Mamaearth parent Honasa Consumer on Wednesday reported a consolidated net profit of Rs 26 crore during the October-December quarter, beating Street estimates of Rs 17 crore. 

The company’s net profit was at Rs 25.9 crore in the same quarter in FY24. 

Revenue from operations was up 6% to Rs 517.5 crore, compared to Rs 488.2 crore a year ago. The Bloomberg consensus estimate had pegged the revenue at Rs 515 crore. 

The company, which also operates Aqualogica, The Derma Co, and Dr Sheth’s, reported an Ebitda of Rs 26 crore, higher than the estimates of Rs 19 crore. However, it was 24.1% lower year-on-year. 

The Ebitda margin fell from 7% to 5%, mainly due to higher marketing spends. 

The recovery in net profit was steeper sequentially as it had reported a loss of Rs 19 crore in Q2FY25. 

Last year, Honasa undertook a transition exercise for its general trade strategy. In the top 50 cities, it moved to a direct distribution model, phasing out the reliance on super stockists. 

Due to this, the company’s finances took a beating in the July-September quarter, with a 7% fall in operating revenue. 

In an analysts’ call, Honasa CEO Varun Alagh said that the company is scaling up its new distribution system. He added that they are now over the previous quarter’s inventory correction.

Alagh further said the company’s margins will continue to be under pressure till Q1FY26 and will start normalising after that. “Mamaearth continued to expand its market share and household penetration as we refine our playbooks to shape its future growth trajectory,” he added.

During the quarter, it increased its distribution by 22% to 216,814 FMCG retail outlets. 

The company is also focusing on bringing significant growth from its key categories of face wash, shampoo, serums, moisturiser, sun care, and baby care in the next 3-5 years. 

Alagh also said the company is aiming to take its quick commerce operations higher than e-commerce. The channel now accounts for 7-8% of its total sales compared to 4-5% in the previous quarter. 

On Wednesday, the company’s share closed 1.92% up at Rs 204.75 apiece on the BSE.