Economic Overview
Global Economic Outlook
GDP Growth 2025 (%)
Global economic growth remains moderate and uneven across regions, with a 2025 global real GDP growth estimate of 2.8%. Advanced economies are seeing slower momentum: the US is projected to grow at 1.8% in 2025, supported by a strong labour market but weighed down by trade frictions and policy uncertainty. The Euro Area faces even more muted growth at 1.0% in 2025, constrained by weak consumer sentiment and elevated energy costs. In contrast, emerging markets are driving global momentum.
India as a Fastest-growing Major Economy
India is expected to grow at 6.5% in 2025, driven by robust domestic consumption and structural reforms, while China is forecasted to grow at 4.0% in 2025, hindered by demographic pressures and structural inefficiencies. Other Asian economies like Vietnam, Indonesia, and the Philippines continue to exhibit steady, consumption-led growth amid broader global headwinds.
India will Continue to be the Fastest-growing Economy
Y/Y Percentage Change in Real GDP 2023-26F
1
LatAm (Latin America) includes Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Mexico, Panama, Paraguay, Peru and Uruguay.2
ASEAN (Association of Southeast Asian Nations) includes Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.Source: ET analysis
3
MENA (Middle East, North Africa) includes Algeria, Bahrain, Egypt, Iraq, Israel, Kuwait, Morocco, Oman, Qatar, Saudi Arabia and the UAE.4
SSA (Sub-Saharan Africa) includes Angola, Botswana, Ghana, Kenya, Mauritius, Mozambique, Namibia, Nigeria, Seychelles, South Africa, Tanzania, Uganda, Zambia and Zimbabwe.Advanced economies are progressing towards inflation targets, while emerging markets show inconsistent disinflation. Inflation trends are gradually easing, with global inflation projected to decline to 2.9% in 2025 and further to 2.8% in 2026. The slowdown from 5.9% in 2023 to 3.0% in 2024 has been driven by falling commodity prices and tighter monetary policies. However, core services inflation remains sticky, particularly in developed markets, limiting the pace of monetary easing. While advanced economies are slowly approaching inflation targets, emerging markets show mixed progress, making policy responses more complex and country-specific. Global trade is expected to grow modestly at 1.7% in 2025, constrained by supply chain disruptions, weak external demand, and increasing trade fragmentation. Manufacturing activity has slowed in Europe and parts of Asia, reflecting the impact of geopolitical tensions and tighter financial conditions. Emerging markets, particularly in Asia, continue to drive global growth, led by strong domestic demand in India, China, Vietnam, Indonesia, and the Philippines. These markets are benefiting from structural reforms and consumption-driven growth, even amid inflationary pressures and external trade uncertainties. Heightened geopolitical risks and tightening financial conditions are increasing macroeconomic vulnerabilities, underscoring the growing need for strategic resilience in global supply chains.
Within this evolving macroeconomic backdrop, the Beauty and Personal Care (BPC) sector, alongside broader FMCG categories, is showing resilience and adaptability.
Structural tailwinds such as demographic shifts, rising urban consumption, and digital acceleration are fuelling demand, particularly in emerging markets. India, China, Vietnam, and Indonesia continue to stand out as consumption-driven economies. Amid these shifts, BPC and FMCG brands are leaning into consumer-focused innovation, agile operating models, and supply chain resilience to navigate volatility and capture long-term growth opportunities.
India in the Global Economic Context
Amid a global slowdown, India continues to stand out as a key growth engine. The IMF projects global GDP growth to ease from 3.2% in 2024 to 2.8% in 2025 and 3.1%.
In contrast, Indias economy remains resilient, driven by robust domestic demand, infrastructure push, and digital investments. Provisional estimated GDP growth in FY 24-25 stood at 6.5%.
Looking ahead, the IMF expects India to grow at 6.2% in FY 2526 and 6.3% in FY 2627, supported by rural and private consumption, easing inflation, and continued policy support. India remains the fastest-growing major economy, well above the global average.
This positive macroeconomic environment provides a strong foundation for Honasa Consumer, enabling growth in demand, premiumisation, and digital engagement across the FMCG sector, including BPC, in alignment with our long-term value creation strategy.
6.2%
Projected GDP growth of India in FY 25-26
India Remains the Fastest-growing Major Economy Well Above the Global Average
Global vs India GDP Growth Forecast
Indian Economy
India remains on a strong growth trajectory, reaffirming its position as the fastest-growing major economy.
This momentum is underpinned by structural reforms, resilient domestic demand, and strategic investments in infrastructure and manufacturing, supported by flagship initiatives such as the Production Linked Incentive (PLI) scheme and PM GatiShakti. These efforts are driving employment, improving connectivity, and deepening market access, particularly across semi-urban and rural regions, critical to the growth of the Retail and FMCG sectors.
Private consumption in India grew by ~7.2% in FY 24-25, driven by strong rural demand and higher spending on durables and FMCG. Anticipated tax reforms and monetary easing in FY 25-26 are expected to further boost disposable incomes, with rise in Tier-1 consumption as well.
Headline CPI inflation is forecast to ease from 4.8% in FY 24-25 to 4.2% in FY 25-26, driven by stabilising food prices, supporting real income growth and fuelling mass and mid-premium FMCG consumption. Despite external trade pressures and a marginal rise in the current account deficit to 1.0% of GDP, domestic demand remains robust.
Easing CPI Inflation in India
CPI Inflation (%)
Rising rural incomes, increasing female workforce participation and expanding digital infrastructure are reshaping consumption patterns in India. This is further supported by a well-capitalised banking system, easing credit conditions, and growing formalisation of retail channels. Importantly, consumer price inflation has remained benign, dropping from 3.3% in March 2025 to 3.2% in April 2025 (combined CPI). These enabling macro and structural trends are driving robust growth in FMCG, particularly in the beauty and personal care segment, through deeper penetration, premiumisation, and stronger consumer-brand engagement.
Indian Retail Market Overview
Consumption Growth Driving Retail Acceleration
India is solidifying its position as a leading retail investment destination, driven by its large, young consumer base, rising incomes, rapid urbanisation, and digital growth. With the worlds second-largest population and a growing middle class of over 158 Million households, India offers significant long-term growth potential in organised retail, particularly in sectors like beauty & personal care, apparel and electronics.
Indias Consumption Growth Outpaces other Economics
India to Witness the Highest Growth in Consumption between 2024-2034F
Current Consumption ($ Tn)
7.2%
The retail market is projected to triple from 2019 levels, reaching around $2.5 Trillion by 2035, according to IBEF and Redseer. FMCG (inc. beauty & personal care) makes up about 19% of total retail sales while beauty & personal care constitutes 2%, expanding due to rising consumer aspirations. The industry is shifting from traditional retail to organised and digital commerce, with traditional retail holding an 81% market share, while organised retail and e-commerce accounted for 12% and 8%, respectively.
Retail in India has Grown in Line with Consumption
Indian Retail Market Size ($Bn)1
Increased Discretionary Spending
Growth of lifestyle and 10%+ indulgence categories
Supply Side Investments
Increase in share of 2x organised retail (2014-2024)
Enhanced Access and Value
Growth of online 30%+ (2014-2024)
2019 2024
1. Retail size market includes size of categories like Grocery, Electronics, Fashion, jewellery All years referred represent Calendar Year. Source: Euromonitor, BCG Analysis
E-commerce Market Expands Strongly $350Bn
The e-commerce sector is expected to surpass $350 Billion by 2030, growing at a CAGR of 23%, supported by better logistics, payment systems Expected E-commerce and consumer trust. Sector Value by 2030
India is Projected to become $1.9Tn+ Retail Opportunity by 2030
India Retail Market Size
In $Tn, CY2018, CY2024, CY2030P
Long-term growth potential remains intact, driven by the favourable macro and the rapid organisation of purchase channels
Indias large and growing middle class Increasingly opting for quality products
Urbanisation Enabling aspirational buying
Economic growth of Tier 2+ markets
Growing female workforce
Rise of organised retail to meet the evolved consumer needs, across pricing, selection and purchase experience
Indian Market Size of Retail, FMCG and BPC Industry
Urban consumers are increasingly spending on discretionary items like cosmetics, apparel, and lifestyle products, with significant demand growth from Tier 2 and 3 cities. This trend is driven by rising disposable incomes, changing lifestyle aspirations, and better access to branded goods, especially impacting the FMCG and BPC sectors. These trends enhance confidence in boosting digital brand visibility, expanding regional markets, and innovating in value-driven and premium BPC segments to cater to Indias diverse consumer needs.
Retail Growth Momentum Expected to Continue
Retail growth momentum expected to continue, driven by:
Increased income/spending power
Supply side investments
Regulatory actions (taxes, incentives)
In the next decade, Indian retail market1 will continue to grow at 10% annually, to exceed $2.5 Tn by 2035
1. Retail size market includes size of categories like Grocery, Electronics, Fashion, Jewelry. All years referred represent Calendar Year. Sou rce: Euromonitor, BCG Analysis
Key Growth Enablers in the Retail Industry
Increasing Internet and Smartphone Penetration |
Adoption of Digital Payments and Cashless Transactions |
Changing Consumer Preferences, Need for Personalisation, and Convenience |
Favourable Demographics: Young, Urbanising and Expanding Middle Class |
Increased Penetration of E-commerce in Tier 2 and Tier 3 Cities |
Rise in Income and Purchasing Power |
Easy Consumer Credit and an Increase in Quality Products |
Brand Consciousness and Aspirations |
Technology, AI and Personalisation |
Expansion of Retail Formats and Omnichannel Retailing |
Indian FMCG Industry Overview
FY 2425 marked a year of resilient growth for Indias FMCG sector, with CRISIL projecting 79% revenue growth, driven by volume expansion, festive demand, and strategic pricing. Rural consumption grew by 10%, supported by a favourable harvest and government initiatives, while urban demand strengthened in H2FY25, aided by improved consumer sentiment and a supportive policy environment. The sector, valued at $122 Billion in 2023, is expected to grow at a ~8% CAGR, reaching $166 Billion by 20271, supported
1
Source: Markets Research Futures Study by favourable demographics, rising consumer demand, digital adoption, and price-led growth in essentials. Digital commerce is playing a pivotal role, with online FMCG sales exceeding $6 Billion in FY 2425 and expected to grow at a 30%+ CAGR over five years, driven by D2C models, growing digital penetration, and higher purchase frequency, especially in metros where e-commerce volumes surged 40%. The Beauty and Personal Care (BPC) segment in India is valued at $22 Billion in 2024, contributing 17.3% of the overallFMCG market. Within online channels, BPC accounts for 35% of Online FMCG sales, valued at $16.8 Billion in 2024 (Kantar), and is projected to grow at a CAGR of 11%, driven by premiumisation and rising demand for ingredient-led, high-quality products.
These shifts align with Honasa
Consumers digital-first, innovation-led strategy, which focuses on high-growth categories and addresses evolving consumer needs.
FMCG Market in India
($ Billions)
Key Growth Enablers in the FMCG Sector
Strong Demand in Tier 2, 3 and 4 Cities beyond Metros and Tier 1 |
Digital Transformation and E-commerce Expansion |
Economic Stability and Consumer Confidence |
Premiumisation and Conscious Consumption |
Policy Support and Infrastructure Development |
Resilience of Smaller Manufacturers |
Smart Distribution Networks with Omnichannel Integration |
Competition and D2C Disruption |
Beauty and Personal Care Industry Overview
Indias Beauty and Personal Care (BPC) industry is a faster-growing sub-segment within the FMCG category projected to grow from $22 Billion in 2024 to $34 Billion by 2028, registering a CAGR of 11%. This robust growth is underpinned by favourable macroeconomic factors, including rising disposable incomes, increasing urbanisation, and higher discretionary spending across both metros and emerging cities. The industry has evolved well beyond basic hygiene and grooming to encompass lifestyle, wellness, and self-care, making BPC purchases increasingly linked to personal identity, self-expression and aspiration.
GEN Z & YOUNG MILLENNIALS ARE SPEARHEADING BEAUTY CONSUMPTION AND GROWTH
Driving Consumption Growth
Gen Z and Millennials are the largest cohort for beauty consumption, and they are expected to grow in the next few years
POPULATION1 OF INDIA BY AGE COHORT
2024E, % of total
Triggers of Beauty Consumption
FAST-PACED TRENDS
Unique formats and Instagrammable packaging turn beauty products into must-have items.
STATUS-SIGNALLING
Willing to pay a premium for beauty brands that offer exclusivity and bragging rights.
STORY-WORTHY BRANDS
From niche solutions to inclusive offerings, compelling brand narratives like wanting to be youthful or seeking longevity of impact, resonate deeply, driving loyalty and purchases.
PEER RECOMMENDATIONS
The rise of micro-influencers makes peer-driven endorsements a powerful and trusted source of beauty inspiration.
PERSONALISATION and AWARENESS
Individuals within families are developing distinct product preferences, supported by rising awareness exemplified by the growing adoption of suncare.
The premiumisation of the category is a major underlying trend. Indian consumers are increasingly gravitating toward solution-oriented, high-efficacy, and sensorial products, with a growing preference for brands that offer clean formulations, ingredient transparency, and an elevated user experience. A noticeable shift from transactional to experiential consumption is underway, driven by greater awareness around global beauty standards, the influence of social media, and an increasing desire for personalisation. This has also given rise to new sub-categories such as derma cosmetics, hybrid skincare-make-up products, and wellness-infused beauty solutions. At the centre of this evolution are Millennials and Gen Z, who together account for over half of Indias population and are rapidly becoming the dominant BPC consumer segments. These cohorts are digitally native, globally aware, and far more experimental in their beauty choices compared to previous generations. Their buying behaviour is shaped by a mix of aspiration, values, and convenience; they are not only seeking brands that look good and work well but also those that stand for something meaningful. Personalisation, purpose-led propositions, and seamless digital discovery are key themes driving their engagement, pushing brands to rethink how they connect, communicate, and co-create with their consumers. Some of the recent trends in the BPC market are:
Premiumisation and Aspiration-led Consumption
Consumers are increasingly willing to trade up for quality, efficacy, and sensorial experiences
Ingredient transparency, claims, and narratives play a central role in purchase decisions
Wider Adoption of Sequential and Regimen-based Routines
Influenced by global beauty cultures, multi-step skincare and haircare routines are gaining ground
This is expanding usage occasions and basket sizes
Digital Discovery and Personalisation
Social platforms like YouTube and Instagram are major enablers of trend visibility and education
AI-powered product recommendations and virtual try-ons are enhancing online engagement
E-commerce and Omnichannel Expansion
The online BPC market, currently at $4.9 Billion, is growing at 25% CAGR, set to contribute 33% of total category sales by 2028
Availability across online platforms, general trade, modern retail, and D2C is improving accessibility across geographies
Conscious Consumption are Taking Centre Stage
Consumers are gravitating toward cruelty-free, clean-label, and environmentally responsible options
Packaging innovation and ingredient ethics are becoming brand differentiators
Brand Engagement and Innovation
AR/VR-based trial tools, smart diagnostics, and customised solutions are enhancing experience and stickiness
Tech-driven brands are better equipped to scale efficiently and retain digital-native audiences
Amidst this evolving backdrop, homegrown digital-first brands are creating significant value, capitalising on white spaces and shifting consumer loyalties. While the market is getting increasingly crowded, only a handful of players have surpassed the 100 Crores revenue mark annually, underscoring the importance of meaningful brand-building, product innovation and distribution needed for scaling up. Honasa Consumer Limited stands out as a frontrunner in this new wave. With its innovation-led product development, omnichannel distribution, and sharp focus on underserved needs, Honasa has built a portfolio of purpose-driven brands that resonate deeply with todays consumer. Its ability to engage audiences across digital platforms, penetrate deeper into under-indexed markets, and build trust through storytelling positions it well to scale further and create long-term enterprise value.
Consumer Behaviour Insights
The consumer landscape is rapidly transforming, driven by evolving preferences, technological advancements, and shifting cultural dynamics. This change is reshaping how brands connect, grow, and stay relevant in this evolved consumer ecosystem.
Shifting to Individual-centric Consumption
Indian consumers are increasingly shifting toward individual-centric consumption, focused on personal needs and preferences.
40%
Young Indians Prefer Lifestyle-aligned Products
Accelerated Adoption of Global Trends
Rising social media connectivity is accelerating the flow of global trends to Indian consumers. As expectations evolve rapidly, brands must innovate faster to remain competitive. This shift is particularly important in the Beauty and Personal Care industry, where the pace and intensity of competition have grown significantly in recent years.
Rising Influence of Content Creators in the Education Category
Content creators now play a pivotal role in shaping consumer awareness and influencing purchase decisions, particularly in skincare and wellness categories. However, consumers are increasingly favouring authentic, trusted influencers who offer genuine recommendations, shifting away from mass endorsements and prioritising credibility and relatability in brand messaging.
Targeting Personalisation via Digital Media
The rapid advancement of digital advertising technologies has empowered brands to deliver highly personalised experiences with greater precision, enabling targeted messaging that resonates deeply with individual consumer preferences, enhances engagement, and drives more efficient customer acquisition across digital platforms.
E-commerce and Quick Commerce as Scalable Distribution Channels
Indias e-commerce and quick commerce sectors are experiencing rapid growth, with quick commerce reshaping consumer expectations around speed and convenience.
280% Growth in Quick Commerce over Two Years
Business Review
Honasa Consumer Limited is Indias leading digital-first player in the Beauty and Personal Care (BPC) sector, focused on delivering innovative, high-quality products across the BPC category that serve the needs of evolving consumers. These consumers are informed, aspirational, and seek solution-driven products tailored to their unique preferences.
The Company offers a distinct portfolio of purpose-led, innovation-driven products in categories, including face cleansers, shampoos, sunscreens, moisturisers, face serums, baby care and lipsticks amongst others through brands, including Mamaearth, The Derma Co., Aqualogica, BBlunt, Dr. Sheths, and Staze, catering to diverse needs across natural or science-based in skincare and haircare categories. As Indian consumers become more discerning and digitally engaged, Honasa is focused on product innovation, digital growth, and omnichannel strategies, reaching consumers digitally as well as through omnichannel approach. The Company is committed to delivering high-quality, effective products that align with consumer values of wellness, transparency, and sustainability. Honasas leadership in the digital-first space makes it the largest player in this sector in India, and it is well-positioned to leverage growth opportunities in emerging trends and underserved markets.
Strategic Priorities
In FY 24-25, Honasa focused on decisive action and strategic clarity. We started the year by revisiting the foundational principles that fuelled our initial growth. Throughout the year, we focused on listening more intently to our consumers, examining our processes in depth, and aligning our execution with long-term objectives. This translated into a series of concrete initiatives and strategic moves that defined our approach throughout the year.
Rebalancing How to Play and Where to Play
As part of its strategic evolution, Honasa is recalibrating its innovation and growth model by balancing How to Play (trend-led innovation) with Where to Play (category-led prioritisation). The Company is shifting focus to reallocating in high-performing core categories, including face cleansers, suncare, shampoos, moisturisers, serums, lipsticks and baby care, while continuing to pursue relevant, insight-driven innovations. This sharper focus aims to ensure long-term brand relevance and leadership by aligning investments with consumer needs across proven formats and partitions such as hydration, glow, oil control, anti-dandruff, and hair fall control. The approach reflects a disciplined, opportunity-sized growth agenda with strategic resource allocation.
Focused Category Leadership
Honasa remains committed to deepening its leadership in select focus categories where it has a clear competitive advantage. These focus categoriesface cleansers, sunscreens, face serums, shampoos, baby care and lipsticks - present significant market opportunities or ability to offer healthy margin structures and strong alignment with the Companys existing portfolio.
Face Cleansers (Industry size:
9,000 11,000 Crores; Industry CAGR:
6 8%)1: Honasa commands a 1215% online market share as per internal estimates and ~5% offline share in Urban Offline as per Nielsen. The company played in selected partitions of the Face Wash category, like Glow through Ubtan Face Wash and Rice Face Wash, Oil Control through Tea Tree Face Wash and Acne through The Derma Cos Sali-Cinamide Anti-Acne Face Wash. The Company aims to rank among the top three players nationally over the next 35 years.
Face Serums (Industry size: 2,700 2,900 Crores; Industry CAGR: 20%+)1: With 1416% online share as per internal estimates, Honasa is focused on becoming the leading national brand in this rapidly evolving segment. We drove category leadership through The Derma Co. and Dr. Sheths, with a portfolio centred on performance-driven formulations designed to deliver visible results. Products like 2% Salicylic Acid Serum and 5% Niacinamide Daily Face Serum led the charge.
Moisturisers (Industry size: 4,000 4,500 Crores; Industry CAGR: 15%+)1: With an online share of <5%, Honasa is working towards securing a top-five national position. We launched a complete portfolio in this category through our brands, Mamaearth, The Derma Co., Aqualogica, and Dr. Sheths, and we are looking to disrupt this category through products suitable for Indian skin and climate.
Sunscreens (Industry size: 3,000 3,200 Crores; Industry CAGR: 15%+)1: Honasa holds a >20% online share as per internal estimates and is targeting leadership in this fast-growing category. We prioritised developing formulations specifically suited to Indian skin types and climatic conditions. Gel-based textures, ideal for Indian weather, along with innovative formats such as sunscreen sticks, strongly resonated with consumers.
Shampoos (Industry size: 8,000 10,000 Crores; Industry CAGR: 4 6%)1:
The Company currently holds a 46% share online as per internal estimates and ~2% in offline channels in Urban Offline as per Nielsen. Mamaearth made significant progress in the category with the launch of its Rosemary Shampoo, a thoughtfully crafted formulation targeting scalp health and nourishment. BBLUNT strengthened its leadership in haircare by introducing new shampoos under the Intense Moisture and Hairfall Control ranges, tailored to meet the evolving needs of consumers.
Baby Care (Industry size:
1,200 1,500 Crores; Industry CAGR:
7%+)2:Mamaearth enjoys strong brand equity in this category, and the Company aims to establish itself among the top three players nationally. Mamaearths Milky Soft Head to Toe Wash emerged as a bestseller, reinforcing the brands leadership in the online baby care segment.
Lipsticks (Industry size: 3,000 3,200 Crores; CAGR: 10%+)1: Holding <1% online market share while steadily expanding offline, Honasa is targeting entry into the top five national brands by introducing innovative products and product formats that can potentially disrupt this category.
Owning the Chessboard of Category Partitions
As part of its sharpened category strategy, Honasa is focused on owning the chessboard in the focus categories by clearly defining and winning in high-potential partitions. This ensures distinct, non-overlapping propositions tailored to consumer needs, hence, relevant problem-solving.
For example, in the face wash category, the Companys focus is concentrated in three core partitionsGlow, Oil Control, and Acne, which together represent over 60% of the category. These segments are well aligned with Honasas product strengths and consumer demand spaces. Flagship offerings such as Mamaearth Ubtan Face Wash and Rice Face Wash lead in the Glow partition; Mamaearth Tea Tree Face Wash addresses Oil Control; and The Derma Co. Sali-Cinamide Anti-Acne Face Wash caters to the Acne segment.
By prioritising the partitions, Honasa avoids dilution across undifferentiated or low-synergy segments such as routine cleansing or hydration, which are currently dominated by legacy brands. This disciplined partition-led strategy enables Honasa to deepen its footprint, optimise innovation, and strengthen competitive advantage in its focus categories.
Offline Go-To-Market (GTM) as a Core Capability
Honasa is institutionalising offline GTM execution through three key priorities - Execution Discipline and Transparency through enhanced oversight of secondary sales, retailer schemes, pricing consistency, and field execution. Improved Distribution Quality through transitioning to an ROI-led, Tier-1 distributor network with stronger financial and operational capabilities and Tech-enabled Sales by investing in advanced DMS/SFA systems to enable future-ready, efficient sales operations.
Building on this foundation, Honasa is now focused on strengthening its offline GTM muscle through a structured, future-oriented distribution strategy anchored on five strategic pillars:
Direct Distribution Expansion
Widening Retail Outlet Coverage
Inventory Optimisation
Supply Chain Strengthening
Norm-based Replenishment This comprehensive offline GTM strategy is aimed at building a scalable, capital-efficient distribution backbone that supports Honasas long-term ambition of deeper market penetration and sustained growth across geographies and channels.
Reinventing Innovation with Sharper Purpose
Honasa continues to embed purposeful innovation at the core of its growth strategy, guided by two strategic pillars:
Category and Partition Expansion: Enabling brands to enter new, high-potential categories and micro-partitions aligned with emerging consumer needs.
Continuous Core Improvement: Driving formulation upgrades and performance enhancement across existing products.
Premiumisation
One of the key areas to focus on is bringing Prestige, First-to-India Innovation for consumers seeking premium and differentiated beauty and personal care products. Each innovation is purposefully designed to reinforce Honasas leadership in its focus areas, strengthening brand differentiation and consumer relevance across categories.
Improving the Core through Continuous Improvement and Reformulation
Honasa continues to advance product excellence through a science-backed reformulation strategy, aimed at enhancing efficacy and consumer preference across focus categories. We deeply appreciate the critical role that product superiority and in-house R&D play in building enduring, successful brands. This belief has strengthened our resolve to anchor our products in strong scientific foundations. A significant step in this direction was the acquisition of Cosmogenesis and the subsequent strengthening of our internal R&D teaminvestments that will enhance our formulation depth and innovation capabilities.
We are committed to further elevating product quality. Our ambition is for our focus category products to consistently outperform peers in blind tests, with continuous formulation improvements driven by consumer insights and feedback to exceed category standards.
Evolving Media Strategy
In a rapidly evolving media landscape, Honasa is recalibrating its marketing playbook approach by:
Optimised Media Mix
Cohort-based
Consumer Communication
Content Format Alignment
Refined Influencer Strategy These strategic shifts collectively position Honasa to build sustainable, scalable, and category-leading BPC brands, anchored in consumer relevance, product excellence and execution strength.
FY 24-25 has been the year of acceptance and re-alignment to be future ready, driven by a deliberate focus on seven focus categoriesface wash, shampoo, sunscreen, moisturiser, serums, lipsticks, and baby care and playing in select partitions. These partitions, offering strong growth potential, now form the backbone of the brands forward-looking strategy.
In parallel, as Honasa transition its General Trade distribution, Mamaearth got impacted since the brand contributed to majority of the companys General Trade business. However, leveraging its digital-first strategy, Mamaearth has established itself as a leading brand across online marketplaces, with products like its Rice Face Wash ranking among bestsellers. Through its D2C channel, Mamaearth has reached and served over 8.3 million customers to date.
Mamaearth has emerged as the third-largest2 skincare brand in India, backed by a strong omnichannel presence and growing market share. In March 2025, the brand had captured 5.3% value market share in the face wash category and 1.6%1 in shampoos, while expanding its offline footprint by 22% YoY to 236,825 FMCG outlets, reflecting the strength of its distribution strategy.
Mamaearth reinforced its market leadership and relevance. As per Kantar Brand Health Track, in brand strength/equity parameters, it maintained its No. 1 position in online face washes and ranked third in offline retail. We also increased household penetration in key categories, i.e. 4.3% (181 bps increment over the last two years) in face wash and 2.1% (73 bps increment over the last two years) in shampoo (as of December 2024). A renewed focus on key SKUs, including Rice Face Wash, Ubtan Face Wash, Rosemary Anti-Hairfall Shampoo, Onion Shampoo, Vitamin C Daily Glow Sunscreen, Beetroot Hydraful Light Moisturising Cream, and Milky Soft Head to Toe Wash, drove performance within the focus categories.
The year also saw us coming up with innovations like Beetroot Gentle Face Wash, Rice Water Dewy Sunscreen, Beetroot Hydraful Moisturiser, amongst others, which continued to strengthen our focus categories portfolio. Additionally, celebrity endorsements featuring Shilpa Shetty and Palak Tiwari enhanced consumer resonance across cohorts by balancing legacy trust with contemporary appeal. Intending to tackle deforestation and bring income opportunities, under the Plant Goodness initiative, Mamaearth has planted more than 9,00,000+ trees since its inception with every order. The initiative expects a yield of 18,000+ tonnes of fruit per season, giving a revenue potential of 36 Crores per annum for the farmers.
In FY 24-25, The Derma Co. surpassed the 500 Crores revenue milestone, registering strong double-digit growth driven by robust category performance and innovation-led brand strategy. The brand operated with EBITDA profitability in FY 24-25, having broken even in FY 23-24. This underscores rising consumer trust in the brands science-backed formulations.
Brand search activity grew 1.4x, driven by a combination of high-performing product innovations and targeted customer activations. Key products like the 1% Hyaluronic Sunscreen Aqua Gel, 2% Kojic Acid Serum, Sali-Cinamide Anti-Acne Face Wash and 10% Niacinamide Serum continued to lead as bestsellers across marketplaces. This strong momentum reflects the brands ability to deliver effective solutions aligned with consumer needs.
The Derma Co. was introduced offline in FY 24-25 and growth in the channel was equally noteworthy, with the brand crossing 100 Crores in ARR and expanding its presence to 10,000+ offline stores including 2,000+ Modern
Trade stores. Encouraging traction was observed across beauty counters and chemist networks, reinforcing the brands repeatable and scalable execution model. Exclusive Brand Outlets were also introduced to elevate the consumer experience through immersive storytelling and enhanced visibility.
Products like the 1% Hyaluronic Sunscreen Aqua Gel, 2% Kojic Acid Serum and Sali-Cinamide Anti-Acne Face Wash were key growth drivers for the portfolio. Their strong consumer uptake contributed meaningfully to brand and category momentum. These launches highlight the brands strength in effective, science-backed skincare solutions.
Innovation remained central to strengthening the brand across key Focus Categories, with new launches like the 1% Hyaluronic Sunscreen Oil-Free Gel under sunscreen for specific skin types and 5% Nia-Ceramide Deep Moisturising Cream gaining strong consumer traction. The brand also launched a Skin-Renew range through Indias first international dermatologist collaboration with Dr. Vanita Rattan. Additionally, first-to-India, premium offerings such as the 50,000 PPM Vitamin C Microneedle Serum Shot and the 15% Vitamin C Ampoule Serum Kit further enhanced our innovation strength.
Under the Young Scientists programme, the brand supports science education for underprivileged students, bridging the gap between theory and practical application. This initiative empowered 30,000+ children from underserved communities in schools in Bengaluru and Chennai.
During the year, Aqualogica deepened its presence in the skincare segment through focused portfolio expansion and innovation. The brand delivered strong performance across its three core categories, sunscreens, moisturisers and newly launched body mists.
They recorded a 25%+ YoY increase in brand searches , reflecting rising consumer engagement and growing visibility. In March 2025, the brand achieved its highest-ever monthly search volume, driven by targeted marketing initiatives and impactful product launches.
The brand has established a strong digital reach through its D2C website and mobile application. It continues to perform well across marketplaces, with the Glow+ Dewy Sunscreen emerging as a consistent bestseller, underscoring high consumer preference and product effectiveness. Hero products such as the Glow+ Dewy Sunscreen, Illuminate+ Dewy Sunscreen, Refresh+ Perfume Body Mist, and Glow+ Face Wash have continued to drive strong performance. These offerings have resonated well with consumers, earning widespread preference and becoming staples in their personal care routines.
The newly launched Hydra Gel range played a key role in scaling Aqualogicas moisturiser portfolio, establishing the brands presence in a growing category and supporting its multi-category expansion. Aqualogica strengthened its innovation leadership by upgrading its best-selling sunscreens with APF and introducing Indias first SPPF (Sun and Pollution Protection Factor) formulation. Aqualogicas commitment to providing access to potable water through its Fresh Water for All initiative has ensured clean and safe drinking water reaches remote parts of India, impacting 900+ households and saving hundreds of hours for women daily, allowing them to use that time for earning income, childcare, and household work.
Rooted in the philosophy of The Power of Nature & Science, Dr. Sheths combines potent actives, such as Kojic Acid, Ceramides, and Niacinamide, with carefully botanicals such as Kesar, Haldi and Centella to promote skin resilience and holistic wellness. The brand delivered robust growth in key focus categories such as sunscreens and moisturisers, with its serum portfolio also showing progress. This momentum was driven by impactful cross-platform activations that spurred a notable rise in brand and category searches. Products like Ceramide & Vitamin C Sunscreen, Ceramide & Vitamin C Oil-Free Moisturiser and Kesar & Kojic Acid Sunscreen received much consumer love. In FY 24-25, the brand launched, first-to-India, innovative prestige products such as the Bakuchiol & PDRN Serum and Argireline & Copper Peptide Btox Serum, catering to an ingredient-aware, premium skincare consumer. Concurrently, Dr. Sheths continued to build a multi-category portfolio across sunscreens, serums, and moisturisers.
Product innovation remained at the core of Dr. Sheths strategy. The year saw the launch of personalised skincare solutions, including Oil-Free Sunscreens for oily skin, strengthening the brands relevance in targeted skincare. Dr. Sheths, in partnership with Doctors for You (DFY), launched the Healthy India Initiative to enhance healthcare accessibility in rural areas. As part of this initiative, the brand rolled out the Healthmobile on Wheels program, bringing vital medical services to underserved communities and conducting over 10,000 health check-ups to date.
With a sharp focus on performance, premiumisation, and personalisation, Dr. Sheths is well-positioned to deliver sustained value in Indias evolving skincare market.
Rs.150Cr
Net Annual Revenue Run-Rate for Dr. Sheths BBlunt Product Business reached 100 Crores in net sales in FY 24-25, growing 4x+ in three years since the acquisition. The brand has been able to deliver growth through digital-first scale up scaling well on the quick commerce channels. It continues to be a market leader in styling space on online channels . The Intense Moisture and Hair Fall Control ranges, which were well accepted by the consumer, enabled this performance in the online channel. The styling portfolio, including hair masks, was scaled on the quick commerce platforms driven by products like Hot Shot Hair Spray.
Products like Refresh Dry Shampoo, Intense Moisture Lamellar Water, and 7-in-1 Repair & Revive Hair Mask, amongst others, generated significant interest amongst consumers and drove innovation in the category. Through the Shine Academy, BBlunt has empowered over 15,000 women from underprivileged communities by providing them with skill-building and professional training opportunities.
Rs.100Cr
Net Sales in FY 24-25
An aspirational colour cosmetics brand for GenZ, Staze, is a pioneering range of high-performance, long-lasting makeup, driven by advanced C-Lock Technology. Each product has been carefully crafted with the functional expertise of 40+ beauty experts to deliver studio-finish makeup that suits all Indian skin tones and skin types.
Flagship products such as the 9To9 3-in-1 Lipstick and Gloss Lock 2-in-1 Liquid Lipstick have continued to deliver strong performance, reaffirming consumer preference. Additionally, the Cr?me de la Matte Lipstick has emerged as a standout innovation, expanding the brands lip portfolio meaningfully.
Innovation and R&D
Honasa continues to strengthen its innovation capabilities, expanding its portfolio across focus categories with consumer-centric, focus partition-led product development. The Company remains at the forefront of introducing novel ingredients in accessible and effective formats across its house of brands. Committed to product excellence, Honasa aims to ensure its offerings consistently outperform competitors in blind tests. The team continuously refines formulations, guided by ongoing consumer insights and feedback, to exceed category standards and elevate the consumer experience.
Read More on page 34 In FY 2425, we enhanced our innovation engine with data-led insights and proprietary AI tools, like UCR and Prophet, to better address individual consumer needs. This enabled brands to enter new categories and partitions, while also driving continuous improvements across our core skincare and personal care offerings. Some of the key innovations across brands include:
Honasas distribution model is built on a robust omnichannel approach, ensuring product availability across both online and offline platforms to meet consumers wherever they shop. This strategy enhances consumer convenience, deepens brand accessibility, and supports seamless engagement across multiple touchpoints.
A tech-enabled supply chain supports this omnichannel framework, powered by advanced machine learning tools for demand forecasting, replenishment, and inventory optimisation. This agility allows for quicker response to shifting consumer trends and market dynamics. Online sales data further guides innovation, revealing category-level demand clusters (e.g. Anti-acne and Oil Control under Face Cleansers), enabling precision-led marketing and targeted product launches.
Online Channels
The online distribution engine is anchored by a dual-pronged approachDirect-to-Consumer (D2C) and strong presence across leading marketplaces. The D2C ecosystem, including brand-owned websites and apps, is pivotal in seeding trials for new launches and building traction for early-stage brands. This platform also allows Honasa to leverage real-time consumer feedback to iterate and evolve offerings quickly.
In addition to its D2C presence, the Company is steadily expanding its share on beauty-centric vertical e-commerce platforms as well as broader horizontal marketplaces. Honasa is also placing strategic bets on emerging channels like quick commerce, where it has already established a strong foothold and is actively investing in infrastructure and supply chain capabilities to serve consumers effectively on this front.
In FY 24-25, our online channels enabled product availability across over 97% of Indias pin codes, demonstrating scale, agility, and reach. The online channel continues to be instrumental in supporting Honasas focused category approach, positioning its brands with distinct propositions in emerging and fast-evolving beauty and personal care segments.
Offline Channels
The Company has built a robust offline presence through an expansive network across both General Trade and Modern Trade channels, significantly enhancing consumer accessibility and reach. By March 2025, the brand operated 100+ Exclusive Brand Outlets (EBOs), which play a key role in reinforcing brand equity by offering a more personalised and immersive retail experience. This offline expansion is reflected in consistent value market share gains across core categories.
98+Bps
Value Market Share1 YoY Improvement for MAT2 Mar25 in Face Cleanser
22+Bps
Value Market Share1 YoY Improvement for MAT2 Mar25 in Shampoo
2,36,825
No. of FMCG Outlets Reached in India as of March25, Increasing Distribution by 26%3 YoY
10,000+
No. of Modern Trade Outlets reached as of March25
Mamaearths offline footprint continued to expand, reaching 2,36,825 FMCG retail outlets3 across General Trade and Modern Trade formats as of March 2024, reflecting a strong 26% year-on-year increase in distribution penetration. The Derma Co. one of the Companys newer brands, also gained significant offline momentum during the year, achieving 100 Crores in ARR4 through this channel. Honasa further reinforced its offline presence by driving category leadership, especially in Modern Trade, where offtakes grew by over 20% YoY. Mamaearth and The Derma Co. are now available in more than 10,000 outlets, including prominent retail chains like Reliance, D-Mart and Apollo Pharmacy. A significant shift was also undertaken in FY 24-25 with Project Neev, transitioning from a super-stockist-led to a direct-distribution model.
Read More on page 31
Our offline operations are supported by a network of over 350+ distributors. To strengthen control and improve in-market execution, we have implemented a Distributor Management System (DMS) and Sales Force Automation (SFA) across the distribution chain. Backed by 11 strategically located warehouses, the network ensures timely delivery to customers and direct distributors in the top 100 cities, while extending reach through super-stockists in cities beyond the top 100.
Sources:
1. Source: NielsenIQ, for All India Urban 2. MAT - Moving Annual Total 3. NielsenIQ, Number of FMCG retail outlets with Mamaearths presence (All Indian Urban + Rural) 4. Based on Mar25 Net Sales Value
These innovations underscore Honasas ability to anticipate consumer needs, bring global trends to market swiftly, and deliver differentiated offerings across BPC categories.
Brand Building, Engagement and Marketing
Honasa continues to drive deeper consumer engagement, enhance brand recall, and support conversion across digital and traditional platforms.
An always-on marketing approach ensures consistent visibility through varied content formats and omnichannel presence. Nano marketing funnels are optimised to deliver highly personalised, cohort-specific experiences, while enhanced media-mix modelling aligns with evolving consumer behaviour, reinforcing awareness-led brand growth.
Data-driven targeting enables precise household-level outreach, improving marketing efficiency. The Company sees content as a key differentiator, creating vernacular-first, high-impact content tailored to regional preferences. A nuanced understanding of language markets underpins its consumer connect, building stronger cultural relevance and brand affinity.
Honasas integrated marketing framework ensures a consistent brand narrative across the consumer journeyfrom awareness to conversion, reflected in increased online search volumes and deeper household penetration. The Companys in-house content engine and influencer network enable agile, insight-led storytelling.
Acknowledging millennials desire for meaningful content, the company leverages deep consumer insights to develop informative, engaging messaging that aligns with their interests and creates a strong emotional connection with the audience.
Purpose remains central to Honasas brand-building strategy, with campaigns rooted in sustainability, safety, and efficacy. Notable initiatives include Goodness Delivered in 10 Minutes with Zepto, where a tree was planted for every Mamaearth order.
Financial Performance Overview
(a) Results
In Rs.Mn
Particulars |
FY 2024-25 | FY 2023-24 | YoY Growth |
Revenue from Operations | 20,669.49 | 19,199.04 | 7.66% |
Sale of Products | 20,264.77 | 18,815.24 | 7.70% |
Sale of Services | 404.72 | 383.80 | 5.45% |
Cost of Goods Sold | 6,129.25 | 5,807.28 | 5.54% |
Gross Profit | 14,540.24 | 13,391.76 | 8.58% |
Gross Profit Margin % | 70.3% | 69.8% | - |
Employee Benefit Expense | 2,004.18 | 1,705.63 | 17.50% |
% of Revenue | 9.7% | 8.9% | - |
Advertisement Expense | 7,436.50 | 6,612.80 | 12.46% |
% of Revenue | 36.0% | 34.4% | - |
Other Expense | 4,414.22 | 3,702.46 | 19.22% |
% of Revenue | 21.4% | 19.3% | |
EBITDA | 685.34 | 1,370.87 | (50.01)% |
EBITDA Margin % | 3.3% | 7.1% | - |
Depreciation and Amortisation | 450.06 | 306.17 | - |
Finance Costs | 126.49 | 90.41 | - |
Other Income | 787.34 | 497.01 | 58.42% |
Profit Before Tax | 896.13 | 1,471.30 | (39.09)% |
PBT Margin % | 4.3% | 7.7% | |
Tax Expenses | - | - | - |
Current Tax | 277.48 | 368.01 | - |
Deferred Tax (credit) | (108.22) | (1.99) | - |
Profit After Tax | 726.87 | 1,105.28 | (34.24)% |
PAT Margin % | 3.5% | 5.8% |
Revenue from Operations
Revenue from operations increased by 7.66% to 20,669.49 Million in FY 24-25 from 19,199.04 Million in FY 23-24.
The increase is primarily due to an increase in the sale of products by 7.70% to 20,264.77 Million in FY 24-25 from 18,815.24 Million in FY 23-24.
Honasa delivered an underlying volume growth of 13.2% in FY 24-25, marking a volume-led growth. This increase was driven by the scale up of the younger brands as Mamaearth underwent transition.
Cost of Goods Sold and Gross Profit
Cost of goods sold increased to 6,129.25 Million in FY 24-25 from 5,807.28 Million in FY 23-24; the increase was in line with the increase in sales of products during FY 24-25. The Companys Gross Profit stood at 70.3% in FY 24-25 as compared to 69.8% in FY 23-24. The Gross Profit margin improved by 59 bps due to procurement efficiencies unlocked and increased salience of younger brands (The Derma Co, Aqualogica, Dr. Sheths, BBlunt and Staze) in sales with a higher gross margin profile.
Employee Benefits Expense
Honasas employee benefits expense increased by 17.5% in absolute terms to 2,004.18 Million (9.7% of revenue) in FY 24-25 from 1,705.63 Million (8.9% of revenue) in FY 23-24, an increase of 81 bps in employee benefit expenses as a % of revenue YoY. The increase is primarily due to an annual increase in salaries, wages, and bonuses in FY 24-25 as we strengthen our leadership and mid-management layer.
Advertisement Expense
The Companys advertisement expenses increased by 12.5% in absolute terms to 7,436.50 Million (36.0% of revenue) in FY 24-25, as compared to 6,612.80 Million (34.4% of revenue) for the FY 23-24 due to the following reasons-
Ad spends on younger brands
Realigning our marketing playbooks following a three-pronged approach:
Always on marketing
Improved media mix modelling
Awareness led brand building
Other Expenses
Honasas other expenses increased by 19.22% in absolute terms to 4,414.22 Million (21.4% of revenue) in FY 24-25 from 3,702.46 Million (19.3% of revenue) in FY 23-24, an increase of 207 basis points as a % of revenue YoY. This increase is due to the following reasons:
Change in channel mix towards online leading to higher distribution costs.
New warehouse structuring
Strategic consultation projects (Bain)
EBITDA
EBITDA for FY 24-25 stood at 685.34 Million (3.3% of revenue) as compared to 1,370.87 Million (7.1% of revenue), showcasing a margin decline of 382 bps. This was driven by:
Impact of sales return on account of Project Neev
Lack of leverage with revenue impacted due to the General Trade transition, while the company continued to invest in brand-building and employees
Improvement pilots and professional expenses (including consulting expenses)
Depreciation and Amortisation Expense
While depreciation and amortisation expenses increased by 56.99% in absolute terms to 450.06 Million in FY 24-25 from 306.17 Million in FY 23-24. The increase is primarily due to the increase in the depreciation of right-of-use assets was mainly on account of new leases for EBOs and the new warehouse, and an increase in depreciation of property, plant and equipment.
Finance Costs
Finance costs increased by 39.91% to 126.49 Million in FY 24-25 from 90.41 million in FY 23-24, primarily due to an increase in interest on lease liabilities to 118.57 Million in FY 24-25 from 82.51 Million in FY 23-24. The increase in interest on lease liabilities was mainly on account of new leases for EBOs and the new warehouse.
Other Income
Other income increased by 58.41% to 787.34 Million in FY 24-25 from 497.01 Million in FY 23-24, primarily due to an increase in interest income on account of increased investments from cash generated from business as we continue to be a negative working capital cycle business.
Tax Expenses
Total Tax expenses decreased by 53.76% to 169.26 Million for FY 24-25 from 366.02 Million for FY 23-24, primarily due to a decrease in current tax by 90.53 Million on account of lower profits and an increase in deferred tax credit, mainly on account of first-time DTA recognition in Fusion Cosmeceutics Private Limited (100% subsidiary).
Profit for the year was at 726.87 Million versus a loss of 1,105.28 Million in FY 22-23.
(b) Consolidated Balance Sheet
Rs. in Mn
As on | |||
Equity and Liabilities |
March 31, 2025 | March 31, 2024 | YoY Growth |
PPE including CWIP | 259.15 | 204.23 | - |
Goodwill | 527.75 | 527.75 | - |
Other Intangible Assets | 1,025.31 | 1,017.51 | - |
Right-of-Use Assets | 1,210.39 | 1,242.61 | - |
Other Financial Assets | 4,654.35 | 2,008.29 | - |
Other Non-Current Assets | 108.99 | 36.66 | - |
Inventories | 1,582.79 | 1,228.36 | - |
Investments | 3,407.75 | 2,917.69 | - |
Trade receivables | 1,323.28 | 1,593.76 | - |
Cash and Bank Balances | 3,312.92 | 4,856.51 | - |
Other Current Assets | 848.71 | 687.07 | - |
TOTAL ASSETS | 17,901.39 | 16,320.44 | 9.7% |
Equity | 11,798.30 | 10,952.71 | 7.7% |
Lease Liabilities | 1,364.00 | 1,309.69 | |
Other Non-Current Liabilities | 107.67 | 104.04 | |
Other Current Liabilities | 1,063.52 | 1,012.93 | |
Trade Payables | 3,567.90 | 2,941.07 | |
Total Liabilities | 6,103.09 | 5,367.73 | 13.7% |
TOTAL EQUITY AND LIABILITIES | 17,901.39 | 16,320.44 |
Assets
Total assets increased by 9.7% to 17,901.39 Million as of March 31, 2025, from 16,320.44 Million as of March 31, 2024. The increase is primarily attributed to the following:
Increase in Other Financial Assets, cash and bank balances, and Investments mainly on account of increased investments through profits generated from business during FY 24-25
Increase in Inventories is in line with an increase in business volumes and the addition of new brands during FY 24-25
Decrease in trade receivables is due to change in channel mix towards online which has a lower credit cycle
Equity
Equity increased on account of the issuance of shares against ESOP exercised.
Increase in retained earnings on account of profit generated during FY 24-25.
Liabilities
Total liabilities increased by 13.7% to 6,103.09 Million as of March 31, 2025, from 5,367.73 Million as of March 31, 2024. The major contributors to this increase are:
Decrease in other current liabilities due to payment of increased TDS liability for ESOP exercised towards the end of FY 24-25
Increase in trade payables in line with an increase in business volumes
(c) Working Capital Days of Sale
The Company continues to have negative working capital, improving its working capital efficiencies by 15 days as it continues to efficiently improve key levers. This is primarily attributable to an improvement in trade payables by 7 days and trade receivables by 6 days.
Rs. in Mn
Particulars |
As of 31 March, 2025 | As of 31 March, 2024 |
Current Assets |
||
Receivables (A) | 1,642.22 | 1,820.45 |
Inventory (B) | 1,582.79 | 1,228.36 |
Other Current Assets (C) | 339.47 | 294.13 |
Total Current Assets |
3,564.50 | 3,342.95 |
Current Liabilities |
||
Payables (D) | 3,567.90 | 2,941.07 |
Provisions (E) | 87.72 | 61.84 |
Income tax payable (F) | 381.13 | 51.01 |
Current lease liabilities (H) | 266.06 | 185.19 |
Other financial liabilities (I) | 217.27 | 226.51 |
Other current liabilities (J)* | 377.40 | 352.11 |
Total current liabilities |
4,897.48 | 3,817.73 |
Net working capital (K=A+B+C-D-E-F-G-H-I-J) | - 1,332.98 | - 474.78 |
Revenue from operations (L) | 20,669.49 | 19,199.04 |
Number of days in period/year (M) | 365 | 366 |
Working Capital Days (N=K/(L/M)) |
-24 | -9 |
*Excluding 321.46 Million of TDS payable on ESOP allotment during March 2024.
(d) Cash Flows
Rs.Rs. in Mn
Particulars |
Year Ended FY25 | Year Ended FY24 |
Cash Flow from Operating Activities |
||
Profit/(Loss) Before Tax | 896.13 | 1,471.30 |
Depreciation of Property, Plant and Equipment (PPE) |
97.68 | 55.62 |
Depreciation of Right-Of-Use-Assets |
327.37 | 231.02 |
Interest Income | -563.41 | -254.32 |
Finance Costs | 126.49 | 90.41 |
Other Non-Cash Adjustments | 138.38 | 58.85 |
Movement in Working Capital |
-50.25 | 1,024.90 |
Cash Flow Generated From/(Used In) Operating Activities | 972.38 | 2,677.78 |
Income Tax Paid | 49.42 | -324.40 |
Net Cash Flow Generated From/(Used In) Operating Activities [A] |
1,021.80 | 2,353.38 |
Cash Flow from Investing Activities |
||
Capex and Intangible Assets | -199.29 | -119.87 |
Sale/(Purchase) of Investments & Bank Deposits |
-1,645.42 | -4,481.66 |
Others |
393.49 | -96.68 |
Net Cash Flow Generated (Used In)/From Investing Activities [B] |
-1,451.22 | -4,698.22 |
Cash Flow from Financing Activities |
||
Proceeds from Issuance of Equity Shares (Net) |
47.90 | 3,633.25 |
Repayment & Interest on Lease Liabilities |
-351.12 | -256.76 |
Others |
-7.91 | -7.90 |
Net Cash Flows (Used In)/Generated from Financing Activities [C] |
-311.12 | 3,368.59 |
Net Increase/(Decrease) in Cash and Cash Equivalents [A+B+C] |
-740.54 | 1,023.75 |
Cash and Cash Equivalents at the beginning of the period |
1,070.21 | 46.46 |
Cash and Cash Equivalents at the end of the period |
329.67 | 1,070.21 |
(e) Key Financial Ratios |
||
Particulars |
FY 2025 | FY 2024 |
Revenue from Operations ( Million) | 20,669.49 | 19,199.04 |
Revenue from Services ( Million) | 404.72 | 383.80 |
Revenue Growth (%) | 7.66% | 28.62% |
Gross Profit ( Million) | 14,540.24 | 13,391.76 |
Gross Profit Margin (%) | 70.35% | 69.75% |
EBITDA ( Million) | 685.34 | 1,370.87 |
EBITDA Margin (%) | 3.32% | 7.14% |
Net Profit ( Million) | 726.87 | 1,105.28 |
Net Profit Margin (%) | 3.52% | 5.76% |
Basic EPS (after Exceptional Items) ( ) | 2.24 | 3.57 |
Return on Capital Employed (%) | 8.67% | 14.26% |
Working Capital Days of Sale | (24) | (9) |
Invested Capital in Business | (481.24) | (230.02) |
Inventory Turnover Ratio | 14.71 | 16.42 |
Trade Receivable Turnover Ratio | 14.17 | 13.23 |
Trade Payables Turnover Ratio | 2.02 | 2.42 |
Current Ratio | 2.07 | 2.73 |
Debt-equity Ratio | NA | NA |
Interest Coverage Ratio | NA | NA |
FCFF ( Million) | 817.87 | 2,235.39 |
Definition of Key Terms
Return on Net Worth (RoNW)
Return on Net Worth is a measure of the profitability of a Company expressed as a percentage. It is calculated by dividing the net profit after tax attributable to equity holders of the Group by the net worth of equity shareholders of the Group.
Return on Capital Employed (RoCE)
Return on Capital Employed indicates the ability of a Companys management to generate returns for both the debt holders and the equity holders. It measures a Companys profitability and the efficiency with which its capital is used. It is calculated by dividing profit before interest and tax by capital employed. Capital employed is the total equity attributable to equity holders of the parent+long-term debt.
Basic EPS
Earnings Per Share (EPS) is the portion of a Companys profit allocated to each share. It serves as an indicator of a Companys profitability. Basic EPS amounts are calculated by dividing the profit/(loss) for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the period/years.
Gross Profit Margin
Gross Profit refers to revenue from operations less purchase of traded goods less increase in inventories of traded goods. Gross Profit Margin refers to the percentage margin derived by dividing Gross Profit by revenue from operations.
EBITDA and EBITDA Margin
EBITDA is calculated as restated profit/ (loss) for the period/year plus tax expense, finance cost, depreciation, amortisation expenses, and exceptional items (impairment loss on goodwill and other intangible assets) less other income. EBITDA Margin is the percentage of EBITDA divided by revenue from operations.
Net Profit Margin
The net profit margin is equal to how much net profit is generated as a percentage of revenue. It is calculated by dividing net profit by turnover.
Working Capital Days of Sale
Working Capital Days of Sale is calculated as Net Working Capital divided by revenue calculated daily.
Inventory Days of Sale
Inventory Days of Sale are calculated as closing inventory divided by revenue calculated daily.
Trade Receivables Days of Sale
Trade receivables Days of Sale are calculated as closing trade receivables divided by revenue calculated daily.
Trade Payables Days of Sale
Trade payables Days of Sale are calculated as closing trade payables divided by revenue calculated daily.
Free Cash Flow to the Firm (FCFF)
FCFF is a measurement of a companys profitability after all expenses and reinvestments. FCFF is calculated by deducting the capital expenditure from the net cash flow generated/(used in) from operating activities.
Operational Overview
Supply Chain and Logistics
The Companys integrated supply chain is crucial for operational efficiency and growth. It spans six cities and includes 11 warehouses , both in-house and through strategic third-party partners, ensuring smooth fulfilment for consumers, distributors, modern trade, e-commerce and Quick Commerce platforms, and super-stockists nationwide. A central warehouse consolidates inventory and optimises dispatch, enhancing responsiveness across channels. Data-driven strategies refine warehouse locations and capacity, while an integrated ERP and Order Management System streamline procurement and distribution, providing inventory visibility. Advanced data science and machine learning improve demand forecasting and inventory management, enabling quick adaptation to market changes and positioning the Company to meet evolving retail demands with its omni-channel distribution capability.
Technology
Technology remains central to Honasa Consumer Limiteds growth strategy, enabling seamless integration across its brand portfolio, omnichannel operations, and supply chain. The Companys robust digital infrastructure enhances operational efficiency, supports sustainable scale, and strengthens its direct-to-consumer model through advanced applications, backend systems, and third-party integrations. This ecosystem optimises demand forecasting, inventory management, and logistics execution.
Honasa continues to leverage agentic AI workflows and large language models across the product lifecycle, including crafting product concepts, crafting communication with precise consumer messaging, evaluating the communication concept, identifying the optimal communication channel, assisting the consumer purchase and reviewing consumer product feedback. With a skilled in-house technology team, Honasa prioritises scalability, adaptability, and security. The Company remains committed to data protection, customer trust, and regulatory compliance in a rapidly evolving digital landscape.
Read More on Page 39
People and Culture
Honasas organisational culture is a key enabler of its success, anchored in urgency, collective ownership, and a deep consumer focus. These values are embedded in everyday decision-making, fostering collaboration, agility, and a proactive mindset, driving innovation, resilience, and operational excellence.
The Companys talent strategy is designed to build an agile, entrepreneurial workforce aligned with Honasas core values. It focuses on attracting high-potential talent, diversifying the talent pool, and strengthening capabilities to future-proof the organisation. A lean structure ensures quality hiring, with a focus on talent that drives sustained business growth.
Learning and development are central to Honasas growth agenda, with emphasis on real-time feedback, hands-on problem-solving, and continuous upskilling through curated learning experiences and stretch assignments.
Leadership and succession planning are proactively managed through structured programmes that nurture internal talent. This approach builds a strong pipeline of future-ready leaders who embody a culture of ownership, innovation, and long-term value creation.
ESG
Environmental, Social, and Governance (ESG) principles are deeply embedded in Honasas core values, shaping its commitment to sustainability, community development, and ethical governance. This purpose-driven philosophy extends across all brands, products, and operations, reflecting a long-term focus on creating meaningful impact. Initiatives like Plant Goodness underscore Honasas efforts to lower its carbon footprint through large-scale tree plantation, with geo-tagging implemented for transparency and accountability. As a plastic-positive organisation, Honasa also recycles more plastic than it consumes across its entire product portfolio. The company drives impactful initiatives also through its younger brands like The Derma Co., Aqualogica, BBlunt, and Dr. Sheths, focusing on education, clean drinking water access, upskilling, and rural healthcare, demonstrating its continued commitment to improving lives and supporting underserved communities.
Governance
Ethical governance lies at the heart of the Companys operations, reinforced by a seasoned Board and Independent Directors who uphold the highest standards of corporate governance. Oversight is further strengthened through dedicated committees for audit, risk management, and corporate social responsibility, promoting transparency and accountability across key business functions. Honasa also engages one of the Big Four firms for statutory audits and partners with a leading internal auditor to ensure a robust governance structure. Complementing this, a diverse workforce, nearly half of which comprises women, supported by strong systems and processes, further reinforces the Companys governance framework.
Collectively, these initiatives reflect Honasas strong focus on environmental sustainability, community well-being and inclusive growth, core pillars of its long-term ESG strategy.
Information Security and Data Privacy
The Company has established a thorough information security and data privacy framework designed to safeguard its technological infrastructure and customer information. This framework enforces stringent protocols for responsible data usage and strictly prohibits the sharing of customer data with external third parties, including third-party databases. To mitigate the risk of data breaches, the Company has implemented robust security measures such as firewall protection, VPN access, and two-factor authentication to prevent unauthorised access to its systems. Additionally, regular malware scans are conducted to proactively identify and address potential threats. The Companys organisational product suite features a Customer Data Platform, which enhances secure and efficient data management practices.
Risk Management
In response to significant growth and expanded business operations, Honasa has redeveloped the Risk Management framework to better fit with its strategic objectives. The Risk Management Policy has been updated with the roles and responsibilities of each stakeholder, criteria of risk prioritisation, along with assessment of existing and new risks that the company might have been exposed to. Strategic, Operational, Sectoral, Financial, information and cybersecurity-related risks that impact the organisation have been identified through a robust Enterprise Risk Management exercise.
Risk Management Committee (RMC), established by the Board, plays a critical role in monitoring and reviewing the development and implementation of the risk management framework to ensure its ongoing effectiveness. In addition, the Audit Committee provides supplementary oversight, focusing specifically on financial risks and controls. This structured approach underscores our commitment to proactive risk management and transparency, reflecting our efforts to safeguard the Companys interests and enhance long-term sustainability.
Honasa is committed to continuously strengthening its risk management systems and processes to keep pace with the rapidly changing business environment.
Key Enterprise Risks include
Litigation Risk: The Company faces risks of customer claims for product-related injuries, contractual disputes with partners/distributors leading to financial and reputational damage, and operational disruptions from using unlicensed software, which may result in legal issues and negative publicity.
Security Breaches and Cyberattacks:
It includes deliberate attempts by unauthorised individuals or entities to gain access to sensitive information, disrupt operations, or cause damage to computer systems, networks, or digital assets of an organisation.
Unauthorised Product Distribution:
It refers to the risk of the Companys discarded products/expired products being sold again in the market at lower prices by recycling vendors, impacting brand reputation and price hygiene.
Brand Stagnancy due to Changing Consumer Preferences: Situations where the brand may experience a slowdown or halt in growth, relevance, or market influence to meet the evolving needs, tastes, values, or expectations of consumers.
Dependence on Third-party Manufacturers: Dependence on single-source procurement and geographically concentrated TPMs increases supply chain vulnerability, and financial instability or insolvency of a TPM can lead to disruptions, revenue loss, and operational risks.
Distribution Partner Selection and Appointment: Inadequacies in distribution partner evaluation while onboarding would impact the sales strategy execution, price hygiene and channel conflicts.
Credit Risk: In the offline channel, credit risk would impact cash flows, increase collection costs and bad debt provisioning.
Higher Inventory Levels for Company and Distribution Channels: It refers to potential increased inventory levels at company warehouses and channel partner locations caused by inaccurate demand forecast, slow-moving products and supply chain inefficiencies.
Leadership Attrition and Talent Retention: This refers to the potential negative impact on an organisation when key leaders and talented employees leave the Company. Leadership attrition can disrupt strategic direction, weaken organisational stability, and lead to a loss of institutional knowledge.
Unsuccessful New Product and Brand Launches: This refers to the potential negative impact on a Company when new products or brands fail to meet market expectations or achieve projected sales targets.
Ethics, Compliance, Legal and Regulations: These refer to the potential challenges and consequences arising from ethical breaches, non-compliance with laws and regulations, or failure to adhere to industry standards.
Risk Mitigation and Future Direction:
The Company has defined mitigation plans against each of the key risks. These risks are continuously monitored and periodically reported to the Board and RMC to ensure effective risk management and mitigation.
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
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