Mamaearth Parent Honasa Eyes Over 30% NSV Growth in Q2 FY27

Key takeaways

• Honasa Consumer expects net sales value (NSV) growth in the early thirties year-on-year in Q2 FY27.
• The company said growth is being supported by broad-based traction across its focus categories and brands.
• Mamaearth, its largest brand, is expected to deliver high-teens NSV growth.
• Honasa’s younger brands are expected to grow at around mid-forties year-on-year.
• Offline channels, particularly General Trade and Modern Trade, are expected to remain major growth drivers.
• Online sales are also expected to maintain their growth momentum.
• Honasa expects an early double-digit operating margin in Q2 FY27, with strong year-on-year improvement.
• The update is provisional and is subject to limited review by statutory auditors.
• Q2 FY27 financial results will be released after approval by the company’s board.

Honasa expects another strong quarter

Honasa Consumer, the parent company of Mamaearth, expects its net sales value to grow in the early thirties year-on-year during the second quarter of FY27.

The company disclosed the outlook in its quarterly operating update for the period ended September 30, 2026, saying the expected growth is being driven by broad-based traction across its focus categories and brands.

The update suggests that the recovery of Mamaearth is continuing while Honasa’s newer brands are growing considerably faster.

The company also expects profitability to improve, with an early double-digit operating margin during the quarter and strong year-on-year gains.

Importantly, these are provisional operating estimates rather than final financial results. Honasa said the update is subject to limited review by its statutory auditors and that detailed Q2 FY27 financial information will follow after board approval.

What is NSV and why does it matter?

NSV stands for net sales value.

It broadly represents the value of products sold after taking account of factors such as discounts, returns and other deductions from gross sales.

For a consumer company such as Honasa, NSV growth can provide a useful view of underlying brand and product demand because it focuses on the value generated from actual product sales rather than simply the gross value of merchandise moving through different channels.

Honasa’s early-thirties NSV growth expectation therefore indicates that the company sees a substantial acceleration in the value of products sold during Q2.

The figure is particularly significant because the growth is expected to come across multiple brands rather than from Mamaearth alone.

Mamaearth expected to grow in the high teens

Mamaearth remains Honasa’s largest brand and is expected to record high-teens year-on-year NSV growth during Q2 FY27.

The company attributed the expected performance to increasing brand affinity and a wider offline footprint.

That is important because Mamaearth had faced a period of slower growth as consumer preferences shifted and the brand worked through changes in its product, pricing and distribution strategy.

The current trajectory indicates that the brand’s recovery is becoming more established.

Honasa has been focusing on expanding Mamaearth beyond its digital origins and strengthening its presence across physical retail channels.

The company now expects that strategy to continue supporting growth.

Younger brands are growing much faster

The more striking number in the Q2 update is the expected performance of Honasa’s younger brands.

The company expects this group to record around mid-forties year-on-year NSV growth during the quarter.

The portfolio includes:

• The Derma Co
• Aqualogica
• BBlunt
• Dr. Sheth’s
• Staze
• Lumineve
• Reginald Men

The acceleration of these brands is strategically important because Honasa has been trying to build a portfolio that is less dependent on a single flagship brand.

Mamaearth remains the largest contributor, but faster-growing businesses can increasingly become meaningful contributors to the group’s overall growth as they scale.

The latest update indicates that this diversification strategy is gaining traction.

Why the younger brands matter

Honasa’s business was initially strongly associated with Mamaearth.

That created both an advantage and a risk.

A successful flagship brand can rapidly establish a consumer company, but excessive dependence on one brand can make overall growth vulnerable if consumer demand for that brand slows.

Honasa has therefore invested in developing multiple beauty and personal-care brands covering different consumer needs.

The Derma Co targets skincare and dermatology-oriented products, Aqualogica focuses on skincare, BBlunt operates in hair care, while Dr. Sheth’s is positioned in skincare.

The newer additions broaden the company’s addressable consumer base.

If these businesses continue growing at rates in the mid-forties, their contribution to Honasa’s overall revenue mix should increase over time.

That could make the company structurally more diversified.

Offline distribution is driving the expansion

One of the clearest themes in Honasa’s latest update is the growing importance of offline distribution.

The company said both General Trade and Modern Trade are expected to post strong growth during Q2 FY27.

General Trade refers broadly to traditional retail outlets, including smaller independent stores.

Modern Trade includes organised retail chains and larger retail formats.

Honasa said General Trade growth is being supported by deeper direct distribution.

In Modern Trade, the company pointed to sharper execution at the point of sale.

The significance goes beyond simply adding more stores.

A beauty and personal-care brand can gain substantially from physical availability because consumers may discover a product online but eventually purchase it through a nearby retail outlet.

Expanding offline reach therefore gives Honasa another way to increase consumer access and improve brand visibility.

Online growth remains important

The company’s growth strategy is not shifting away from online channels.

Honasa expects online sales to maintain their growth momentum during Q2.

That is important because the company’s brands were built around a digital-first model.

Its ability to combine e-commerce with offline distribution is now becoming a central part of its growth strategy.

Rather than choosing between online and physical retail, Honasa is increasingly operating an omnichannel model.

This allows the company to reach consumers through marketplaces, direct digital channels, modern retail stores and traditional retail outlets.

The model can also provide more opportunities to introduce new products and test consumer response.

The growth is broad-based

Honasa’s latest update does not point to one particular product or category driving the entire quarter.

Instead, the company said the expected performance is supported by broad-based traction across its focus categories and brands.

That distinction matters.

If growth were concentrated almost entirely in one brand, the overall early-thirties NSV figure would carry greater concentration risk.

The combination of high-teens growth at Mamaearth and mid-forties growth among younger brands suggests that multiple parts of the portfolio are contributing to the expansion.

This is also consistent with Honasa’s stated strategy of developing a multi-brand beauty and personal-care platform.

Profitability is improving alongside growth

Honasa is also signalling an improvement in profitability.

The company expects to deliver an early double-digit operating margin during Q2 FY27, alongside strong year-on-year improvement.

That is important because rapid revenue growth can be less valuable if it requires disproportionately high marketing expenditure or heavy discounting.

Honasa has been working to improve operating leverage as its brands scale.

Higher sales can allow fixed costs to be spread across a larger revenue base, while stronger distribution can improve the economics of marketing and fulfilment.

The latest operating-margin expectation suggests the company believes it is beginning to capture some of those benefits.

However, the exact margin and profit numbers will only be known when the audited or formally approved quarterly results are released.

Q1 FY27 provided a strong starting point

The Q2 outlook follows a strong first quarter.

Honasa reported ₹755.94 crore in revenue from operations in Q1 FY27, up 27% from ₹595.25 crore in the corresponding quarter of FY26.

Consolidated net profit rose to ₹90.45 crore, more than double the ₹41.32 crore reported a year earlier.

The company’s total income increased 25.73% year-on-year to ₹778.45 crore.

Honasa also reported EBITDA of approximately ₹110 crore for the quarter, more than double the year-earlier level.

The company said its focus categories grew by more than 35% in Q1, with stronger demand across General Trade, Modern Trade and e-commerce.

That performance created a strong base for the second quarter.

From Mamaearth recovery to portfolio growth

The latest update indicates that Honasa’s story is becoming broader than the recovery of Mamaearth.

Mamaearth’s return to high-teens growth remains important because of its size.

But the mid-forties growth expected from younger brands could eventually become equally important for the company’s long-term trajectory.

This is the transition investors will be watching.

A consumer company can achieve a temporary acceleration by fixing one underperforming flagship brand.

Sustained high growth is more difficult.

It requires multiple brands to consistently attract new customers, launch successful products, maintain pricing power and expand distribution.

Honasa’s latest numbers suggest it is moving toward that multi-brand model.

The Flipkart accounting adjustment matters

Honasa has previously highlighted an important change affecting comparisons of its reported revenue.

The Flipkart group changed its settlement mechanism for marketplace sellers, which affects how revenue is recognised by companies such as Honasa.

Because of this, the company has used adjusted or like-for-like comparisons for certain growth metrics.

This is important when interpreting the Q2 NSV figure.

The early-thirties growth expectation should not automatically be compared with reported revenue growth without understanding the accounting-base adjustment.

NSV and reported revenue are also not identical measures.

Investors should therefore wait for the detailed results and management commentary to understand how the operating growth translates into reported revenue and profit.

Honasa’s strategy is increasingly omnichannel

Honasa’s latest update reflects a broader change in India’s digital-first consumer companies.

Many brands that initially built their businesses through Instagram, their own websites and online marketplaces are now moving aggressively into physical retail.

The reason is straightforward.

Digital customer acquisition can become more expensive as competition increases.

Physical retail can provide access to consumers who may not discover the brand through online advertising.

For a scaled beauty company, the combination of both channels can create a much larger distribution opportunity.

Honasa’s emphasis on direct General Trade distribution and Modern Trade execution shows that offline expansion has become a central component of its growth strategy rather than simply an additional sales channel.

What investors should watch in the Q2 results

The operating update gives investors a strong preview, but several numbers will matter when the final results arrive.

The first is actual NSV and revenue growth.

The second is the performance of Mamaearth relative to the company’s high-teens expectation.

The third is whether younger brands can sustain growth around the mid-forties.

The fourth is the operating margin and whether profitability improves as quickly as sales.

The fifth is the contribution from General Trade and Modern Trade.

Finally, investors will want to see whether Honasa’s growth is being achieved without excessive promotional spending or deterioration in cash generation.

These factors will determine how sustainable the current acceleration is.

Why the Q2 update matters for Honasa

Honasa is at an important stage in its evolution.

The company has moved from being primarily identified with Mamaearth to building a broader beauty and personal-care portfolio.

That transition can create significant long-term value if the younger brands successfully scale.

It can also reduce the company’s dependence on the performance of a single brand.

The Q2 update provides early evidence that this strategy is working.

Mamaearth is expected to grow in the high teens, while the newer portfolio is growing substantially faster.

At the same time, offline distribution is strengthening and profitability is improving.

The combination is more important than any single growth number.

The bigger picture

Honasa’s early-thirties NSV growth expectation shows that the Mamaearth parent is increasingly operating as a multi-brand consumer platform rather than a single-brand digital startup.

Mamaearth’s recovery remains a critical part of the story, but the stronger performance of the younger brands may ultimately be more important for the company’s next phase.

The expansion into General Trade and Modern Trade also demonstrates how India’s digital-first beauty brands are evolving. The next stage of competition will increasingly depend on distribution scale, product innovation, brand loyalty and the ability to make both online and offline channels economically attractive.

The key question now is whether Honasa can convert its strong operating growth into durable profitability and cash generation.

Looking ahead

Honasa’s final Q2 FY27 results will provide the first complete picture of how the early-thirties NSV growth expectation translated into reported revenue, profit and margins. Investors will particularly watch whether Mamaearth maintains its high-teens trajectory and whether the younger brands sustain their mid-forties growth as their revenue bases expand.

If the company can maintain strong brand growth while improving operating margins, Honasa could enter the next phase of its development with a significantly more diversified portfolio. The combination of Mamaearth’s recovery, faster-growing younger brands and expanding offline distribution could become the foundation for a more durable growth story in India’s beauty and personal-care market.