Honasa Consumer Ltd., the parent company of Mamaearth, is starting FY27 with strong confidence after reporting a major improvement in its financial performance during FY26. The beauty and personal care company expects around 30% underlying revenue growth in the first quarter of FY27 while continuing to maintain double-digit operating margins.
The company has also shared its long-term growth plans under its “Honasa 3.0” strategy, aiming to cross ₹5,500 crore in revenue by FY31. Along with expanding its product portfolio, Honasa is focusing on improving profits, growing its offline presence, and using technology to support future growth.
Strong FY26 Performance Gives Honasa a Good Start to FY27
Honasa ended FY26 with its best quarterly revenue so far. In the fourth quarter, the company reported revenue of around ₹657 crore, while like-for-like revenue grew 28% compared to the same period last year. The growth was supported by better sales across its brands and stronger performance in offline stores.
The company also saw a sharp rise in profits. Net profit for Q4 FY26 increased 176% year-on-year to ₹69 crore. For the full financial year, profit after tax rose to ₹200 crore, compared to ₹73 crore in FY25.
At the same time, Honasa’s EBITDA increased to ₹231 crore, and its EBITDA margin improved from 3.3% in FY25 to 9.7% in FY26. This shows that the company has become much more profitable while continuing to grow.
As a sign of its stronger financial position, Honasa announced its first-ever dividend of ₹3 per share, with a total payout of around ₹98 crore.
For Q1 FY27, the company expects underlying revenue growth of about 30% year-on-year. However, the reported growth is expected to be around 25% because of a change in Flipkart’s accounting method.
Flipkart now deducts logistics and fulfilment costs directly from revenue instead of showing them separately as expenses. Because of this accounting change, Honasa’s reported revenue will look slightly lower. The company has clarified that this change does not affect its EBITDA, margins or overall profitability.
Management also expects operating margins to stay above 10% during the quarter, supported by higher sales and better cost control.
New Brands and Investments Support Future Growth
Honasa is no longer depending only on Mamaearth for growth. Today, brands other than Mamaearth contribute around 30% of the company’s total revenue, giving it a more balanced business.
Mamaearth has returned to double-digit growth after a slower period and has gained market share in categories like face cleansers and shampoos.
The Derma Co. continues to be one of Honasa’s fastest-growing brands. It has crossed an annual recurring revenue run rate of ₹750 crore while maintaining double-digit EBITDA margins. According to Euromonitor, it is now India’s number one sunscreen brand.
The company’s recently acquired men’s grooming brand, Reginald Men, has also made a strong start. It crossed ₹100 crore in annual recurring revenue during its first quarter after joining Honasa. Other brands, including Aqualogica and Dr. Sheth’s, are also expanding their product range, especially in skincare and sunscreen.
Honasa is also entering new categories through strategic investments. It recently bought a 58% stake in Fluence Pharma, marking its entry into the nutraceutical market. Fluence owns brands such as Hair Fact, Skin Fact and Pro Fact and reported revenue of around ₹40 crore in FY26 while maintaining EBITDA margins of over 20%.
The company has also launched a premium skincare brand called Luminéve with Korean skincare experts and entered the premium oral care segment by acquiring a 25% stake in Fang Oral Care.
AI, Offline Expansion and FY31 Goals
One of the biggest reasons behind Honasa’s turnaround has been its improved offline distribution system. Through Project Neev, the company replaced its old super-stockist model with a direct-distributor network. This has given Honasa better control over inventory, pricing and product availability.
Today, more than 80% of its offline business comes through direct distributors. The company has expanded its direct retail network to around 120,000 outlets, while its products are now available at nearly 250,000 to 270,000 retail touchpoints across India. It plans to increase direct distribution to more than 300,000 outlets in the coming years.
Honasa has also reduced its marketing expenses. Advertising costs came down from 36% of revenue in FY25 to 32.9% in FY26, showing that the company is growing without spending as heavily on promotions.
Technology is another important part of its strategy. Honasa has introduced more than 30 AI-powered tools across different business functions. These tools help the company understand customer preferences, track market trends and develop new products more quickly.
The company also wants new brands to become profitable faster. Under its updated brand-building strategy, it aims to reduce the time for a new brand to reach contribution margin neutrality from four years to just two years. It is also focusing more on user-generated content and personalised marketing instead of relying only on influencers.
Looking ahead, Honasa plans to cross ₹5,500 crore in revenue by FY31 while increasing its EBITDA margin to more than 15%. The company also aims to grow Mamaearth beyond ₹2,000 crore in revenue, take The Derma Co. past ₹1,500 crore, and build at least two more brands with annual revenue of over ₹500 crore each.
With stronger profits, a wider brand portfolio, better offline distribution and greater use of AI, Honasa is preparing for its next phase of growth in India’s fast-growing beauty and personal care market.