Honasa Consumer, the parent company of Mamaearth, has reported its best-ever quarterly and yearly financial performance for FY26. Strong demand for skincare and haircare products, better offline reach, and growth across multiple brands helped the company achieve record revenue and profit numbers.
The company also announced its first-ever dividend for shareholders and continued expanding into new beauty and wellness categories through acquisitions and new launches.
Honasa Posts Strong Revenue and Profit Growth in FY26
Honasa Consumer recorded its highest-ever quarterly revenue in Q4 FY26 on a like-for-like basis at INR 682 crore, showing a 28% year-on-year growth. Reported revenue for the quarter stood at INR 657 crore.
The company’s profit after tax jumped 178% to INR 69.2 crore during the quarter. EBITDA, which measures operating profit, increased 185% to INR 77 crore. EBITDA margins improved to around 11%.
For the full FY26 year, Honasa’s operating revenue reached INR 2,479 crore, up 20% compared to the previous year. Annual net profit rose sharply by 175% to INR 200 crore, while EBITDA tripled to INR 231 crore.
The company also reported strong volume growth of 23% and generated free cash flow of INR 134 crore during the year.
Because of the strong cash position, Honasa announced its first-ever final dividend of INR 3 per equity share. The total payout is expected to be around INR 98 crore.
The company also explained that a change in Flipkart’s accounting system affected reported revenue numbers by around INR 25 crore in Q4 and INR 87 crore for the full year. However, this change did not affect profits.
Mamaearth and The Derma Co Continue Fast Growth
Mamaearth returned to double-digit growth during FY26. Popular products such as Ubtan Face Wash and Onion Shampoo performed strongly and grew much faster than the overall brand.
New launches like Rice Face Wash and Rosemary Anti-Hair Fall Shampoo also received a positive response from customers. The Rice Face Wash alone reached an annual recurring revenue run rate of INR 100 crore.
The Derma Co. crossed an annual recurring revenue of INR 750 crore. The skincare brand became India’s top sunscreen brand in 2024 and also achieved double-digit EBITDA margins.
Offline business also improved for The Derma Co., with the brand crossing INR 100 crore ARR through offline channels alone.
Aqualogica crossed a revenue run rate of around INR 150-200 crore. Dr. Sheth’s crossed INR 150 crore in revenue, while BBlunt reached an ARR of INR 100 crore after being acquired from Godrej Consumer Products.
The company also launched a new Gen Z-focused makeup brand called Staze. At the same time, Honasa decided to shut down its Ayurvedic beauty brand Ayuga because it could not build strong customer demand.
Honasa Expands Through New Acquisitions and Categories
Honasa continued strengthening its “House of Brands” strategy with new investments and acquisitions.
The company acquired a 95% stake in BTM Ventures, the parent company of men’s grooming brand Reginald Men, for INR 195 crore.
Reginald Men mainly operates in South India and focuses on products like sunscreens and serums. After joining Honasa, the brand crossed an ARR of INR 100 crore and doubled its revenue year-on-year.
Honasa also bought a 25% stake in Couch Commerce, the parent company of Fang Oral Care, for INR 10 crore. This investment marks the company’s entry into the premium oral care and teeth-whitening market.
The company further launched a premium night-care skincare brand called Luminéve, available only on Nykaa.
Honasa also announced plans to enter the nutraceuticals segment, including beauty-focused vitamins and supplements.
Offline Expansion and Technology Investments Support Growth
Honasa expanded its offline distribution strongly during FY26. The company now sells products through more than 2.5 lakh FMCG retail outlets and over 10,000 modern trade stores across India. Under “Project Neev,” the company shifted from a super-stockist model to direct distribution in the top 50 cities.
Although this caused some temporary inventory losses earlier in the year, operations became stable by Q4.The company also invested in technology and research. Its AI-based skin analysis tools reportedly increased average order value by 18%.
Read More: Ixigo FY26 Results- Profit Jumps 90%, Company Expands AI and European Rail Business
Along with this, Honasa committed INR 350 crore towards biotech research and development to create its own bio-active ingredients and reduce dependence on synthetic ingredients. The company also granted more than 5.7 lakh employee stock options under its ESOP plan.
Valuation Concerns Still Remain
Despite the strong results, some analysts remain concerned about Honasa Consumer’s high market valuation. The company’s price-to-earnings ratio is currently between 60x and 65x, which is higher than several major FMCG companies.
Experts have also pointed out rising competition in the beauty and personal care industry along with high advertising expenses, which account for nearly 35% of the company’s total revenue.
Still, Honasa management remains positive about future growth. The company is targeting a revenue run rate of INR 5,000 crore by 2030 and expects high-teen revenue growth along with better EBITDA margins in FY27.