Honasa Consumer, the parent company of Mamaearth, has posted a strong first quarter for FY27. The beauty and personal care company reported its highest-ever consolidated profit after tax of Rs 90 crore. Profit rose 116.5% from Rs 41 crore in Q1 FY26.
The result is important because profit grew much faster than sales. It shows that the company has made more money from each rupee of revenue. Honasa also kept its focus on its main brands, newer names, and its offline network. These areas helped the company build a stronger base for the new financial year.
Revenue Reaches a New High
Honasa Consumer also set a new record for revenue from operations. Revenue stood at Rs 756 crore in Q1 FY27, up 27% from Rs 595 crore in the same quarter a year ago.
This rise shows that demand for the company’s products stayed strong. Honasa sells products across skin care, hair care, baby care, beauty, and wellness. Its main brands include Mamaearth, The Derma Co., Aqualogica, Dr. Sheth’s, and BBlunt.
Profit Grows Much Faster Than Sales
One of the clearest points in the Q1 result is the sharp rise in EBITDA. EBITDA stood at Rs 110 crore, up 140.7% from Rs 46 crore in Q1 FY26.
The EBITDA margin also rose to 14.6% from 7.7% a year ago. PAT margin stood at 11% in Q1 FY27, compared with 6.9% in Q1 FY26.
These numbers show a clear rise in profit quality. Sales grew at a healthy pace, but profit grew at more than twice that rate. This can happen when a company gets better use from its costs and scale. In simple terms, Honasa did not need costs to rise at the same pace as sales.
Focus Categories Lead the Growth
Honasa said its focus categories grew more than 35% in Q1 FY27. These categories form a key part of the company’s plan for future growth.
The result also shows a better phase for Mamaearth. The flagship brand returned to high-teens growth, with its focus categories as a key support. Rice Dewy Bright became the company’s number one face cleanser.
Rosemary also became the second hair ingredient at Honasa to cross Rs 100 crore in annual revenue run rate after Onion. Such results give the company more products that can support sales over a longer period.
The Derma Co. Also Had a Strong Quarter
The Derma Co. reached Rs 1,000 crore in net sales value annual revenue run rate. The brand also entered what Honasa calls the Teens EBITDA Club.
Its face cleanser category crossed Rs 200 crore in annual revenue run rate. Honasa said this made it the only FMCG company in India to build two Rs 1,000 crore brands in the last 10 years.
This is a major point for the company. Mamaearth and The Derma Co. now give Honasa two large brands with strong scale. That can reduce the pressure on one brand to carry the whole business.
Younger Brands Add Another Layer
Honasa’s younger brands grew more than 40% in the quarter. The company said these brands saw good demand across Gen Z products, premium serums, men’s skin care, hair colour, and sunscreen.
New brands can help Honasa enter fresh product areas and reach new customer groups. If these brands gain scale, they can become larger profit drivers in future years.
The company also said BTM Ventures crossed Rs 150 crore in annual revenue run rate. The business has grown more than two times since its acquisition. It has also moved beyond its South India base into Maharashtra, new channels, and new categories.
Offline Sales Gain More Strength
A major part of the Q1 story is the rise in offline sales. General Trade and Modern Trade both grew more than 40%. The company’s retail outlet reach crossed around 3 lakh FMCG outlets.
For a consumer goods company, this matters a lot. Online platforms can help a brand reach customers fast, but a large offline network can give products a more stable presence.
New Category Adds a Fresh Chance
Honasa has also entered the fragrance category with FIKN. The company describes FIKN as India’s first elixir brand. Fragrance is a large category with room for new brands, and Honasa sees a chance to build a different position in this space.
What the Result Means for Honasa
The Q1 numbers show that Honasa has entered FY27 on a strong note. Revenue growth is healthy, but the rise in profit is the bigger story. A 27% rise in revenue came with a 116.5% rise in PAT and a 140.7% rise in EBITDA.
This gap matters because it shows better business leverage. As sales rise, a larger share of each sales rupee can reach the profit line. If this trend stays in place, Honasa can build a stronger financial base over the next few quarters.
Management Sees More Room Ahead
Honasa chairman, CEO and co-founder Varun Alagh said Q1 reinforced the company’s strategy. He said growth came from both core brands and younger brands, with strong demand across General Trade, Modern Trade, and eCommerce.
The next phase, he said, will focus on new categories. The company also wants to stay close to its core brands, improve category plans, and keep discipline on capital use and talent.
The share market reaction was also positive. Honasa shares closed at Rs 481.20 on August 13, up 2.84% from the prior close. The market response came after the company posted its results. Still, share price moves can change quickly, so the quarterly figures matter more for a clear view of the business.
That makes the quarter one of the strongest periods in Honasa’s recent business history so far.
A Strong Start to FY27
Honasa Consumer’s Q1 FY27 result gives investors a clear reason to pay attention. The company posted its highest-ever quarterly PAT of Rs 90 crore, up 116.5% YoY. Revenue reached Rs 756 crore, up 27%, while EBITDA rose 140.7% to Rs 110 crore.
Mamaearth returned to high-teens growth, The Derma Co. reached Rs 1,000 crore in net sales value annual revenue run rate, younger brands grew more than 40%, and offline sales rose more than 40%.
The result does not remove the challenges ahead, but it shows that Honasa has made strong progress. The next test will be whether the company can keep this mix of sales growth, better margins, and wider brand strength through the rest of FY27.
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