Honasa Consumer, the parent company of personal care brands like Mamaearth, The Derma Co., Aqualogica, BBlunt, and Dr. Sheth’s, has announced the grant of Employee Stock Options (ESOPs) worth approximately Rs 57 crore. The move aligns with the company’s long-term strategy to retain and reward its workforce amid continued business growth.
In a regulatory filing on Wednesday, Honasa Consumer said it has granted 24.16 lakh stock options under its Employee Stock Options Plan (ESOP) – 2018. The total value of the ESOPs is pegged at Rs 57 crore, calculated based on the company’s opening price on Thursday at Rs 232 apiece on the NSE.
According to the exchange filing, “The vesting of the above option is expected to happen over a period of 5 years linked to both tenure and Company performance.” Once vested, the granted options will allow employees to acquire an equivalent number of equity shares in the company.
This development comes on the back of Honasa’s strong Q3 FY25 financial performance. The company reported revenues of Rs 517.5 crore, registering a 5.9% year-on-year (YoY) growth compared to Rs 488.2 crore in Q3 FY24, driven largely by its emerging brand portfolio. Despite the revenue growth, Honasa posted a flat net profit of Rs 26 crore for the quarter, remaining unchanged from the same period last year. However, this marked a significant turnaround from a net loss of Rs 24.3 crore in Q2 FY25.
Honasa Consumer continues to build on its portfolio of direct-to-consumer and digital-first brands, a strategy that appears to be yielding positive topline results even in a competitive market.
The ESOP grant by Honasa follows a recent trend among India’s leading startups and new-age companies rewarding their employees with equity-based compensation. Just a day prior, Eternal (formerly Zomato Limited) announced the grant of 2.17 lakh stock options under ESOP 2014 and ESOP 2021, amounting to a total value of Rs 4.42 crore at the time of reporting.
Similarly, in March, logistics unicorn Delhivery approved the allotment of 11.79 lakh equity shares under its ESOP schemes. The allotment included 3.24 lakh shares under ESOP 2012, 6.89 lakh under ESOP II 2020, and 1.66 lakh under ESOP III 2020. This led to an increase in Delhivery’s paid-up share capital from Rs 74.44 crore to Rs 74.55 crore.
As the Indian startup and consumer tech ecosystem matures, ESOPs continue to be a critical tool for attracting and retaining top talent while aligning employee interests with long-term company performance.