Honasa Expects 30% Revenue Growth in Q1 FY27, Targets Double-Digit Margins

What’s Driving Honasa Consumer’s Strong Q1 FY27 Growth Outlook?

Honasa Consumer, the parent company of Mamaearth, expects a robust start to FY27, projecting around 30% year-on-year revenue growth in the first quarter, driven by healthy demand across its brand portfolio and sustained momentum in its offline business.

In its quarterly business update, the company said reported revenue growth is expected to be in the mid-twenties after accounting for a change in revenue recognition related to the Flipkart Group. According to Honasa, the adjustment stems from revised settlement practices for marketplace sellers and does not reflect any slowdown in underlying business performance.

The update indicates that Honasa continues to benefit from improving consumer demand, wider distribution, and the growing popularity of its premium personal care brands.

How Did Mamaearth and Other Brands Perform?

Honasa’s flagship brand Mamaearth is expected to deliver high-teen year-on-year growth during the quarter. The company attributed this performance to improving consumer demand and continued expansion of its offline distribution network.

Meanwhile, Honasa’s younger brands are expected to significantly outpace the flagship business. Brands including The Derma Co., Aqualogica, BBlunt, Dr. Sheth’s, Staze, Lumineve, and Reginald Men are projected to grow in the early forties, highlighting increasing consumer acceptance across multiple beauty and personal care categories.

The strong performance across its portfolio reflects Honasa’s strategy of building multiple digital-first brands catering to different customer segments rather than relying solely on Mamaearth.

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Why Is Offline Business Becoming a Key Growth Driver?

While Honasa built its business through digital-first channels, the company said its offline business remained the biggest growth driver during the quarter.

Growth was supported by stronger distribution across general trade, improved execution in modern retail stores, and expansion of its direct retail reach. The company has been steadily increasing its physical presence across India to complement its online sales channels.

At the same time, Honasa said its online business also continued to record healthy growth, demonstrating balanced performance across both digital and offline distribution.

This omnichannel approach has become increasingly important as beauty and personal care brands seek to reach consumers across multiple shopping platforms.

How Is Honasa Managing Profitability?

Alongside strong revenue growth, Honasa expects to maintain double-digit operating margins during the first quarter of FY27.

The company said improved profitability is being supported by operating leverage, as higher sales volumes help spread fixed costs across a larger revenue base. Maintaining healthy margins while investing in brand building and distribution remains a key priority for the company.

However, Honasa clarified that the quarterly business update remains provisional and should not be treated as its formal financial results or earnings guidance.

The company will announce its detailed Q1 FY27 financial results after receiving approval from its board of directors.

What Does This Mean for Honasa’s Growth Strategy?

The latest business update suggests Honasa is entering FY27 with strong momentum across both its flagship and emerging brands. Continued investment in offline expansion, product innovation, and portfolio diversification appears to be supporting healthy growth despite a competitive beauty and personal care market.

The strong performance of brands such as The Derma Co. and Dr. Sheth’s also demonstrates Honasa’s ability to build multiple consumer brands beyond Mamaearth, reducing dependence on a single product portfolio.

As India’s beauty and personal care market continues to expand, investors will closely monitor whether the company’s strong revenue growth also translates into sustained profitability over the coming quarters.

At 10:03 AM, Honasa Consumer’s shares were trading at ₹467.25, giving the company a market capitalisation of approximately ₹15,250 crore.