Honasa Consumer Limited, the parent of Mamaearth, has delivered an impressive turnaround in Q2 FY26, swinging back to profitability after a challenging year prior. The company posted a consolidated net profit of ₹39.2 crore for Q2 FY26, compared to a loss of ₹18.6 crore in Q2 FY25—a clear sign of regained momentum and improved cost discipline.
Financial Performance: Q2 FY26 vs Q1 FY26 & Q2 FY25
| Period | Revenue from Operations | Net Profit | YoY Revenue Growth | QoQ Revenue Growth | YoY Net Profit Change | QoQ Net Profit Change |
|---|---|---|---|---|---|---|
| Q2 FY25 | ₹461.8 crore | -₹18.6 crore | – | – | – | – |
| Q1 FY26 | ₹595 crore | ₹41.3 crore | +7.4% (YoY) | – | +2.7% (YoY) | +65% (vs previous Q) |
| Q2 FY26 | ₹538.1 crore | ₹39.2 crore | +16-17% (YoY) | -9.6% (QoQ) | From loss to profit | -5% (QoQ) |
- Revenue: Q2 revenue rose 16-17% year-on-year to ₹538-539 crore, up from ₹461.8 crore in Q2 FY25.
- Quarter-on-Quarter Impact: Revenue declined ~9.6% sequentially from Q1 FY26’s record ₹595 crore, reflecting some seasonal/shipment moderation or portfolio rationalization.
- Profit: Net profit in Q2 FY26 was up sharply YoY, reversing losses last year, though down 5% QoQ compared to ₹41.3 crore in Q1 FY26.
- EBITDA: The company’s EBITDA for Q2 was ₹47-48 crore, compared to a loss in Q2 FY25, with EBITDA margins improving to 8.4–8.8%.
Operational Highlights and Drivers
- Underlying Volume Growth: UVG for Q2 FY26 stood at 16.7%, underscoring strong demand and core business resilience.
- Focus Categories: “Focus” portfolio contributed over 75% to revenues, with core BPC (beauty and personal care) brands such as Mamaearth and others maintaining steady double-digit growth.
- Offline Expansion: Analysts (Jefferies, ICICI Securities) cite the company’s deepening market presence and growing contribution of offline channels among the key drivers behind profit recovery.
- Gross Margins/Expenses: Stable gross margins (70%+) and moderate expense growth contributed to the bottom line despite softer quarter-on-quarter topline.
Market Response and Analyst Views
Shares of Honasa Consumer surged up to 9.4% intraday post-results, stabilizing at +4.4% higher (₹294.40) by mid-session, and pushing market cap past ₹9,500 crore (~$1.1 billion).
- Brokerages:
Strategic Outlook
Chairman & CEO Varun Alagh highlighted the company’s “category-first strategy,” deeper distribution, and offline expansion as key pillars of the sustained turnaround. Honasa’s Q2 performance demonstrates that a sharper focus on operational discipline, brand-led growth, and channel expansion can drive repeat profitability and position the group as a leader in India’s rapidly growing personal care sector.
Read this: Ghazal Alagh Launches New Startup ‘Luminéve’, a Night-Time Skincare Brand, Partners with Nykaa
Honasa Consumer’s strong Q2 showing—marked by a sharp move back to profits and robust underlying growth—signals not just resilience but renewed momentum as it sets sights on further omnichannel expansion and portfolio innovation in the coming quarters.
Read this: Mamaearth Launches Product Range for Babies with Sensitive Skin, Partners with Leading Doctors
