Honasa Q1: Profit Rises 2.4% YoY To INR 41 Cr

Beauty and personal care (BPC) major Honasa Consumer’s consolidated net profit rose 2.4% to INR 41.3 Cr in Q1 FY26 from INR 40.3 Cr a year ago. Sequentially, the Mamaearth parent’s profit zoomed 65% from INR 25 Cr. 

Operating revenue grew 7% to INR 595.3 Cr during the quarter under review from INR 554.1 Cr in the year-ago quarter. Like profit, the growth in the top line was higher on a QoQ basis. Revenue jumped 12% from INR 533.6 Cr in Q4 FY25.

EBITDA remained flat on a YoY basis at INR 46 Cr but improved significantly from INR 27 Cr in Q4 FY25. EBITDA margin contracted 70 basis points to 7.7% from 8.3% in the previous year’s quarter. 

Including other income of INR 23.9 Cr, Honasa’s total income for the quarter stood at INR 619.1 Cr. Meanwhile, total expenses increased 8% YoY to INR 563.6 Cr.

Honasa CEO Varun Alagh said that the company reported its highest-ever quarterly revenue and record quarterly profit in the first three months of FY26. He said that the company’s “focus categories” saw a double-digit YoY growth in the June quarter and now account for over 80% of the company’s revenue. 

Honasa said Mamaearth continued to outperform the rest of its brands, which include. BBlunt, The Derma Co, among others. 

“Our innovation pipeline remains strong, with launches rooted in proven efficacy and consumer-desired benefits. Our offline distribution remains on a positive trajectory, further enhancing our reach and visibility. We are strengthening our playbooks by focusing on select, sharply defined category segments within our core categories,” Alagh added. 

The performance comes on the back of Honasa restructuring its entire offline distribution model in FY25 under ‘Project Neev’. Under the project, the company shifted from a two-layered system that included super-stockists to a direct distribution model in the top 50 cities with a goal of improving efficiency, streamlining the distribution network, and giving it more control over pricing, inventory, and in-store presence.

Honasa said it reached 2.4 Lakh FMCG retail outlets in India as of June 2025, increasing distribution 20% YoY. Besides, it said that its modern retail offtake also grew 20% YoY in the June quarter. 

“General trade distribution remains on a positive trajectory, with our direct distribution strategy driving a 50%+ YoY increase in direct outlet billed in Q1 FY26, strengthening our reach and retail presence,” Honasa said.

Notably, the change in its distribution strategy hit the company’s financial numbers in FY25. Its net profit declined 34.2% to INR 72.7 Cr during the year, while operating revenue grew 8% YoY to INR 2,066.9 Cr. 

The previous distribution strategy also led to Honasa’s clashes with distributors. In November 2024, the All India Consumer Products Distributors Federation said that Honasa’s unsold inventory lying with distributors and retailers was causing a financial burden of INR 300 Cr. It alleged that Mamaearth had been offloading excessive stocks to distributors without considering market demand, which caused damage to the distribution and the retail ecosystem and erosion of trust.

Shares of Honasa ended today’s trading session 1.39% higher at INR 269.90 on the BSE.