₹90 Crore Profit, 35%+ Growth: What’s Driving Honasa’s Strong Q1?
Honasa Consumer, the parent company of Mamaearth, has started FY27 on a strong note, with both revenue and profit showing a sharp jump in the June quarter. But the bigger story is what is happening underneath those numbers — newer brands are growing quickly, offline distribution is expanding, and the company is steadily moving beyond its flagship brand.
Honasa reported a consolidated profit after tax (PAT) of ₹90.45 crore for Q1 FY27, more than double the ₹41.33 crore recorded in the same quarter last year.
Revenue from operations also climbed to ₹755.95 crore, up from ₹595.25 crore a year earlier. Including ₹22.51 crore in other income, the company’s total income stood at ₹778.46 crore for the quarter.
Profit is growing faster than revenue
The interesting part of Honasa’s latest performance is the pace at which profitability has improved.
Operating EBITDA rose to around ₹110 crore, compared with approximately ₹46 crore in Q1 last year. As a result, the EBITDA margin expanded to 14.6% from 7.7%.
The company also saw sequential growth. Revenue from operations increased roughly 15% from ₹657.08 crore in the March quarter, while profit rose around 30% from ₹69.44 crore.
That suggests Honasa isn’t simply growing its topline — it is also becoming more profitable as the business scales.
Mamaearth is growing, but the younger brands are moving faster
Mamaearth remains an important part of the portfolio, recording high-teens growth during the quarter.
However, Honasa’s younger brands are becoming increasingly important. The company said its portfolio of newer brands grew by more than 40%, while its focus categories grew by over 35%.
Some of the individual milestones are also catching attention.
Mamaearth’s Rice Dewy Bright Face Wash has emerged as the brand’s leading face cleanser. Its Rosemary range has also crossed ₹100 crore in annual recurring revenue (ARR), becoming only the second hair-care ingredient after Onion to reach that milestone.
Meanwhile, The Derma Co. crossed ₹1,000 crore in annualised net sales value, while its face cleanser business surpassed ₹200 crore in ARR.
The offline push is getting bigger
Honasa isn’t relying only on online channels to fuel its growth.
The company said both General Trade and Modern Trade grew by more than 40% during the quarter. By the end of June, its products were available across approximately 300,000 FMCG retail outlets.
This expansion could become particularly important as beauty and personal care brands compete for customers beyond India’s biggest cities.
With stronger offline distribution alongside e-commerce, Honasa appears to be building a broader retail engine rather than depending on the digital-first playbook that helped brands such as Mamaearth grow initially.
A new category enters the portfolio
Honasa is also continuing to expand its brand portfolio.
The company has entered the fragrance segment with FIKN, adding another category to its existing beauty and personal care business.
At the same time, acquisitions are becoming another part of its growth strategy.
In January 2026, Honasa completed the acquisition of a 95% stake in BTM Ventures, which owns men’s personal care brand Reginald Men. The company said the business has since crossed ₹150 crore in ARR and more than doubled in size following the acquisition.
Nutrition could be the next big move
Honasa’s expansion may not stop at beauty and personal care.
In June, its board approved the proposed acquisition of a 58% stake in nutraceuticals company Fluence Pharma at an enterprise value of around ₹135 crore.
The transaction was still pending completion when Honasa announced its Q1 results on August 13. The company said the deal remained subject to closing adjustments and other conditions, meaning it had no impact on the June-quarter financial results.
If completed, Honasa plans to acquire the remaining 42% stake in Fluence Pharma in two tranches over the following five to seven years.
So, what’s really changing at Honasa?
The Q1 numbers point to a company that is gradually becoming more than just the parent of Mamaearth.
Mamaearth continues to grow, but newer brands are expanding faster. Offline distribution is accelerating, profitability has improved sharply, and acquisitions are helping Honasa enter new consumer categories.
As Chairman, CEO and co-founder Varun Alagh put it, the company’s strategy is beginning to translate into performance.
For Honasa, the bigger question now isn’t simply whether it can grow. It’s whether this combination of new brands, wider distribution, stronger margins and acquisitions can turn the company into a much broader consumer business over the next few years.
