Mamaearth Q3 Results: Profits Soar 93% YoY to Rs 50 Crore, Revenue Up 16%
Mamaearth’s parent company, Honasa Consumer, reported impressive Q3 results on Thursday, showcasing significant growth. The consolidated net profit after tax (PAT) soared by 93% year-over-year, reaching Rs 50 crore, compared to Rs 26 crore in the corresponding period last year.
Key Highlights from Mamaearth’s Q3 Results:
– Revenue Growth:
– Revenue from operations totaled Rs 602 crore for Q3 FY26, marking a 16% increase from Rs 518 crore in the same period of FY26.
– On a like-for-like (LFL) basis, revenue reached an impressive Rs 630 crore, reflecting a 22% year-over-year increase and setting a new record for the company.
– Quarterly Performance:
– Sequential growth was notable, with the PAT increasing by 28% from Rs 39 crore in Q2 FY26.
– The total revenue saw a 12% quarter-on-quarter uptick compared to Rs 538 crore.
– Transition to Direct Distribution:
– In the financial year ending March 31, 2025, Mamaearth implemented Project ‘Neev,’ shifting to a direct distribution model across the top 50 cities.
– This restructuring aimed to enhance service levels by replacing lower-tier distributors with higher-quality Tier 1 distributors.
– Sales Returns and Inventory Management:
– The company reported provisions for sales returns of Rs 63.51 crore for FY25, along with a corresponding inventory/right-to-return asset of Rs 11 crore.
– As of December 31, 2025, the outstanding provision for sales returns from this transition stood at Rs 3.41 million, ensuring efficient inventory management.
– Brand Growth:
– Emerging brands within the portfolio experienced a remarkable growth rate exceeding 25%.
– The Derma Co. maintained strong momentum with a positive EBITDA profile while optimizing growth.
– Offline Expansion:
– Direct outlet coverage surpassed 100,000 locations, and overall distribution expanded by over 25% year-over-year, reaching 270,000 outlets.
Continued Innovation and Market Competitiveness
Mamaearth remains committed to innovation, with successful products like the Mamaearth Rice Face Wash and BBlunt Intense Moisture Shampoo showing significant performance against both national and international competitors.
Management Insights
CIO & Co-founder Ghazal Alagh commented on the results, emphasizing the company’s commitment to innovation and quality. “Our focus remains clear: to strengthen fundamentals and invest in superior science and execution. We aim to build Honasa as a House of Purposeful Brands focused on sustainable, long-term growth.”
Conclusion
Mamaearth’s Q3 results reflect its robust growth strategy, effective operational restructuring, and commitment to product excellence. As the brand continues to expand its reach and innovate, it’s well-positioned for future success in the competitive market. The significant 93% increase in PAT and the rise in revenue signal a promising trajectory for Mamaearth, reinforcing its status as a leader in the consumer health and wellness sector.