Strong Q3 fuels Mamaearth's push into men’s skincare

Bengaluru: Honasa Consumer Ltd, the parent of personal care brands Mamaearth, Aqualogica and Dr Sheth’s, said on Thursday it will double down on men’s skincare with the acquisition of D2C brand Reginald Men, betting on rising demand for products such as sunscreens and moisturisers among male consumers.

The firm announced on 11 December that it will acquire a 95% stake in Reginald through a secondary share purchase for ₹195 crore. The transaction is now complete, the firm said on Thursday.

“Reginald Men has been one of those brands that has fit perfectly into our men’s skincare hypothesis. It has done very well in the last two years and is currently the most searched sunscreen brand (per Google AdWords data),” Varun Alagh, co-founder and chief executive of Honasa, said during the third-quarter earnings call.

Honasa saw its profit after tax nearly double to ₹50 crore in the December quarter, from ₹26 crore in the year-ago period. Revenue from operations rose 16% to ₹601 crore during the period, up from ₹517 crore in the same quarter last year.

Total expenses increased marginally to ₹550 crore in Q3FY26 from ₹507 crore a year ago on account of a change in its direct distribution model which impacted inventory.

“Our shift to direct distribution has started to pay off strongly. Contribution from our direct distribution network has expanded to 80% (of revenue), and inventory holdings are now optimized at about 30 days, which is healthy for a complex inventory system like ours,” Alagh told analysts.

But with most of the transition complete, Honasa expects expenses to remain under control in the coming quarters.

Honasa had introduced a revamped distribution approach, dubbed Project Neev, in the March quarter of FY24, transitioning to a direct distribution model in the top 50 cities and reducing its dependency on super stockists.

The company said it will continue to expand its offline distribution network, having reached 270,000 retail outlets in India as of December 2025, according to its investor presentation. As of the third quarter of FY26, it had a total of 200 active direct distributors and a presence in more than 9,000 modern trade outlets at the end of the quarter.

While Honasa continues to explore emerging categories like teen cosmetics brand Staze and oral care brand Fang, it will sharpen its focus on its core categories, including face washes, sunscreens, and shampoos.

Annual recurring revenue from the younger brands in Honasa’s portfolio, including Aqualogica, The Derma Co and Dr Sheth’s, grew 25% year-on-year during the quarter, with The Derma Co delivering what the company described as a “standout” performance. “The Derma Co continues to deliver strong growth, hitting a double-digit Ebitda profile. It continues to drive innovation across categories such as shampoo and sunscreen,” Alagh noted.