Honasa Consumer, the parent company of beauty and personal care brands Mamaearth, The Derma Co. and Aqualogica, reported an 86.7% year-on-year increase in consolidated net profit to ₹73.25 crore for the September quarter of FY27. The company benefited from stronger sales growth, improving operating margins and increased demand across its product categories and distribution channels.
Revenue from operations rose 35.9% to ₹731.19 crore in Q2 FY27, compared with ₹538.06 crore in the corresponding quarter last year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) nearly doubled to approximately ₹93 crore, while the EBITDA margin expanded to 12.7% from around 8.8% a year earlier. Despite the strong annual growth, both revenue and profit declined sequentially compared with the June quarter.
Honasa Consumer Q2 FY27 Financial Results
Honasa reported a consolidated net profit of ₹73.25 crore for the quarter ended September 30, 2026, compared with ₹39.23 crore in Q2 FY26.
The company’s revenue from operations increased to ₹731.19 crore, representing growth of approximately 36% year-on-year. This was its highest quarterly revenue growth since its stock market listing in November 2023, according to The Economic Times.
The improvement in profitability was supported by revenue growing faster than expenses. Total expenses increased 29.1% to ₹652.4 crore, compared with approximately ₹505 crore in the year-ago quarter.
However, the company recorded a sequential decline in its financial performance. Net profit fell approximately 19% from ₹90.45 crore in Q1 FY27, while revenue from operations declined 3.3% from ₹755.95 crore.
| Financial metric | Q2 FY27 | Q2 FY26 | Year-on-year change |
|---|---|---|---|
| Revenue from operations | ₹731.19 crore | ₹538.06 crore | +35.9% |
| Consolidated net profit | ₹73.25 crore | ₹39.23 crore | +86.7% |
| EBITDA | Approximately ₹93 crore | ₹48.2 crore | +93.4% |
| EBITDA margin | 12.7% | Around 8.8% | Improved |
| Total expenses | ₹652.4 crore | Around ₹505 crore | +29.1% |
The figures show that Honasa improved profitability while expanding its sales. The slower growth in expenses compared with revenue helped strengthen operating performance.
EBITDA Margin Improves to 12.7%
One of the key developments in Honasa’s quarterly results was the improvement in operating profitability.
The company’s EBITDA increased 93.4% year-on-year to ₹93.2 crore from ₹48.2 crore. Its EBITDA margin expanded to 12.7%, compared with approximately 8.8% in Q2 FY26.
This improvement indicates that the company generated more operating earnings from each rupee of revenue than it did a year earlier.
Honasa attributed its performance to stronger execution across its product categories, improved distribution and a more favourable sales-channel mix. Greater contribution from profitable offline and quick-commerce-led business also supported margins.
The company has been working to improve profitability while expanding its portfolio of beauty and personal care brands. The latest results suggest that its sales expansion was accompanied by stronger operating efficiency.
However, EBITDA is different from net profit. EBITDA measures operating earnings before interest, taxes, depreciation and amortisation, while net profit reflects the company’s earnings after these expenses and other applicable items.
Focus Categories Grow More Than 40%
Honasa said its focus categories recorded revenue growth of more than 40% during Q2 FY27. These categories accounted for over 80% of the company’s overall business.
The company has been concentrating on products across skincare, haircare and other personal care segments, with an emphasis on expanding established categories and developing products that attract repeat purchases.
Its underlying volume growth stood at 31.3%, indicating that higher sales were supported by increased product volumes rather than relying only on price changes.
The company also highlighted continued demand for products such as face cleansers, shampoos, face serums and moisturisers.
This performance is important because Honasa operates a portfolio of brands targeting different consumer groups and price points. Stronger growth across its focus categories could help it expand beyond dependence on its flagship Mamaearth brand.
Mamaearth Maintains High-Teens Growth
Mamaearth, Honasa’s flagship brand, maintained revenue growth in the high teens during the quarter.
The brand also reported EBITDA margins in the mid-teens, indicating that it continued to contribute to the group’s profitability while expanding sales.
Mamaearth has built its presence in India’s beauty and personal care market through products in categories such as skincare, haircare, baby care and personal hygiene.
The company has continued introducing new products and collaborations to attract consumers. One example highlighted during the quarter was Mamaearth’s Kulhad Chai Tinted Lip Balm, developed in collaboration with Chaayos.
The brand’s continued growth is important for Honasa because Mamaearth remains a central part of its portfolio. Maintaining growth while protecting margins will be important as competition increases across India’s beauty and personal care market.
The Derma Co. Expands Its Retail Presence
The Derma Co. also continued its expansion during Q2 FY27.
The brand sustained profitable growth and expanded its distribution network to more than 65,000 retail outlets, according to the company’s quarterly update.
The Derma Co. focuses on skincare products positioned around active ingredients and specific consumer concerns. Its presence across online and physical retail channels allows it to reach customers through multiple purchasing formats.
Honasa’s wider strategy involves building individual brands with distinct product categories rather than depending on a single label.
The company’s younger brands collectively recorded revenue growth of more than 45% year-on-year. This group includes emerging businesses within its portfolio that are intended to create additional sources of future growth.
Offline Distribution Becomes an Important Growth Driver
Honasa initially developed much of its business through digital-first distribution. However, the company has increasingly expanded its presence in traditional retail and organised stores.
Its general trade distribution network reached approximately 3.2 lakh outlets during the quarter.
The company also reported more than 40% year-on-year growth in offtake through modern trade channels, which include supermarkets and organised retail chains.
Growth across different sales channels is strategically important because it reduces dependence on any single distribution platform.
| Distribution channel | Q2 FY27 performance |
|---|---|
| General trade | Approximately 3.2 lakh outlets |
| Modern trade | Offtake growth above 40% |
| The Derma Co. retail network | More than 65,000 outlets |
| Focus categories | Revenue growth above 40% |
| Younger brands | Revenue growth above 45% |
The expansion of physical distribution could help Honasa reach consumers who may not regularly purchase beauty and personal care products online.
It also provides the company with additional opportunities to improve product visibility and availability across smaller cities and local retail markets.
Honasa’s First-Half FY27 Performance
The company’s growth extended beyond the September quarter.
For the first half of FY27, revenue from operations increased 31.2% to approximately ₹1,487 crore from ₹1,133 crore in the corresponding period last year.
Consolidated net profit more than doubled to approximately ₹164 crore from ₹80.5 crore in H1 FY26.
These figures indicate that Honasa has maintained strong growth momentum across the first six months of the financial year.
The company’s ability to sustain this performance will depend on continued demand, product innovation, distribution expansion and cost management.
The Bigger Picture
Honasa’s Q2 FY27 results highlight the growing importance of profitability alongside revenue expansion in India’s beauty and personal care industry. The company recorded strong growth across its established brands, while its younger businesses and offline distribution network contributed additional momentum.
The improvement in EBITDA margin is particularly relevant because it suggests that Honasa is expanding its business while strengthening operating profitability. However, the sequential decline in revenue and profit shows that quarterly performance can fluctuate, making sustained growth over multiple quarters more important than a single strong result.
Looking Ahead
Honasa is expected to continue focusing on product innovation, expansion of its retail network and growth across its portfolio of brands. Maintaining Mamaearth’s high-teens growth while scaling The Derma Co. and its younger brands will be important for the company’s long-term strategy.
Investors will also monitor whether the improved EBITDA margin can be sustained as distribution, marketing and product development expenses increase. The next few quarters will show whether Honasa can translate its strong annual growth into consistent profitability and a larger presence across India’s beauty and personal care market.
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