Honasa Consumer Limited announced its financial results for the second quarter of fiscal year 2027, reporting a robust 36% year-over-year increase in net sales. The company also achieved a significant EBITDA growth, more than doubling its earnings and maintaining a solid 12.7% EBITDA margin. This performance was driven by volume growth, favorable channel mix shifts, and A&P efficiencies, with focus categories contributing over 80% of revenue.
Honasa Consumer Limited Q2 FY27 Earnings Highlights
Honasa Consumer Limited has announced strong financial results for the second quarter of fiscal year 2027 (ended September 30, 2026). The company reported a significant 36% increase in net sales compared to the same period last year. This growth was primarily driven by volume, reflecting increased consumer demand and effective market strategies.
EBITDA Growth and Margin Improvement
The company demonstrated substantial growth in profitability, with EBITDA more than doubling during the quarter. Honasa maintained a healthy 12.7% EBITDA margin, underscoring its operational efficiency and cost management strategies. Gross margin profile remained strong at 70%, attributed to effective cost management and strategic price adjustments, especially in response to crude price pressures.
Drivers of Growth
Several factors contributed to this impressive performance. A&P (Advertising and Promotion) efficiency and favorable mix shifts towards more profitable channels like offline and Quick Commerce contributed to an estimated 250-270 basis points delta in EBITDA improvement compared to the previous year. Operating leverage also unlocked an additional 110-140 basis points in EBITDA.
Focus Category Strategy
The company’s long-standing strategy of focusing on specific growth categories continues to yield positive results. These focus categories now contribute over 80% of the total revenue and grew by more than 40% independently. The addressable market for these focus categories is estimated at INR 50,000 crores, and Honasa holds approximately 5% market share, indicating significant headroom for future growth and premiumization.
Channel Performance
Honasa experienced broad-based growth across all its sales channels. E-commerce channels grew by over 20%, while general trade and modern trade channels both saw growth of 40%. Mamaearth, the flagship brand, continued its high teens growth trajectory, supported by strong consumer love and franchise strength across both online and offline platforms.
Brand and Category Expansion
The company highlighted the strong performance of its BBlunt Hair Color brand and its continued focus on innovation in the hair color category. New product introductions in categories like body washes (The Derma Co.), tinted sun serums (Aqualogica), and curl care (BBlunt) are also contributing to the growth narrative. Younger brands, excluding The Derma Co., collectively grew at over 40% year-over-year.
Future Outlook
Management expressed confidence in sustaining growth momentum, driven by increasing per capita beauty spend in India, growing men’s awareness in the category, and the expansion into new markets. Honasa aims to reach a 15% EBITDA margin profile within the next four years, supported by continued brand strength and category expansion.
Source: BSE
