Honasa Consumer, the parent company of D2C brands including Mamaearth, BBlunt, Dr Sheth’s and The Derma Co, will realign its playbook with an increased focus on new categories such as oral care and premium skincare to drive the next phase of growth, its co-founder and chief executive officer (CEO) Varun Alagh said during the September quarter (Q2 FY26) earnings call.
“We are seeing the rise of oral beauty that is happening in developed markets. And over the next decade, we expect this to shape in India as well. There is a lot of premiumisation potential in this category… And it’s not a small market, we believe this to be a $700 million opportunity by 2030,” the Mamaearth founder said.
In a separate exchange filing, the beauty and personal care company said it has picked up a 25% stake in Fang Oral Care for Rs 10 crore. Fang primarily sells toothpastes and teeth-whitening products. As of September 2025, the premium oral care brand had reached an annual revenue run rate of Rs 7 crore.
When asked if Mamaearth is eyeing further mergers and acquisitions in the oral care space to expand its presence, Alagh said the company would not like to have multiple brands operating in this category. Explaining further, he said clean-label and whitening are the core partition segments within this space, where Fang already has a strong presence.
Project Neev Evolves
In the March quarter of the fiscal year 2023-24 (Q4 FY24), Honasa revamped its distribution approach with the introduction of Project Neev, transitioning to direct distribution in 50 cities and reducing its dependency on super stockists. While the structural change dented the company’s revenue in subsequent quarters, the company witnessed a revival in Q2 FY26.
Revenue from operations rose 16.5% to Rs 538 crore during the quarter under review, up from Rs 462 crore in Q2 FY25. It is pertinent to mention that the Flipkart Group introduced a new settlement-based pricing policy for marketplace sellers like Honasa in March this year.
In the previous model, Flipkart sent an invoice to sellers for logistics and fulfilment costs, an expense that was reflected in their books. However, this cost is now being deducted directly from revenue due to the change in settlement.
On a like-for-like basis, adjusted assuming there was no change in settlement, Honasa’s operating revenue stood at Rs 566 crore during the September quarter, reflecting a 22.5% year-on-year (YoY) growth, the company said in an investor presentation.
In the post-earnings call, the Mamaearth CEO revealed that 80% of the company’s distribution is now handled by its network of direct distributors. “Last year same time, our contribution was two-thirds, and the direct distribution contribution was one-third. Today, 80% of the business is actually coming from direct distributor contribution. That’s a change which has been hard but necessary, and forms a foundation for our growth of multiple brands…
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