The Mamaearth business model earns money by selling skincare, haircare and personal care products under a portfolio of brands, which its parent Honasa Consumer designs and markets while contract manufacturers produce them, through online channels and a growing offline network of general trade and modern trade. Honasa reported FY26 net revenue of about ₹2,392 crore and its highest-ever profit, roughly ₹200 crore. Several figures differ between sources, which I’ve flagged.
Quick Facts
| Metric | FY25 | FY26 |
|---|---|---|
| Net revenue | ₹2,067 crore | ₹2,392 crore, up about 16% |
| EBITDA | ₹68.5 crore | ₹236 crore |
| EBITDA margin (reported) | 3.3% | 9.9% |
| Profit after tax | About ₹72 crore | About ₹200 crore, up about 175% |
| Online share of revenue | 81% in FY21 | 68% in FY26 |
| Q1 FY27 revenue | ₹595 crore | ₹756 crore, up 27% |
The Short Answer
Honasa is a house of brands that owns demand and outsources production.
- Mamaearth began as a digital-first brand and later expanded into offline retail, according to Wikipedia
- Its “house of brands” strategy added The Derma Co., Aqualogica, Staze 9to9, BBlunt, Dr. Sheth’s, Luminéve and Reginald Men
- R&D and quality control stay in-house, while large-scale production is outsourced to third-party contract manufacturers, according to Founderpin
- That asset-light approach lets the company scale without heavy factory overheads
Where the Revenue Comes From
Product sales through two routes.
- Online: direct sales through its own app and website, plus marketplaces and quick commerce
- Offline: general trade (kirana stores) and modern trade (pharmacies and malls)
- Online’s share of revenue fell from 81% in FY21 to 68% in FY26, according to a Markhub24 summary of company disclosures
- The Derma Co. is still about 80% online and 20% offline, with a presence in around 50,000 general trade outlets, according to the Q1 FY27 earnings call
The Brands
The portfolio is widening beyond Mamaearth.
- Mamaearth: returned to growth in the teens in FY26, and the company reports offline value market share of 6.5% in face cleansers and 2.3% in shampoo as of March 2026, citing NielsenIQ
- The Derma Co.: annualised revenue run rate of ₹750 crore at the end of FY26, with a third ₹100 crore category in face cleansers, and the Q1 FY27 call highlights scaling it to a ₹1,000 crore brand
- Aqualogica: run rate of around ₹150–200 crore
- Dr. Sheth’s: above ₹150 crore in revenue
- BBlunt: annualised run rate of ₹100 crore, after being acquired from Godrej Consumer Products
The Profit Turnaround
Margins rose sharply from a low base.
- EBITDA rose from ₹685 million to ₹2,362 million, and the margin from 3.3% to 9.9%, according to the research table
- Other summaries quote about 11%, and Founderpin cites 10.9% against 5% in FY25, so reported and normalised margins differ
- Profit after tax was about ₹200 crore, the highest in the company’s history, and the board recommended its first dividend, according to Markhub24
- Cash generated from the business was about ₹134 crore, and the working capital cycle was negative 14 days
- Net margin, by my arithmetic, was about 8% of revenue
Why Margins Improved
Several levers moved together.
- A better mix of profitable direct-to-consumer channels and younger brands lifted gross margin, according to management on the Q1 FY27 call
- Channel mix, performance marketing efficiencies and procurement savings are cited as sources of about 30% cumulative leverage in a research note
- Management brought Mamaearth back to mid-teens growth after a period of distribution realignment in 2025, according to the same note
The Latest Quarter
Momentum continued into FY27.
- Q1 FY27 revenue from operations rose 27% to ₹755.94 crore, according to Indian Retailer, while management cited 32% growth, probably on a like-for-like basis, so check which measure is used
- Volume growth was 30.5%, EBITDA was around ₹110 crore and PAT about ₹90 crore, more than double a year earlier
- Transcripts quote a normalised EBITDA margin of about 21%, which I couldn’t reconcile with ₹110 crore on ₹756 crore, roughly 14.5% by my arithmetic
- The CFO noted Q2 typically sees a sequential dip from the loss of summer seasonality
The Five-Year Plan
The targets are ambitious.
- Honasa aims to reach ₹5,500 crore of revenue by FY 2030-31, with Mamaearth beyond ₹2,000 crore and The Derma Co beyond ₹1,500 crore
- It wants at least two more brands above ₹500 crore and a 15% EBITDA margin
- An analyst’s FY27 estimate is revenue of ₹2,902 crore, but those are forecasts, not company results
Where the Sources Disagree
A few details differ.
- Q3 FY26 growth is quoted as 16% and 21.3% in different places, and revenue as ₹602 crore
- Q1 FY27 growth is 27% and 32% depending on the basis
- The EBITDA margin for FY26 is 9.9% in one table and around 11% in others
- For primary numbers, check Honasa’s filings with the exchanges
Risks
The model has weak spots.
- Reliance on performance marketing and digital channels, with online still two-thirds of sales
- Dependence on contract manufacturers
- Competition from large FMCG companies and other beauty brands
- High valuation concerns raised by some analysts
FAQs
How does Mamaearth make money?
A. By selling skincare, haircare and personal care products, made by contract manufacturers, online and through offline retail, under Honasa Consumer’s brands.
What was Honasa’s FY26 revenue?
A. About ₹2,392 crore, up roughly 16%, with a profit of about ₹200 crore, according to the research table and Markhub24.
How much of the business is online?
A. 68% in FY26, down from 81% in FY21, according to Markhub24, as offline distribution has expanded.
Which brands besides Mamaearth matter?
A. The Derma Co., with a run rate of about ₹750 crore at FY26 end, plus Aqualogica, Dr. Sheth’s and BBlunt.
