Mamaearth parent proposes ₹3-per-share dividend, its first ever, after record profit in Q4
The board of directors of Honasa Consumer, the parent company of Mamaearth, Aqualogica and The Derma Co, has approved the final dividend distribution. ₹3 per share, after posting record quarterly net profit for the first time ₹69.4 crore in the March quarter, up nearly 178% on a consolidated basis compared to the same period in the previous year.
almost ₹The proposed dividend payment of Rs 98 crore, which is subject to shareholders’ approval at the annual general meeting, accounts for around 51% of Honasa’s FY26 standalone net profit, according to filings with stock exchanges. The company’s revenue from operations increased by 23% annually. ₹657 crore in the March quarter.
Net profit of Gurugram company rises in FY26 ₹200 crore ₹72.6 crore in the previous year, while operating income increased by a modest 15% YoY. ₹2,391 crore was achieved thanks to the strong performance of young brands such as The Derma Co and Aqualogica.
Varun Alagh, co-founder and chief executive officer of Honasa, said in Thursday’s Q4 earnings call: “We delivered over 20% consecutive growth in Q26, making it our highest ever quarter in terms of both revenue and EBITDA. This year we also declared our first dividend, reflecting our confidence in the long-term strength and direction of the business.”
New brands are leading the way
Younger brands such as Dr Sheth’s, Staze and Bblunt grew by 40% respectively, with The Derma Co and its newest addition, Reginald Men, leading the way. Derma Co currently has a “double-digit EBITDA profile”, while Reginald Men, acquired in December 2025, has achieved annualized sales rate (ARR). ₹100 crore while doubling the annual revenue.
Honasa’s flagship brand, Mamaearth, grew in the mid-teens during the quarter. The brand also saw its market share in key categories like facial cleansers and shampoos grow by up to 120 basis points last year.
Mamaearth’s direct distribution model, which has led to higher expenses and lower margins for over six quarters, is now finally bearing fruit, with nearly 120,000 outlets billing directly through distributors during FY26.
“Derma Co and Mamaearth are both in the double-digit EBITDA range and we anticipate margin trajectories to improve in the future. We expect growth in the high teens over the next five years,” Alagh said.
‘Price increases are no longer expected’
Alagh told analysts that throughout the year Honasa implemented price increases across categories to offset input cost increases caused by the US-Iran war and did not expect another increase anytime soon. “We anticipated some crude impact due to the war scenario and implemented competitively calibrated price increases. We do not expect further price increases. What we are doing needs to cover cost inflation for now,” Alagh said.
Investments The company said that throughout the year, technology, particularly AI-powered content systems and distribution infrastructure, “began to be reflected in stronger execution quality.”
Honasa’s board also approved the reappointment of former chief financial officer Subramaniam Somasundaram. Exchange applications showed that Titan Company Ltd had been acting as an independent director for five years.
Honasa’s shares closed about 1.4% higher on Thursday. ₹361.70 on NSE.
