Now Reading: Mamaearth parent Honasa Q1 net profit jumps 119% to Rs 90.4 crore
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Mamaearth parent Honasa Q1 net profit jumps 119% to Rs 90.4 crore
Mamaearth parent Honasa Q1 net profit jumps 119% to Rs 90.4 crore
Honasa Consumer, the parent of Mamaearth, more than doubled its consolidated net profit to Rs 90.4 crore in Q1 FY27, up 119% year-on-year. Operating revenue rose 27% to Rs 755.9 crore, driven…
The Story in Brief
Honasa Consumer, the parent of Mamaearth, more than doubled its consolidated net profit to Rs 90.4 crore in Q1 FY27, up 119% year-on-year. Operating revenue rose 27% to Rs 755.9 crore, driven by strong growth across brands like The Derma Co and younger labels. Sequentially, profit grew 30% and revenue 15%. The company recorded its highest-ever quarterly profit and EBITDA, which more than doubled to Rs 110 crore.
Honasa said a change in Flipkart’s settlement mechanism reduced reported revenue by Rs 29 crore but did not affect absolute profitability. On a like-for-like basis, revenue stood at Rs 785 crore, up 31.8%. CEO Varun Alagh highlighted that younger brands grew over 40%, and recently acquired brand Reginald Men crossed Rs 150 crore ARR. Brokers Jefferies and Citigroup raised price targets but remain divided on whether the growth momentum can last.
The Indian Opinion
A soaring profit and a rising stock price make Honasa look unstoppable, but the split between Jefferies and Citigroup on whether this growth is sustainable is the real story. The company's margin gains come partly from a change in Flipkart's settlement mechanism, an accounting tweak, not a structural shift. Investors should watch whether Honasa can maintain a 14% EBITDA margin without relying on such adjustments, and whether newer brands like FIKN actually deliver profits, not just revenue.
Sources (3): inc42.com, ndtvprofit.com, ndtvprofit.com (2)
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
