Honasa Consumer’s Q1 profit inches up on steady sales growth
Mamaearth parent Honasa posts 7.6% revenue growth, 2.7% profit rise in Q1 FY26, as offline push and new brands drive sales but marketing spends weigh on margins.
Honasa Consumer Ltd, the parent of personal care brands Mamaearth, The Derma Co, and BBlunt, posted a modest rise in earnings for the first quarter of FY26, with revenue from operations climbing 7.6% year-on-year to Rs 595.25 crore from Rs 553.26 crore a year earlier.
Net profit for the April–June period came in at Rs 41.33 crore, up 2.7% from Rs 40.26 crore in the same quarter last year, according to the company’s consolidated financial results. Earnings per share edged up to Rs 1.27 from Rs 1.24.
Total income rose to Rs 619.14 crore from Rs 571.29 crore in Q1 FY25, reflecting continued demand for Honasa’s expanding product portfolio and newer offline distribution push.
The company’s profit before tax stood at Rs 55.59 crore, up 6.2% from Rs 52.35 crore a year earlier. The pace of bottom-line growth lagged revenue gains, suggesting higher marketing and distribution spends as the company ramps up brand visibility.
Honasa’s earnings per share came in at Rs 1.27, up from Rs 1.24 a year earlier. The improvement follows a period of margin compression in late FY25, when costs linked to Project Neev, its shift from a super-stockist model to direct distribution, tempered profitability.
The company’s gross margins had recovered to over 70% in Q4 FY25, and the Q1 figures suggest this trend has continued into FY26.
Strategic drivers
Honasa has been consolidating its operations, with the National Company Law Tribunal approving the amalgamation of certain subsidiaries earlier this year, a move aimed at streamlining corporate structure and improving cost synergies.
The company’s newer brands continue to post high double-digit growth, while core categories like face washes and sunscreens retain their lead positions. Offline sales now account for a growing share of revenue, as the direct distribution model allows for tighter control over pricing, inventory, and in-store presence.
The filing disclosed that Honasa is engaged in arbitration proceedings in the UAE with RSM General Trading LLC. The matter is currently stayed, and the company does not expect any material financial impact at this stage.
On August 12, Honasa’s shares ended the trading session on the BSE at Rs 269.9 apiece, up 1.39%.
Edited by Jyoti Narayan