Honasa Consumer (HONASA) Q4 24/25 earnings summary

Executive summary

• Achieved 13.3% YoY revenue growth in Q4, with FY25 consolidated revenue at INR 2,067 crore, up 7.7% YoY; focus categories (70% of brand) returned to double-digit growth in key channels.

• Young brands grew 30%+ YoY, with Derma Co achieving INR 100 crore ARR in offline channels; BBLUNT, Aqualogica, Dr. Sheth's, and STAZE also posted over 30% growth.

• Premiumization in hair care and core categories, especially in e-commerce and modern trade, drove growth.

• Audited standalone and consolidated financial results for FY25 were approved, with unmodified audit opinions.

• Appointment of CS Shashi Shekhar as Secretarial Auditor for five years, subject to shareholder approval.

Financial highlights

• Q4 FY25 revenue from operations: INR 534 crore (up 13% YoY); FY25 consolidated revenue: INR 2,067 crore (up 7.7% YoY); gross profit margin: 70.7% in Q4, 70.3% in FY25.

• Q4 FY25 EBITDA: INR 27 crore (5.1% margin); FY25 EBITDA: INR 69 crore (3.3% margin); PAT: INR 73 crore (3.5% margin).

• Generated INR 74 crore cash in Q4; free cash at year-end: INR 82 crore; cash and bank balances at March 31, 2025: INR 331 crore.

• Standalone and consolidated net profits for FY25 declined YoY; standalone: Rs 640.83 million, consolidated: Rs 726.87 million.

• Working capital cycle remains negative; Q4 UVG was 21.2%.

Outlook and guidance

• Targeting double-digit value growth and 250 bps EBITDA margin improvement in FY26, aiming to return to FY24 EBITDA levels by year-end.

• Premiumization trends in hair and skin care, suncare, and face serums expected to drive future growth.

• Project 'Neev' transition to a direct distribution model across top 50 cities to enhance efficiency.

• A&P spend expected to see leverage, with effectiveness driving a lower percentage of sales over time.

• Management does not expect material financial impact from ongoing legal disputes, supported by favorable court orders.