Mamaearth Parent Honasa Posts INR 39 Cr Profit In Q2 FY26

SUMMARY

Honasa Consumer posted a consolidated net profit of INR 39.2 Cr in Q2 FY26 as against a loss of INR 18.6 Cr incurred in the year-ago period

The company's profit declined 5% from INR 41.3 Cr in Q1 FY26

Operating revenue for the quarter under review rose 17% YoY to INR 538.1 Cr but declined 10% QoQ

Beauty and personal care (BPC) major Honasa Consumer posted a consolidated net profit of INR 39.2 Cr in Q2 FY26 as against a loss of INR 18.6 Cr incurred in the year-ago period. However, it is pertinent to note that the company slipped into the red in Q2 FY25, along with seeing a decline in revenue, due to its transition from super-stockist-led model to direct distributor model.

Meanwhile, the company’s profit during the quarter under review declined 5% from INR 41.3 Cr in Q1 FY26.

Operating revenue for the quarter rose 17% to INR 538.1 Cr from INR 461.8 Cr in Q2 FY25. However, it declined 10% QoQ from INR 595.3 Cr. Including other income of INR 20.1 Cr, total income stood at INR 558.2 Cr.

Meanwhile, total expenses remained largely flat YoY at INR 505.5 Cr. The company’s tax expense for the quarter stood at INR 13.5 Cr as against a tax credit of INR 5.8 Cr in the year-ago quarter.

It reported an EBITDA of INR 48 Cr during the quarter against an EBITDA loss of INR 31 Cr in the year-ago quarter. Meanwhile, EBITDA margin improved to 8.9%.

Notably, Honasa’s top line saw INR 28 Cr revenue recognition impact due to change in settlement by the Flipkart Group. The ecommerce giant recently altered its settlement structure for marketplace sellers. Instead of showing certain fulfilment and logistics costs expenses on the seller’s books, Flipkart now nets these costs directly off the revenue it pays to the seller.

Honasa sells a large part of its products through ecommerce marketplaces like Flipkart and thus had to bear an impact from this shift. The BPC company said that on a like-for-like basis, its revenue growth was over 22% during the quarter. However, it said that the change had “no effect on absolute profitability”.

The company said its ecommerce and modern trade business channels reported double-digit growth in the quarter, while general trade growth was muted.

Honasa’s portfolio of BPC brands features Mamaearth, The Derma Co, Aqualogica, Staze, BBlunt and Dr. Sheth’s. While the company doesn’t share absolute numbers that are reflective of each brand’s performance, it claimed healthy growth across its portfolio.

For its “younger brands” (BBlunt, Aqualogica, Dr. Sheth’s and Staze), the company claimed a 20% YoY growth. It also said that The Derma Co crossed the INR 750 Cr annual revenue run rate (ARR) milestone.

Meanwhile, it said that its flagship brand Mamaearth’s growth got back in the green during the quarter, with its rice facewash entering the INR 100 Cr ARR.

With an eye on expanding its portfolio, Honasa is now foraying into the oral care segment. The company has signed a definitive agreement to purchase a 25% stake in ‘Fang Oral Care’ parent Couch Commerce for INR 10 Cr. The deal is expected to close over the next four weeks.

Shares of Honasa ended today’s trading session 2.25% higher at INR 281.95 on the BSE.