Quick Take
- Honasa Consumer posted a record profit of Rs 90.45 crore in Q1 FY27, up 119% from a year ago.
- Revenue from operations rose 27% to Rs 755.95 crore, its highest-ever quarterly figure.
- The Derma Co. crossed Rs 1,000 crore in annualised net sales, a fresh milestone for the group.
Honasa Consumer, the parent of Mamaearth, reported its highest-ever quarterly profit of Rs 90.45 crore for the June 2026 quarter. That is up 119% from Rs 41.33 crore a year earlier.
Revenue from operations rose 27% year-on-year to Rs 755.95 crore, according to the company’s unaudited consolidated results filed with the stock exchanges on August 13. The year-ago figure was Rs 595.25 crore.
The company sequentially grew too. Profit rose about 30% from Rs 69.44 crore in the March quarter. Revenue climbed about 15% from Rs 657.08 crore.
Both the yearly and quarterly views point the same way. This is a clean quarter for the Gurugram-based beauty and personal care firm.
Varun Alagh is chairman, chief executive and co-founder of Honasa Consumer. He founded the company in 2016 with his wife Ghazal Alagh.
“Q1 has reinforced that the strategy is working,” Alagh said. He added that focus categories grew more than 35% and that demand strengthened across General Trade, Modern Trade and eCommerce.
What drove Honasa’s record quarter?
Operating leverage did the heavy lifting. Operating earnings before interest, tax, depreciation and amortisation reached about Rs 110 crore. A year ago that figure was about Rs 46 crore.
The margin on that measure rose to about 14.6% from 7.7%. EBITDA means earnings before interest, tax, depreciation and amortisation.
Total income for the quarter, including Rs 22.51 crore of other income, stood at Rs 778.46 crore. Total expenses rose to Rs 659.27 crore from Rs 563.55 crore a year earlier.
The cost of traded goods rose to Rs 240.24 crore from Rs 170.62 crore. Employee benefit costs increased to Rs 66.38 crore from Rs 60.38 crore. Other expenses, the largest line, rose to Rs 350.32 crore from Rs 317.66 crore.
Focus categories carried the growth. Mamaearth itself grew in the high teens. The group’s younger brands grew more than 40%.
Which brands hit new milestones?
The Derma Co. crossed Rs 1,000 crore in annualised net sales value during the quarter. Its face cleanser business alone exceeded Rs 200 crore in annual recurring revenue, or ARR.
Mamaearth notched brand-level wins too. Its Rice Dewy Bright Face Wash became the brand’s leading face cleanser. Its Rosemary range became the second hair-care ingredient after Onion to cross Rs 100 crore in ARR.
Honasa also widened its shelf presence. Its products reached about 300,000 FMCG retail outlets by the end of the quarter. Both General Trade and Modern Trade grew more than 40%.
The company entered a new category as well. It launched a fragrance brand called FIKN. That adds to a portfolio that already spans skincare, hair care and colour cosmetics.
| Metric | Q1 FY27 | Q1 FY26 |
|---|---|---|
| Revenue from operations | Rs 755.95 Cr | Rs 595.25 Cr |
| Consolidated PAT | Rs 90.45 Cr | Rs 41.33 Cr |
| EBITDA | About Rs 110 Cr | About Rs 46 Cr |
| EBITDA margin | About 14.6% | 7.7% |
| Total expenses | Rs 659.27 Cr | Rs 563.55 Cr |
Where does Honasa’s M&A push stand?
Honasa keeps buying to grow. It completed the purchase of a 95% stake in BTM Ventures in January 2026. BTM Ventures owns the men’s personal care brand Reginald Men.
That deal is already paying off. The company said BTM Ventures has since crossed Rs 150 crore in ARR. It has more than doubled in size since the acquisition.
A bigger deal is still pending. Honasa’s board approved buying a 58% stake in nutraceuticals firm Fluence Pharma in June. The enterprise value is about Rs 135 crore.
That transaction had not closed at the time of the Q1 results. Honasa said it remained subject to closing adjustments and conditions precedent. So it had no impact on the June-quarter numbers.
Honasa plans to buy the rest of Fluence Pharma later. The remaining 42% will come in two tranches. That will happen over the five to seven years after the first deal closes.
What does this mean for Honasa’s turnaround?
The recovery now looks durable. Honasa slipped to a loss of Rs 19 crore in the second quarter of FY25. It has climbed steadily back since then.
This quarter is the clearest proof yet. Profit has more than doubled year-on-year for two straight readings. Margins have nearly doubled on the EBITDA line.
The offline engine matters most here. For years Honasa leaned on online sales. The 40%-plus growth in General Trade and Modern Trade shows the physical push is landing.
StartupFeed Insight
The number that matters is not the Rs 90 crore profit. It is the EBITDA margin at 14.6%, up from 7.7%. That doubling shows the fix is structural, not a one-off. Honasa has moved from buying growth with ad spend to earning it through mix and distribution. Watch The Derma Co. next. At Rs 1,000 crore annualised, it is now big enough to carry the group if Mamaearth’s high-teens growth slows. Expect Honasa to report a full-year FY27 profit above Rs 300 crore if these margins hold through the festive quarters.
— Avinash Mishra, Business Correspondent
What this means for you: If you run a D2C brand, Honasa’s quarter is a signal that offline distribution, not just ad-driven online sales, is where margin recovery now comes from.
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Disclaimer: This article is for information only and is not investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. Please speak to a SEBI-registered advisor before investing.
