Honasa Consumer Q2 FY27 results: net profit down 8.4% to ₹71.70 crore, revenue down 37.9%

How did Honasa Consumer perform in Q2 FY27?

Honasa Consumer reported standalone revenue from operations of ₹689.40 crore in Q2 FY27, against ₹1,110 crore in Q2 FY26 and ₹696.32 crore in Q1 FY27. Total income was ₹710.51 crore, while EBITDA rose to ₹87.35 crore from ₹85.05 crore a year earlier and fell from ₹99.71 crore in the previous quarter. EBITDA margin was 12.7%, compared with 7.7% a year earlier and 14.3% in the previous quarter.

Standalone profit before tax was ₹97.64 crore, compared with ₹105.29 crore in Q2 FY26 and ₹111.25 crore in Q1 FY27. After tax of ₹25.94 crore, net profit was ₹71.70 crore, down from ₹78.25 crore a year earlier and ₹84.31 crore in the previous quarter. Basic EPS was ₹2.20, against ₹2.40 in Q2 FY26 and ₹2.59 in Q1 FY27. The company also filed consolidated results for the same quarter and half year, while the figures used here are standalone.

What changed in Honasa Consumer's costs and profit?

Total expenses fell to ₹612.87 crore in Q2 FY27 from ₹1,048 crore in Q2 FY26, even as other expenses, including advertising, remained ₹322.91 crore. Employee cost fell to ₹67.23 crore from ₹113.13 crore, depreciation declined to ₹8.29 crore from ₹17.69 crore, and finance costs fell to ₹2.53 crore from ₹5.40 crore. The cost of materials was ₹0 crore in both quarters, with no exceptional item reported.

Other income fell to ₹21.11 crore from ₹43.33 crore a year earlier. Tax was lower at ₹25.94 crore, compared with ₹27.04 crore in Q2 FY26. Management attributed the year-on-year EBITDA margin expansion to A&P and mix efficiencies, favourable channel mix and operating leverage; the investor presentation also said that A&P spending rose in absolute terms while declining as a proportion of revenue.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹2,227.84 crore, compared with ₹2,006.68 crore at 31 March 2026, and total equity was ₹1,463.78 crore against ₹1,396.1 crore. The company reported no borrowings at either date. Cash was ₹111.35 crore, compared with ₹101.84 crore, while inventories rose to ₹203.66 crore from ₹147.0 crore and trade receivables increased to ₹244.45 crore from ₹196.08 crore.

Operating cash flow for the first half of FY27 was ₹97.66 crore, compared with negative ₹5.95 crore in the first half of FY26. Investing cash flow was negative ₹77.94 crore against positive ₹19.08 crore, financing cash flow was negative ₹10.21 crore against negative ₹13.80 crore, and capital expenditure was ₹2.90 crore against ₹3.67 crore. Management also reported H1 cash generation of ₹110 crore.

How has Honasa Consumer done over the last 8 quarters?

Revenue increased from ₹470.55 crore in Q3 FY25 to a peak of ₹1,110.32 crore in Q2 FY26 before declining to ₹587.44 crore in Q3 FY26. It then rose to ₹696.32 crore in Q1 FY27 and eased to ₹689.40 crore in Q2 FY27. EBITDA margin bottomed at 4.4% in Q4 FY25, reached a peak of 14.3% in Q1 FY27 and eased to 12.7% in Q2 FY27. Net profit was ₹71.70 crore in the latest quarter, below ₹84.31 crore in the preceding quarter.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026 on 6 November 2026, following the Audit Committee’s recommendation. The filing also included limited review reports from the statutory auditors. The same-day filings and excerpts do not report a dividend, fund raise or appointment.

What did Honasa Consumer's management say?

Management said the quarter’s revenue growth was volume-led, with underlying volume growth of 31.3%, and identified A&P and mix efficiencies, a favourable channel mix and operating leverage as drivers of the 12.7% EBITDA margin. It said focus categories grew 40%+, while eCommerce posted 20%+ growth and General Trade and Modern Trade posted 40%+ secondary-sales or offtake growth. The presentation said the Modern Trade footprint covered more than 90% of the store universe.

Management said Mamaearth continued its high-teens growth trajectory with mid-teens EBITDA, while younger brands accelerated to 45%+ growth. It also highlighted a category shift in hair colour from grey coverage towards styling and safer formulations, supported by innovation and consumer and clinical efficacy studies. No formal financial guidance was disclosed. Management identified softer gross margin, a larger inventory build and lower cash balances as watch items.

How did Honasa Consumer shares react?

Honasa Consumer rose 1.0% after five minutes from the price at which the filing appeared, fell 1.1% after 15 minutes and rose 1.7% after 30 minutes. By the close of the first session that could trade on the result, the stock was down 3.3% from its previous close of ₹481.65, against a 1.4% fall for the Personal Care industry median, underperforming it by 1.9 percentage points.

Earlier reaction-day moves were 4.8% on 13 August 2026, 5.0% on 21 May 2026, 1.4% on 12 November 2025 and 4.9% on 12 August 2025. The stock also rose 20.0% on 22 May 2025 and 10.2% on 12 February 2025, before falling 21.4% on 14 November 2024.

How did other Personal Care companies do?

Seven other Personal Care companies had filed results for the quarter by 6 November 2026. Their median revenue growth was 11.6%, while two peers grew more slowly than Honasa Consumer and five grew faster. All seven peers reported higher profit.