Mamaearth parent proposes ₹3-per-share dividend, its first ever, after record profit in Q4

The board of Honasa Consumer, parent company of Mamaearth, Aqualogica and The Derma Co, approved a final dividend of ₹3 per equity share, its first ever, after posting a record quarterly net profit of ₹69.4 crore in the March quarter, up nearly 178% from the year-ago period on a consolidated basis.

At nearly ₹98 crore, the proposed dividend payout, which is subject to shareholder approval at the annual general meeting, comprises about 51% of Honasa’s FY26 standalone net profit, filings with the stock exchanges showed. The firm’s revenue from operations surged 23% year-on-year to ₹657 crore in the March quarter.

In FY26, the Gurugram company’s net profit soared to ₹200 crore from ₹72.6 crore the previous year, while operating revenue grew by a modest 15% year-on-year to ₹2,391 crore, helped by the strong performance of its younger brands such as The Derma Co and Aqualogica.

“We delivered three consecutive quarters of more than 20% growth, with Q4FY26 becoming our highest-ever quarter in both revenue and Ebitda. This year we also announced our first-ever dividend, reflecting the confidence we have in the long-term strength and direction of the business,” Varun Alagh, co-founder and chief executive officer of Honasa, said during the Q4 earnings call on Thursday.

New brands lead the charge

Younger brands, including Dr Sheth’s, Staze, and Bblunt, grew 40% sequentially, with The Derma Co and its newest addition Reginald Men leading the pack. The Derma Co currently has a “double-digit Ebitda profile” while Reginald Men, acquired in December 2025, hit an annualized run rate (ARR) of over ₹100 crore while doubling revenue year-on-year.

Mamaearth, Honasa’s flagship brand, grew in the mid-teens during the quarter. The brand also saw its market share in key categories, such as face cleansers and shampoos, increase by as much as 120 basis points over the past year.

Mamaearth’s direct distribution model, which resulted in higher expenses and dented bottom lines for more than six quarters, is now finally starting to bear fruit, with nearly 120,000 outlets billed directly through distributors during FY26.

“The Derma Co and Mamaearth are both in the double-digit Ebitda range and we foresee them to have improved margin trajectory in the future. Over the next five years, we expect growth in the high teens,” Alagh said.

‘No more price hikes anticipated’

During the year, Honasa implemented price hikes across categories to offset input cost hikes caused by the US-Iran war, and does not anticipate further hikes any time soon, Alagh told analysts. “We did foresee some crude impact because of the war scenario and implemented calibrated price hikes in line with the competition. We don’t expect further price increases. What we have done should be able to take care of cost inflation for now,” Alagh said.

Investments in technology during the year, particularly in AI-led content systems and distribution infrastructure, are “beginning to reflect in stronger execution quality”, the company said.

Honasa’s board has also approved the re-appointment of Subramaniam Somasundaram, the former chief financial officer of Titan Company Ltd, as an independent director for five years, exchange filings showed.

Honasa’s shares closed nearly 1.4% higher on Thursday to settle at ₹361.70 in the NSE.