India · Delayed Price · Currency is INR Honasa Consumer Earnings Call Transcripts
Fiscal Year 2026
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Achieved record revenue and profitability with 21.7% YoY growth, driven by strong core and young brand performance, margin expansion, and successful channel execution. Confident in sustaining growth and margin improvement, with focus on premiumization, innovation, and strategic acquisitions.
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Q2 FY26 saw 22.5% revenue growth, record gross margins, and strong performance from core and young brands. Mamaearth and The Derma Co led growth, while new launches and investments in prestige and oral care signal a focus on premiumization and innovation.
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Highest ever quarterly revenue and PAT achieved, with 7.5% YOY growth and strong volume-led performance. Focus categories and young brands drove double-digit growth, while margin expansion and cash generation remain priorities. Double-digit growth and 7% EBITDA margin are guided for the rest of FY26.
Fiscal Year 2025
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Q4 saw 13.3% revenue growth and strong cash generation, with focus categories in Mamaearth returning to double-digit growth in key channels. Young brands grew 30%+, and Derma Co achieved INR 100 crore ARR offline. FY 2026 targets double-digit growth and improved EBITDA margins.
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Non-Mamaearth brands grew over 30% YTD, now making up 40%+ of revenue, while Mamaearth declined, especially in General Trade. Distribution overhaul is complete in top 50 cities, with quick commerce now 7-8% of sales. Margin recovery and growth are expected in FY26 H2.
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Q2 was marked by a significant inventory correction and sales return, leading to a negative EBITDA margin. Management is overhauling distribution and focusing investments on core categories, expecting a gradual recovery over the next few quarters.
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Q1 FY25 saw 19.3% YoY growth, record profitability, and strong gross margin at 71.7%. Project Neev's inventory correction will impact one quarter, but full-year guidance of 20%+ growth and 150 bps margin expansion is maintained. Quick commerce and innovation continue to drive growth.