India · Delayed Price · Currency is INR Honasa Consumer Earnings Call Transcripts
Fiscal Year 2026
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Q4 FY26 saw 28% YoY revenue growth, EBITDA nearly 2.5x YoY, and PAT at INR 69 crores. Focus categories and young brands drove strong volume-led growth, with premiumization and distribution expansion supporting a high-teens CAGR outlook.
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Quarterly revenue grew 21.7% year-over-year to INR 602 crore, with record EBITDA and PAT, driven by strong performance in core and young brands. Margin expansion and robust growth are expected to continue, supported by innovation, distribution gains, 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 revenue grew 13.3% YoY, with strong double-digit growth in Mamaearth's focus categories and young brands up 30%+. Working capital improved, and Derma Co turned EBITDA positive. FY 2026 targets include double-digit growth, margin expansion, and expanded direct distribution.
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Non-Mamaearth brands grew over 30% YTD and now contribute 40%+ of revenue, while Mamaearth remains flat to declining. Distribution transformation is complete in top cities, quick commerce is the fastest-growing channel, and margin recovery is expected by H2 FY26.
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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.