Honasa Consumer Ltd., the parent company of Mamaearth, saw its shares jump sharply by over 12 percent on May 24, after posting a healthy revenue growth in the March 2025 quarter. The stock surged to an intraday high of Rs 314 on NSE, recording a gain of 14.12 percent, after opening with a 3.58 percent rise. This marks the second straight session of gains, with the stock climbing over 15 percent in the last two days.
For the fourth quarter of FY2025, Honasa reported a 13 percent year-on-year rise in revenue from operations, reaching Rs 533.5 crore. This is a notable improvement compared to Rs 471 crore in the same period last year and Rs 517.5 crore in the December 2024 quarter. This growth comes at a time when many FMCG players have shown only low single-digit revenue increases, signaling that Honasa is bouncing back strongly after undergoing a major offline distribution restructuring.
The restructuring as part of the company’s Project ‘Neev’ included direct-to-consumer (D2C) model shifting and impacted profits earlier as well as necessitated inventory realignment. Consequently, Honasa reported Q2 FY25 net loss of Rs 18.5 crore.
Though the firm went back to the black in Q4 FY25 with a Rs 24.9 crore net profit, the same remains 18 percent below Rs 30.5 crore achieved in the corresponding period the previous year. This also declined slightly from Rs 26 crore the preceding period. Nevertheless, the revenue growth shows the new distribution strategy initiated by the company beginning to take the effect it intended to have.
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Source: Moneycontrol
News Desk
