Honasa Consumer (HONASA) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 recorded the highest quarterly revenue and profit, with revenue growth of 31.8%, 30.5% volume growth, EBITDA of ₹110 crore and PAT of ₹90 crore.

• Focus categories, stronger offline execution and expansion across established and younger brands supported momentum.

• Fragrance launches and expansion into nutrition and wellness extended the brand and category pipeline.

Financial highlights

• Consolidated revenue from operations was Rs 7,559.46 million versus Rs 5,952.54 million in Q1 FY26; consolidated PAT was Rs 904.48 million versus Rs 413.25 million.

• EBITDA doubled to INR 110 Cr, at a 14.1% margin; gross margin was 70.8%.

• Standalone revenue was Rs 6,963.18 million versus Rs 5,836.28 million, and standalone PAT was Rs 843.12 million versus Rs 399.01 million.

• Cash generation was ₹83 crore, with a negative working-capital cycle.

• Absolute A&P spending rose, while a higher mix of profitable B2C channels and improving brand profitability supported EBITDA.

Outlook and guidance

• FY27 growth is expected to exceed the five-year high-teens CAGR ambition; reinvestment for growth remains the priority.

• The five-year plan targets a 15% EBITDA margin with annual expansion of 100–150 bps; FY27 improvement was indicated at 100–200 bps YoY.

• Mamaearth is expected to deliver better-than-plan growth this year while retaining its five-year double-digit CAGR ambition.

• Margin progression may vary with seasonality and reinvestment; Q2 typically loses Q1 summer-category leverage.

• Priorities include sustaining momentum in Tier 2+ markets and quick commerce, and expanding in fragrance and skincare.