Honasa Consumer (HONASA) Q3 25/26 earnings summary

Executive summary

• Achieved highest-ever quarterly revenue in Q3FY26, with 21.7% year-over-year growth, led by strong volume, double-digit growth in core and young brands, and market share gains in key categories.

• EBITDA and PAT reached record highs, with sequential improvement in margins and profitability, and PAT nearly doubled year-over-year.

• Strategic focus on premiumization, innovation, and targeted marketing, especially in men's skincare, supported by the acquisition of Reginald Men.

• Continued investment in R&D, product innovation, and community initiatives across brands.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved and reviewed by the Board and Audit Committee.

Financial highlights

• Q3FY26 consolidated revenue from operations was Rs 6,015.41 million (INR 602 crore), up 21.7% year-over-year, with 30% UVG growth.

• EBITDA margin improved to 10.9%, with gross profit margin at 68.5% and PAT nearly doubled year-over-year to Rs 502.00 million.

• Working capital cycle remains negative, supporting cash flow and efficient capital management.

• Revenue recognition impact of INR 28 crore due to Flipkart Group policy change, with no effect on bottom line.

• Advertisement expense as a percentage of revenue decreased to 30.9% in Q3FY26 from 34.3% in Q3FY25.

Outlook and guidance

• Confident in sustaining strong growth and margin improvement, targeting 100 basis points margin expansion annually.

• Focus on accelerating growth in key categories, expanding offline and online distribution, and continued premiumization and innovation.

• Expect focus categories to reach 85%-87% of sales in three years, driven by premiumization and distribution gains.

• No one-off GST or external factors; growth attributed to share gains and execution of strategic playbook.

• The company continues to monitor the impact of new Labour Codes and will assess future effects on employee benefit liabilities.