Honasa Consumer (HONASA) investor relations material

Evolution of the market and business model

• Traditional offline channels and mass media previously dominated, limiting innovation and favoring scale over consumer-centric approaches.

• The 2010s saw the rise of e-commerce, digital media, and influencers, breaking barriers and enabling new brands to emerge.

• Leveraging digital-first innovation, rapid product cycles, and data-driven strategies enabled rapid growth and market disruption.

• Expansion from a single brand to a multi-brand portfolio through both organic growth and acquisitions across diverse beauty and personal care (BPC) categories.

• Transitioned from digital-first to a true omni-channel distribution model, covering e-commerce, modern trade, general trade, and quick commerce.

Financial performance and operational strength

• Revenue grew from ~INR 2 Cr in FY17 to ~INR 2,400 Cr in FY26, with EBITDA exceeding INR 230 Cr and profit after tax over INR 130 Cr.

• Workforce expanded to ~1,000 employees, with seven brands and focus on seven key categories.

• Achieved double-digit growth across channels and focus categories, with direct distribution reach increasing sixfold to ~120k outlets.

• Maintained strong profitability while scaling, targeting ~20% EBITDA through efficiencies in channel mix, procurement, and brand spend.

Strategic myths addressed and growth opportunities

• Significant headroom for growth remains, with only 8 out of 100+ BPC partitions dominated and 80+ partitions yet to be entered.

• Margin profile remains robust even as scale channels like general and modern trade expand, with higher profitability in certain channels.

• Brand spends are maintained to support growth, with efficiencies driving EBITDA improvement rather than spend cuts.

• Delivered on promises: expanded EBITDA margin, reignited growth, enhanced direct distribution, and achieved strong category growth.