Honasa Consumer Limited, the company behind brands like MamaEarth and Derma Co., posted solid financial results for Q2 FY26. They reported a profit of ₹39 crore on operating revenue of ₹538 crore. This is a turnaround for a closely watched D2C company, which proves the D2C model in India is maturing and becoming more profitable.
According to the financial reports filed with the National Stock Exchange (NSE), Honasa’s revenue grew 16.5% year-over-year, from ₹462 crore in Q2 FY25 to ₹538 crore in Q2 FY26. Including ₹20 crore in non-operating income, the total quarterly revenue was ₹558 crore. In the first half of the year, operating revenue rose 12% to ₹1,133 crore, compared to ₹1,016 crore in the first half of FY25.
This quarter was a turning point for India’s largest publicly traded D2C brand. MamaEarth reported a profit after tax of ₹39 crore, bouncing back from a loss of ₹18.56 crore in Q2 FY25.This shows the company’s operating efficiency has gotten better, and the D2C business model in India is getting stronger. In the six months leading up to September 2025, Honasa’s profit increased 3.7X, reaching ₹80.5 crore, from ₹21.6 crore the year before.
Even with growth, Honasa kept expenses in check. Procurement costs, making up 32% of total expenses, rose from ₹144 crore in Q2 FY25 to ₹159 crore. Employee costs went up 18% to ₹60 crore, but marketing, legal, rent, and other overheads decreased 9% year-over-year. As a result, total expenses remained almost flat at ₹505 crore. The company spent 94 paise to earn one rupee of revenue, which is a good sign for its gross margin and operating leverage. This is a key shift for a VC-backed D2C brand aiming for lasting profits.
Honasa continued its expansion this quarter by acquiring a 25% stake in Couch Commerce Pvt Ltd, which owns Fang Oral Care, for up to ₹10 crore. This move strengthens Honasa’s position in India’s rapidly growing D2C oral care market. This fits into the D2C acquisition trends of 2025, where beauty and personal care brands are consolidating consumer categories that are growing quickly.
MamaEarth, once a leading example of India’s new D2C startups, is now becoming a benchmark for premium D2C brands in India. They’ve scaled across online, offline retail, marketplaces, quick commerce, and modern trade. With its omnichannel expansion strategy, more efficient supply chain, and strong brand equity, the company continues to lead in the $20+ billion Indian beauty and personal care market.
At the close of trading on Wednesday, Honasa shares were at ₹283, giving the company a valuation of ₹9,238 crore ($1 billion). With growing profits, controlled spending, and ongoing brand expansion, MamaEarth’s financial performance shows it’s one of India’s fastest-growing D2C brands and a major player in the D2C industry.
