Honasa bets on younger brands, new categories after Q1 profit doubles

Honasa Consumer Ltd, the parent company of Mamaearth, Aqualogica and The Derma Co, is looking to make its younger brands bigger growth engines and enter new beauty categories after more than doubling its net profit in the April-June quarter (Q1FY27).

The beauty and personal care company is also entering the fragrance market with FIKN, an elixir-focused brand targeting younger male consumers, as it seeks to broaden its portfolio beyond its established brands.

Honasa’s net profit rose 119% year-on-year to ₹90.4 crore in Q1FY27, from ₹41.3 crore a year earlier. Consolidated revenue from operations increased 27% to ₹756 crore from ₹595 crore in the year-ago quarter, according to its filings with stock exchanges on Thursday.

Younger brands gain momentum

Honasa’s younger brands, including The Derma Co, Aqualogica, Dr. Sheth’s, BBlunt, Staze and BTM Ventures’ Reginald Men—grew more than 40% in Q1 FY27, making them a key part of the company’s growth strategy.

The Derma Co reached a ₹1,000-crore annualized net sales value run rate, while brand searches rose 34% year-on-year to record levels. Face cleansers crossed a ₹200-crore annualized run rate, taking the number of categories above that threshold to three, alongside serums and sunscreens. The brand also entered what Honasa calls the “teens Ebitda club”, referring to its group of businesses growing in the teens range year-on-year.

“We are confident, in the medium term, categories like face wash and sunscreens can help many of our brands become ₹100-crore franchisees in the next 2-3 years,” Varun Alagh, chief executive of Honasa, told analysts on Thursday.

Mamaearth, Honasa’s largest brand, also accelerated to high-teens growth in the quarter. Growth was led by focus categories including shampoo, baby care and suncare, with the company recording its highest-ever quarterly sales for sunscreens.

Its Rice Dewy Bright face cleanser became its number-one face cleanser, while rosemary became its second hair-care ingredient to cross a ₹100-crore annualized revenue run rate after onion, according to the company.

A new category

Honasa is simultaneously broadening its category footprint, with FIKN marking its entry into fragrance.

“Fragrance is one of the largest beauty categories globally and India’s fastest-growing beauty category, estimating the Indian perfume market at more than ₹7,000 crore in 2026 and a 15% CAGR,” Alagh said.

FIKN, positioned as India’s first elixir brand, is targeting men aged 20-35 in metros and tier 1 cities with a premium, lifestyle-oriented proposition.

Honasa’s other Q1 innovations included new serums, sunscreens and hair-care products, as well as a perfume body mist from Aqualogica. The company said its focus categories now account for more than 85% of its business, up 450 basis points year-on-year, while e-commerce grew more than 20% during the quarter.

The improved profitability came alongside continued investment in growth. Honasa said Ebitda (earnings before interest, taxes, depreciation and amortization) margin expansion was helped by a more profitable offline channel mix, momentum in Mamaearth and The Derma Co, and improving profitability at younger brands.

Still, the company said it remains selective about entering less-penetrated categories.

“We keep looking at trends and experimenting, but we are sure we want to stick to our focus categories for now. Unless proven, we don’t want to invest big amounts of money,” Honasa co-founder Ghazal Alagh said.