Honasa Consumer expects robust FY27 growth as Mamaearth rebounds: CEO | Company News
Indian personal care company Honasa Consumer expects revenue growth to beat market expectations in fiscal 2027, its CEO told Reuters, driven by a sustained recovery of its flagship Mamaearth brand while exploring acquisitions in new categories.
Mamaearth, which Ambit Capital says accounts for more than half of Honasa’s revenue, has struggled to expand in 2024 and 2025 due to changing consumer preferences, with executives stressing they need to update its products, pricing and marketing.
Launched in 2016, the brand became popular with its line of “toxin-free” mom-and-baby products, such as facial cleansers, shampoos and hair oils.
Honasa, in an investor presentation in November, said the unit’s growth was “back in the green” in the September quarter with the launch of new products, while its Rice Facewash reached ₹100 crore ($11.02 million) in annual recurring revenue.
For the December quarter, Mamaearth recorded double-digit growth.
Honasa “now aims to increase its overall revenue in a high percentage range for fiscal 2027, CEO and co-founder Varun Alagh said on Thursday. Analysts forecast growth of 15 percent, according to data compiled by LSEG.
On Thursday, it reported a consolidated profit of ₹50.2 crore for the December quarter, almost double year-on-year, with operational revenue up 16% to ₹602 crore.
Shares rose 3% on Friday, taking the company’s market capitalization to over ₹10,000 crore.
Acquisition plan
Honasa is also banking on continued acquisitions to further fuel its growth, a strategy it launched after transitioning from a single-brand company in 2020.
Transactions in India’s consumer goods and retail sector hit a four-year high between January and September in the number of deals, according to investment bank Equirus Capital, with consumer majors such as Marico and Hindustan Unilever having since announced more acquisitions in the personal care sector.
Honasa, which has eight brands in its kitty, will continue acquisitions in the nutrition-oriented “upside down” fragrance and beauty categories if suitable targets emerge, or create such “brands”, Alagh said.
Last month, it completed the acquisition of a men’s personal care brand for nearly ₹200 crore. Currently, no deals are in the works immediately and have “no fixed size threshold for potential targets,” according to Alagh.
