Mamaearth parent Honasa's Q2 profit jumps 87% to ₹73 crore
What's the story
Honasa Consumer Limited, the parent company of Mamaearth, has reported stellar financial results for the September quarter (Q2FY27). The company's revenue growth hit a post-listing high while profitability improved sharply. Revenue jumped 35.9% year-on-year to ₹731 crore from ₹538 crore in the same quarter last year. Net profit surged by an impressive 87.2% to ₹73 crore from ₹39 crore last year.
Financial performance
EBITDA nearly doubled to ₹93.2 crore
Honasa Consumer's earnings before interest, taxes, depreciation, and amortization (EBITDA) nearly doubled, rising 96.2% to ₹93.2 crore from ₹47.5 crore last year.
The EBITDA margin also expanded to 12.7% from 8.8% in the same quarter last year, an improvement of 390 basis points.
This stellar financial performance is attributed to strong momentum across general trade, modern trade, and e-commerce channels as per the company's statement.
Strategic focus
Strong momentum in focus categories
Honasa Consumer has revealed that its focus categories have grown over 40% and now account for over 80% of the company's business. This growth is largely due to rising demand for skincare, haircare, and other personal care products.
The company's flagship brand Mamaearth maintained high teens revenue growth while The Derma Co continued to grow profitably with its distribution network expanding across over 65,000 retail outlets.
Brand performance
Varun Alagh on the company's performance
Honasa Consumer's younger brands have also shown strong growth with a combined revenue increase of over 45% year-on-year.
Varun Alagh, CEO and co-founder of Honasa Consumer, said the September quarter reflected the company's efforts to build a larger presence in the sector.
He added that they delivered their highest growth since listing with revenue growing 36% YoY and EBITDA nearly doubling to ₹93 crore.
Distribution expansion
Expansion of offline retail network
Honasa Consumer has also been expanding its offline retail network, especially in general trade stores.
The company's general trade distribution network now covers about 3.2 lakh outlets.
It also reported over 40% YoY growth in offtake through modern trade channels such as supermarkets and organized retail chains.
This expansion is crucial for Honasa, as it gives access to a wider consumer base, especially in regions where online shopping is still nascent.