Mamaearth-parent Honasa posts Rs 1,500 Cr revenue in FY23


Honasa Consumer Ltd, the parent firm of D2C brands such as Mamaearth, The Derma Co, and BBlunt, posted a substantial growth in FY23 with a revenue surge of 58.3%. However, profits of the company dwindled in the last fiscal year.

Mamaearth-parent Honasa’s revenue from operations grew 58.3% to Rs 1,493 crore in FY23 from Rs 943 crore in FY22, according to its consolidated financial statements filed with the Registrar of Companies.

Financials FY23


Operating Revenue

Total Expenses

Profit / Loss

Amount in ₹ Cr

95.4% of collections came from domestic sales which increased by 53% while the rest of the operating income is from export services. The company also made Rs 22.5 crore (non-operating) from interest and gain on sale of investment.

As is the case with several D2C startups, advertisement continues to be a big expense. For the Mamaearth-parent, this cost accounted for 35.3% of the overall expenditure and increased 35.5% to Rs 530 crore in FY23. In line with the scale, expenditure on the cost of material rose 58% to Rs 447 crore in FY23.

Taking into account other overheads such as employee benefits, information technology, transportation, legal fees, and commissions paid to agents, the overall expenditure stood at Rs 1,502 crore, which is 59.4% up from Rs 942 crore in the previous fiscal year. Check TheKredible to see the detailed expense breakup.

Expenses Breakdown

₹ 942 Cr
To access complete data, visit
View Full Data
₹ 1502 Cr
To access complete data, visit
View Full Data
  • Cost of material consumed
  • Advertising promotional expenses
  • Information technology expenses
  • Transportation cost
  • Legal and professional fees
  • Commission paid to sole selling agents
  • Others

As evident from the numbers, Honasa’s overall cost surge outpaced the revenue growth. And unsurprisingly, this affected the company’s profits too. 

To put this into perspective, profits dwindled by 71.4% to Rs 4 crore in FY23 from Rs 14 crore in FY22. It’s worth noting that we have excluded the exceptional item of Rs 154.6 crore towards the impairment loss on goodwill and other intangible assets while calculating profits.

Honasa’s ROCE and EBITDA remained positive at 2.94% and 2.98%, respectively, during FY23. On a unit level, it spent Rs 1.01 to earn a rupee of operating revenue.


FY22 FY23
EBITDA Margin 3.36% 2.98%
Expense/₹ of Op Revenue ₹1.00 ₹1.01
ROCE 3.07% 2.94%

The company is set to launch its initial public offering (IPO) on October 31, according to the company’s red herring prospectus (RHP) filed with the Securities and Exchange Board of India (SEBI). The firm will make a pre-IPO placement on October 30 while the public issue will close on November 2.

MamaEarth also revealed its quarterly results for Q1 FY24 during which it registered Rs 464.49 crore in revenue from operations. The company posted a profit after tax of Rs 24.3 crore during Q1 FY24. Its EBITDA margin stood at 8.77% in the first quarter of the current financial year.

While Q1 results would put it on course for another 15-20% growth in the current year, the fact remains that IPO plans have probably kept the firm more conservative than usual in terms of spending for growth, and to stay profitable. Post IPO, that could change yet again, as the firm chases growth with the IPO proceeds, of which Rs 365 crore is meant to come to the firm.  The other option, to think that this is business as usual and the firm will focus on margin improvement going forward, seems much less likely frankly.

About Author

Send Suggestions or Tips