profits of ₹40 crore.
Despite the financial setbacks, Honasa’s stock showed resilience, with its share price rising by 3.77% to ₹378. The company’s market capitalization currently stands at ₹12,278 crore, equivalent to $1.46 billion.