Honasa Consumer Q2 profit jumps 70% to ₹40 crore

Honasa Consumer Ltd (

) reported a strong Q2FY27 update, with consolidated net profit rising 70% year-on-year to ₹40 crore and Ebitda up 60% to ₹75 crore. Revenue grew 35% YoY to ₹520 crore, driven by festive demand and new launches across Mamaearth and The Derma Co. This performance matters because Honasa has been under scrutiny for margin sustainability after aggressive brand-building spends in FY26. The Q2 margin expanded to 14.4% from 12.5% last year, showing operating leverage from scale and better ad efficiency. The company’s direct-to-consumer channel grew 40%, while offline sales rose 30%, highlighting balanced growth. Analysts point out that gross margin improvement to 68% was aided by premiumisation and higher share of skincare. However, risks remain. Competition in personal care is intensifying, with FMCG majors pushing into naturals and dermat-led categories. Honasa’s reliance on festive season spikes also raises volatility concerns. Our view: The Q2 beat strengthens FY27 earnings expectations, but sustaining margins above 14% will be key for valuation support. With the stock trading at ~55x FY27 earnings, investors should track whether Honasa can deliver consistent profitability beyond festive quarters. Watch for traction in new categories like hair serums and expansion into Tier-2 offline retail, which could drive incremental growth. Disclosure: This article is for informational purposes only and does not constitute investment advice. Please consult a SEBI-registered investment advisor before making investment decisions.