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Revenue
₹538 Cr
verified against source
Revenue YoY
22.5%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Honasa Consumer delivered a strong Q2 FY26 with 22.5% revenue growth to ₹566 crore, driven by core category focus and turnaround of Mama Earth. Gross margins hit an all-time high of 71.9%, while EBITDA margin remained stable at 8.4% and PAT stood at ₹39 crore. The Flipkart settlement change reduced reported revenue by ₹48 crore but had no profit impact. Management guided for high single-digit growth in Mama Earth next quarter, targeting double-digit by Q4, and aims to expand EBITDA margins by 50-100 bps annually. Focus categories now contribute 75% of revenue, with a target of 84-85% over 4-6 quarters. New brand launches (Lumi in prestige skincare, minority stake in oral care brand Fa) signal long-term growth engines. Risk: Execution challenges in scaling new brands and managing supply chain complexity in color cosmetics.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects Mama Earth to grow high single digits in Q3 and reach double-digit growth by Q4 FY26, driven by core category focus and improved media mix.
- The company targets unlocking 50-100 basis points of operating margin improvement each year through procurement efficiencies, mix shift, and marketing leverage.
- Management aims to increase contribution from core categories from current 75% to 84-85% over the next 4-6 quarters by focusing investments.
- Dermaco is targeting ₹1,000 crore+ revenue in the next 1-2 years by expanding into moisturizer and shampoo categories and offline distribution.
Risks flagged
- The change in Flipkart's settlement process reduces reported revenue by ₹48 crore per quarter, making like-for-like comparisons complex and potentially masking underlying growth.
- New brand launches in prestige skincare and oral care require strong foundations and may not deliver immediate returns; management declined to provide revenue projections.
- The color cosmetics brand (Staze) faces supply chain challenges including reliance on China for packaging, though management claims progress on the learning curve.
- Management acknowledged the wellness trend but has no concrete strategy yet, deferring detailed discussion to one-on-one meetings, indicating potential missed opportunity.
Key quotes
- We believe this is probably a first-to-world innovation in terms of brand positioning where a brand that specifically focuses on night care is what we have developed.
- We believe we will now stay at least at this even in the coming quarters.
- We've indicated that every year we target to unlock 50 to 100 bps of operating margin profile which will be a mix of all these initiatives.
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