Honasa Consumer (HONASA) investor relations material

Executive summary

• Achieved record quarterly revenue of INR 595 Cr (Rs 5,952.54 million), up 7.4–7.5% year-over-year and 11.6% sequentially, with highest ever profit and strong volume-led growth.

• Focus categories, now 80% of revenue, grew in double digits, with strong momentum in e-commerce and modern trade channels.

• Young brands portfolio delivered 20%+ growth, though growth moderated from previous 30%+ due to base effect and sunscreen softness.

• Continued investment in innovation, product superiority, and consumer-centric R&D, with new launches in hair care, moisturizers, and sunscreens.

• Expanded offline distribution, reaching 240,113 FMCG retail outlets, up 20% YoY.

Financial highlights

• Revenue up 7.4–7.5% year-over-year and 11.6–11.7% sequentially; highest in company history.

• Gross margin improved by 48 bps sequentially to 71.2%; EBITDA margin at 7.7%, up 264 bps sequentially.

• Profit after tax: INR 41 Cr (Rs 413.25 million), margin at 6.9%, up 65.4% QoQ.

• Working capital remains negative at (11) days, supporting cash generation.

• Impact from early monsoon led to softness in sunscreen category, reducing overall growth by 200 bps.

Outlook and guidance

• Expect double-digit value growth and sustained 7% EBITDA margin for the remainder of FY26.

• Targeting 100-150 bps annual improvement in profitability over the next 4-5 years; larger brands expected to reach mid-teen EBITDA margins.

• Sun care and face serums expected to become INR 5,000 Cr+ categories by 2028, with color cosmetics projected to reach INR 17,300 Cr.

• Premiumization and increased frequency of use driving growth in key beauty and personal care segments.

• No material financial impact is expected from ongoing legal disputes as of the reporting date.