The MamaEarth Q2 profit hit the headlines after its parent company, Honasa Consumer Ltd, reported a net profit of ₹39 crore for the quarter ended September 2025 (Q2 FY26).
This comes after a loss of around ₹18–19 crore in the same quarter last year.
This jump from loss to profit signals a meaningful recovery for the company and marks a critical milestone for MamaEarth as it strengthens its position in the competitive beauty and personal care market in India.
What’s Driving the Profit?
1. Revenue Growth
- Honasa’s revenue from operations rose about 16.5% year-on-year to roughly ₹538 crore for Q2.
- Some reports suggest revenue was around ₹566 crore on a like-for-like basis, which shows the company is improving scale.
2. Margin & Cost Discipline
- While cost of goods (procurement) rose (for example, to ~32% of total spend) and employee benefits also increased, marketing, legal & overhead costs actually fell ~9% year-on-year, which helped stabilise expenses.
- The company noted it took a hit of ~₹28 crore in revenue because of a settlement change (logistics/fulfilment cost re-classification) but this did not impact bottom-line profits.
3. Channel & Distribution Shift
- Honasa emphasised the shift from a super-stockist model to direct distributorship in major cities. In one article it reports that direct distributors accounted for nearly 80% of total revenue in the quarter, compared to 33% two years ago.
- Offline distribution expansion was also noted: general trade distribution (direct outlets billed) for H1 FY26 rose ~35%+ year-on-year.
4. Product & Category Focus
- MamaEarth focused more sharply on key categories (shampoo, face serum, sun-care, moisturiser, baby-care) after previously operating across ~24 segments.
- The company’s other brands (such as The Derma Co) continued to grow, and newer premium launches (for example Luminéve) were introduced, signalling a push into higher-end segments.
Why It Matters
- The turnaround demonstrates that MamaEarth is gaining traction after navigating distribution changes and market headwinds.
- For the Indian beauty & personal care sector, which is highly competitive and evolving rapidly, this performance positions Honasa/MamaEarth as a stronger player.
- Investor sentiment responded positively: the company’s shares reportedly surged ~9.3% in early trading following the results.
- The result also gives confidence that focusing on profitable growth (rather than just top-line expansion) is bearing fruit.
Remaining Challenges & Outlook
- Even though the quarter is strong, sustaining the growth will depend on how effectively Honasa/MamaEarth manages • evolving consumer behaviour • margin pressures • competition from both domestic and international brands.
- The company’s move into premium skincare and oral beauty (such as the stake in oral-care brand Fang Oral Care) suggests diversification, but these are still smaller parts of the business today.
- The change in revenue recognition (logistics/fulfilment cost reclassification) which hit ~₹28 crore, while not affecting profit this time, remains something to watch for future quarters.
Looking Ahead
For Q3 and beyond, focus areas for Honasa/MamaEarth likely include:
- Deepening offline distribution further while maintaining online strength.
- Growing newer brands and premium segments to add incremental revenue.
- Maintaining gross margin improvement and controlling overheads.
- Continuing to build brand strength in key categories while adapting to consumer shifts (for example towards clean beauty, ingredient-led products, sustainable brands).
- Monitoring competitive dynamics and ensuring differentiation.
Summary
The MamaEarth Q2 profit of ₹39 crore is a strong signal of revival. With revenue growth, cost discipline, smart distribution shifts and product focus, the parent company Honasa Consumer has demonstrated a rebound from a loss in the previous year. While challenges remain, this result provides momentum and reinforces the brand’s potential in a crowded beauty-care landscape.
