Honasa Consumer, the parent company of Mamaearth, The Derma Co and Aqualogica, reported an 86.7% YoY increase in consolidated net profit to Rs 73.2 crore in Q2 FY27, compared with Rs 39.2 crore in the corresponding quarter last year.
The Gurugram-based beauty and personal care (BPC) company's revenue from operations increased 35.9% to Rs 731.2 crore during the September quarter, against ₹538.1 crore in Q2 FY26.
Founded in 2016 by Varun Alagh and Ghazal Alagh, Honasa has developed a house-of-brands business spanning skincare, haircare, personal care and beauty products.
The company's EBITDA nearly doubled to Rs 93 crore during the quarter, reflecting improved operating profitability alongside strong revenue growth.
However, performance was weaker sequentially. Net profit declined 19% from ₹90.4 crore in Q1 FY27, while revenue from operations fell 3.3% from ₹755.9 crore.
Honasa's Profit Growth Outpaces Expenses
Honasa's total expenses increased 29.1% YoY to ₹652.4 crore in Q2 FY27, compared with ₹505.5 crore a year earlier. The slower increase in expenses relative to revenue helped improve profitability.
Tax expenses more than doubled to ₹27.6 crore during the quarter.
For the first half of FY27, revenue from operations increased 31% YoY to ₹1,487.1 crore, while net profit more than doubled to ₹163.7 crore.
Commenting on the performance, co-founder and CEO Varun Alagh said the company delivered its highest revenue growth since listing, with its focus categories growing more than 40% and contributing over 80% of its business.
Younger Brands Drive Honasa's Growth
Beyond its flagship Mamaearth brand, Honasa operates a portfolio that includes The Derma Co, Aqualogica, Dr Sheth's, BBlunt and Staze.
The company said its younger brands collectively recorded growth of more than 45% during Q2 FY27, outpacing Mamaearth's high-teens growth.
Mamaearth continued to maintain EBITDA margins in the mid-teens, while the newer brands benefited from their respective category growth strategies.
Honasa has increasingly focused on building multiple brands rather than depending solely on Mamaearth. This strategy allows it to address different consumer segments across skincare, haircare, cosmetics and personal care.
The company does not separately disclose the complete financial performance of individual brands.
General Trade And E-commerce Expand
Honasa reported approximately 40% YoY growth in general trade secondary sales and modern trade offtake, while e-commerce grew 20%.
Its general trade distribution network expanded to approximately 3.2 lakh outlets across India.
The company also said its focus categories, including face cleansers, shampoos, face serums and sunscreens, represent a market opportunity of approximately ₹50,000 crore. Honasa estimates its market share across these categories at around 5%.
These figures are company estimates and should be viewed separately from independently measured market-share data.
Honasa's Growth Strategy Moves Beyond Mamaearth
Honasa's latest results highlight the growing contribution of its younger brands to overall business performance.
While Mamaearth continues to provide an established revenue base, faster growth across The Derma Co, Aqualogica and other portfolio brands is helping the company diversify its business.
The combination of stronger distribution, online sales and category expansion will be important as Honasa competes with established FMCG companies and emerging digital-first beauty brands.
For the next phase of growth, the key challenge will be sustaining this momentum while maintaining profitability and building stronger individual brands within its portfolio.
Disclaimer: This article is for information purposes only and is not investment advice. Investments in securities are subject to market risks. Please read the official offer documents before investing.
