Honasa Consumer climbs as Q2 PAT soars 87% YoY
Gross profit rose 34.8% YoY to Rs 511 crore from Rs 379 crore. Gross profit margin stood at 69.9% against 70.5% a year ago.
EBITDA nearly doubled, rising 95.6% YoY to Rs 93 crore from Rs 48 crore. EBITDA margin improved to 12.7% from 8.9% in Q2 FY26.
Profit before tax increased 91.1% YoY to Rs 101 crore from Rs 53 crore. PBT margin improved to 13.8% from 9.8% a year ago.
Cost of goods sold increased 38.4% YoY to Rs 220 crore from Rs 159 crore. Employee benefit expenses rose 21.7% to Rs 73 crore, while advertisement expenses increased 36.1% to Rs 245 crore. Other expenses rose 9.8% to Rs 101 crore.
Depreciation and amortisation declined 8.3% to Rs 11 crore from Rs 12 crore, while finance costs remained unchanged at Rs 3 crore. Other income increased 10% to Rs 22 crore from Rs 20 crore.
The company's Focus Categories grew more than 40% YoY and contributed over 80% of its business. Mamaearth maintained high-teens growth, while The Derma Co. continued to report profitable growth. Younger Brands recorded growth of more than 45% YoY.
Offline distribution continued to expand, with General Trade reach increasing to approximately 3.2 lakh outlets. Modern Trade recorded over 40% YoY growth in offtake. The Derma Co. expanded its presence to more than 65,000 outlets.
Chairman and CEO Varun Alagh said the company delivered its highest growth since listing, supported by strong performance across its Focus Categories and distribution channels. He highlighted improving profitability and continued growth across its brand portfolio.
Co-founder and chief innovation officer Ghazal Alagh said innovation remained central to the company's growth strategy, with new products and formats being introduced across its portfolio.
Meanwhile, a foreign brokerage raised its target price on Honasa Consumer to Rs 700, while maintaining its 'Buy' rating. The brokerage cited strong growth across brands and sales channels, along with better-than-expected margins. It highlighted improved operating leverage, a favourable channel mix and advertising efficiency, which helped EBITDA margin expand to 12.7% despite elevated input costs. The brokerage raised its earnings estimates by 10-16% and expects the company to sustain margins at around 12.5% in H2 FY27. It also noted the company's target of achieving a 15% margin by FY30 through annual margin expansion of 100-150 basis points.
Honasa Consumer is a digital-first beauty and personal care company headquartered in India. Its portfolio comprises seven brands, including Mamaearth, The Derma Co. and Aqualogica, supported by an omnichannel distribution network.
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