Honasa Consumer reports a strong start to FY27 with 32% revenue growth, driven by expansion across online and offline channels. The company is diversifying into fragrances and health, aiming for high-teen growth and increased EBITDA margins despite rising costs.
Honasa Consumer said its first quarter of FY27 delivered broad-based growth, with revenue up 32% year on year and volumes rising 30.5%, as the personal care company extended gains across both online and offline channels. The group reported EBITDA of about INR110 crores, supported by a richer product mix and operating leverage, while saying it generated INR83 crores of cash and remained in a negative working-capital position.
The biggest brand, Mamaearth, returned to high-teen growth, helped by core products such as Tea Tree face wash and Rosemary shampoo. Honasa also said The Derma Co has become its second INR1,000 crore brand, marking another step in the company’s push to scale newer labels beyond the founder brand. The business said general trade secondary sales and modern trade off-take were both running above 40%, with distributor stock levels below 30 days.
Varun Alagh, Honasa’s chairman and chief executive, said the quarter’s margin improvement reflected a combination of better product mix, operating leverage and seasonal summer demand, alongside a one-time operating expense benefit. Still, the company said it expects some pressure in the second quarter from higher crude-linked and packaging costs, although it has already taken calibrated price increases to soften the blow. Business Standard had earlier reported that Honasa was guiding for around 30% revenue growth in the quarter, or mid-twenties growth after adjusting for Flipkart-related revenue-recognition changes.
Looking ahead, Honasa is leaning on a broader pipeline that now includes fragrance and health. The company launched Friccin, which it describes as a patented, elixir-based perfume brand with 12-hour longevity, after an earlier fragrance attempt under Mamaearth failed to gain traction. It has also set up Honasa Health as a move into nutrition and wellness, while the acquisition of Fluence Pharma remains under diligence. Alagh said the company still aims to exceed its five-year high-teens compound annual growth target this year, even as it keeps annual EBITDA margin expansion guidance at 100 to 150 basis points and prioritises growth over short-term profit maximisation.
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