Honasa Consumer (HONASA) Q1 26/27 earnings summary

Executive summary

• Achieved record quarterly revenue and profit in Q1 FY27, with 32% year-over-year revenue growth and strong volume growth of 30.5%.

• Focus categories grew over 35%, now contributing 85%+ of revenue, with robust performance from both core and young brands.

• Launched new fragrance brands, including Friccin and F/KN, after extensive R&D and market research, marking entry into a high-growth category.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, were approved by the Board on August 13, 2026.

• The group operates primarily in beauty and personal care products, with all operations considered a single segment.

Financial highlights

• Revenue from operations reached INR 785 Cr (Rs 7,559.46 million consolidated), up 31.8% year-over-year, with underlying volume growth of 30.5%.

• EBITDA doubled to INR 110 Cr, with a margin of 14.1%, and PAT rose to INR 90 Cr (Rs 904.48 million consolidated), with an 11.5% PAT margin.

• Gross profit margin maintained above 70%, at 70.8%.

• EBITDA margin improved by 636 bps year-over-year, aided by mix impact, leverage, and a non-recurring ESOP reversal.

• Cash generation stood at INR 83 Cr, with a negative working capital cycle.

Outlook and guidance

• Management reiterates a high-teens CAGR growth target over five years, expecting FY27 to outperform this benchmark.

• Continued innovation and expansion in high-growth categories like fragrance and skincare, with focus on Tier 2+ markets and Q-commerce platforms.

• Margin expansion of 100–150 basis points per year targeted, with growth prioritized over margins.

• The company continues to monitor regulatory changes, such as the Labour Codes, and will assess future impacts on employee benefit liabilities.