Honasa Q1 FY27: Margin jump, offline scale, and a fragrance bet

On a like-for-like basis, revenue from operations was INR 785 crore (+31.8% YoY), EBITDA was INR 110 crore (14.1% margin), and PAT was INR 90 crore (11.5% margin). Reported revenue from operations was INR 756 crore.

The company stated that a change in settlement by Flipkart group impacted revenue recognition, creating an estimated INR 29 crore impact on topline in Q1 FY27. The company said this has no impact on contribution margin or absolute profitability.

Management attributed margin improvement to higher mix of profitable B2B channels led by offline, strong growth in profitable brands (including Mamaearth and The Derma Co), improving profitability of younger brands via better A&P efficiency, operating leverage across overheads, and a one-time ESOP reversal benefit.

The presentation stated eCommerce grew 20%+ YoY, General Trade secondary sales grew 40%+ YoY, and Modern Trade offtake grew 40%+ YoY in Q1 FY27.

Management said Mamaearth accelerated to high-teens growth, and The Derma Co crossed INR 1,000 crore NSV ARR and entered the teens EBITDA club. BTM Ventures (Reginald Men) was stated to be at INR 150 crore plus annual revenue run rate.

FIKN is Honasa’s new fragrance brand positioned as India’s first elixir brand. The company stated it has 30% fragrance oil and is clinically tested for 12-hour long stay. Management said fragrance is underpenetrated in India and is a fast-growing category, motivating entry via a dedicated fragrance-first brand.