Honasa profit jumps 87% as revenue grows 36%

Honasa Consumer Limited (NSE: HONASA), the parent company of Mamaearth, reported a strong Q2 FY27 performance, with consolidated revenue from operations increasing 35.9% YoY to ₹731.2 crore. Net profit surged 86.7% to ₹73.2 crore, compared with ₹39.2 crore in the corresponding quarter last year. Key Highlights • Revenue increased 35.9% YoY to ₹731.2 crore. • EBITDA nearly doubled to approximately ₹93 crore. • EBITDA margin expanded to 12.7% from 8.9%, an improvement of 389 basis points. • Underlying volume growth stood at 31.3%, indicating strong demand. • Focus categories grew over 40% and contributed more than 80% of the business. • Younger brands, including The Derma Co., Aqualogica and Dr. Sheth's, recorded growth of over 45%. • General trade secondary sales grew more than 40%. • The company generated ₹110 crore in cash during H1 FY27. My View Honasa delivered one of its stronger quarters, with revenue growth supported by both volume expansion and improving operating efficiency. The 31.3% underlying volume growth is particularly encouraging because it indicates that growth is not merely price-led. The expansion in EBITDA margin also suggests that the company is benefiting from operating leverage, better channel mix and improved marketing efficiencies. However, the sequential picture is worth monitoring. Revenue declined 3.3% and net profit fell approximately 19% compared with Q1 FY27. Sustaining this growth while building profitability across multiple brands will be the real test. What I'm Watching Next The key question is whether Honasa can maintain strong volume growth without significantly increasing customer acquisition and marketing costs. Stance: Positive on volume growth, brand diversification and margin improvement, but cautious about sequential moderation and the sustainability of growth. Disclosure: I do not have any holding or position in the stock mentioned above. HONASA