Honasa Consumer Expects Strong Results for FY27

Honasa Consumer, which oversees Mamaearth, anticipates a robust beginning to FY27, with revenue growth expected to be approximately 30% year-on-year in the initial quarter. This growth is driven by significant demand for its brands and ongoing success in offline channels.

In a business update released on Thursday, the company indicated that its reported revenue growth is projected to be in the mid-twenties after adjustments are made related to the Flipkart group for revenue recognition. The company explained that this adjustment concerns modifications in settlement practices for marketplace sellers.

Performance of Brands

Honasa’s primary brand, Mamaearth, is forecasted to report high-teen year-on-year growth for the quarter. The positive performance is attributed to a rise in consumer demand and enhanced offline distribution.

Newer brands in Honasa’s portfolio, including The Derma Co., Aqualogica, BBlunt, Dr. Sheth’s, Staze, Lumineve, and Reginald Men, are also expected to maintain their strong growth trajectory, with projections indicating growth in the early forties.

Growth Drivers

The offline segment proved to be a critical growth driver this quarter, buoyed by improved general trade distribution, superior store execution across modern trade, and increasing direct reach. The online sector is also anticipated to show considerable growth, according to the company.

Profitability Expectations

On the topic of profitability, Honasa indicated that it expects to sustain a double-digit operating margin in Q1 FY27, supported by operational leverage as the business expands.

The company emphasised that this update is provisional and does not represent definitive financial results or formal earnings projections. Comprehensive financial results will be disclosed once the board ratifies the company’s Q1 FY27 financial statements.

As of 10:03 AM on Thursday, Honasa’s shares were valued at Rs 467.25, resulting in a market capitalisation of approximately Rs 15,250 crore.