Honasa Consumer Limited has announced its financial results for the first quarter of Fiscal Year 2027 (Q1FY27), reporting a substantial 32% year-over-year growth in revenue, reaching INR 785 crore. The company also demonstrated strong profitability with EBITDA growing over 2X to INR 110 crore. Profit After Tax stood at INR 90 crore, marking a significant increase. These results highlight the company’s robust performance and expanding market presence across its key categories.
Honasa Consumer Reports Strong Q1 FY27 Performance
Honasa Consumer Limited has announced its financial results for the first quarter of the fiscal year 2027 (Q1FY27), showcasing impressive growth across key financial metrics. The company achieved its highest ever quarterly revenue and profit during this period, with Revenue from Operations reaching INR 785 crore, a notable 31.8% YoY improvement.
Key Financial Highlights for Q1FY27
The company’s financial performance was characterized by strong growth in profitability and operational efficiency:
- EBITDA surged by more than 2X to INR 110 crore, reflecting a healthy 14.1% EBITDA Margin. This improvement was driven by a favorable mix impact and leverage, along with non-recurring items.
- Gross Profit Margin remained strong at 70.8%, continuing the trend of maintaining over 70% GM profile.
- Profit After Tax (PAT) saw a significant increase to INR 90 crore, contributing to an 11.5% PAT Margin.
- Underlying Volume Growth (UVG) was recorded at 30.5%, indicating strong volume-led growth.
- Cash Generation was robust at INR 83 crore, showcasing the company’s ability to generate cash effectively within its working capital cycle.
Revenue Recognition and Market Dynamics
The company’s revenue recognition was impacted by a change in settlement by Flipkart, resulting in approximately INR 29 crore revenue recognition impact on the topline, with no effect on absolute profitability. This change effectively netted off logistics and fulfillment costs. Despite this, Like-for-Like (LFL) revenue growth for Q1FY27 was reported at 32%.
Channel and Category Performance
Honasa Consumer continues to see strong traction across its key sales channels:
- eCommerce channels experienced a 20%+ YoY growth.
- General Trade and Modern Trade channels both showed robust growth of 40%+.
Focus categories, which now contribute 85%+ to revenue, expanded their contribution by 450 bps YoY. Key brands like Mamaearth and The Derma Co. continue to show strong momentum, with innovations and market share gains in their respective segments.
Brand and Product Innovations
The company highlighted several key innovations for the quarter, including new product launches and updates across its brand portfolio, such as Mamaearth’s Flaxseed Damage Repair Shampoo and 1% Hyaluronic Moisturizing Sunscreen Body Lotion from the Derma Co. Honasa also announced its entry into the fragrance category with its first elixir brand, F/KN.
Source: BSE
