Honasa reports Rs 39 crore net profit in Q2 FY26; CEO Varun Alagh says, 'Mamaearth back in green'

Honasa Consumer Ltd., the parent company of Mamaearth, reported another quarter of steady growth for the three months ended September 30, 2025 (Q2 FY26), driven by innovation, category depth, and brand diversification.

The Gurugram-based beauty and personal care company posted a consolidated profit after tax (PAT) of Rs 39 crore in Q2, compared to a loss of Rs 18.56 crore in the year-ago period.

Revenue from operations on a like-for-like basis stood at Rs 566 crore, marking a 22.5% year-on-year increase, while EBITDA remained stable at Rs 48 crore, representing an 8.4% margin. The company’s gross profit stood at 71.9%, supported by sustained improvement in operational efficiency and cost management.

Mamaearth, its flagship brand, regained growth momentum with a 123-basis point market share gain in face cleansers, according to NielsenIQ. The brand’s Rice Facewash also entered the Rs 100 crore annualised revenue club, joining its Ubtan and Vitamin C ranges. Meanwhile, The Derma Co. crossed the Rs 750 crore annual recurring revenue (ARR) mark and was recognised by Euromonitor as India’s No. 1 sunscreen brand for 2024.

Honasa’s emerging brands grew over 20% year-on-year during the quarter, maintaining momentum across focus categories. Its unit volume growth stood at 16.7%, reflecting strong consumer demand. General trade distribution expanded with a 35% year-on-year increase in direct outlets billed during the first half of FY26, further strengthening the company’s offline reach.

Innovation continued to be a key driver of growth. The company launched Luminéve, its first prestige skincare brand, exclusively on Nykaa, marking its entry into the premium night skincare segment. It also invested in Fang Oral Care, a prestige oral wellness brand, by acquiring a 25% stake for up to Rs 10 crore.

In terms of expenditure, the cost of product procurement accounted for 32% of total spending, rising to Rs 159 crore in Q2 FY26 from Rs 144 crore a year ago. Employee benefits increased to Rs 60 crore, while marketing, legal, and other overheads declined 9% year-on-year, keeping total expenses largely flat at Rs 505 crore.

For the first half of FY26, Honasa’s consolidated revenue reached Rs 1,133 crore, up 12% from Rs 1,016 crore in the same period last year, while profit surged 3.7 times to Rs 80.5 crore.

Chairman and CEO Varun Alagh said the company’s performance reflects “the strength and consistency of our growth playbook” and added that Honasa will continue to scale its “House of Purposeful Brands” through innovation and brand-building across India.