Honasa Consumer profit jumps nearly 3x to Rs 69 crore in Q4 FY26, announces first dividend

Honasa Consumer, the parent company of Mamaearth, has reported a sharp rise in profits for the fourth quarter and full financial year ending 31 March 2026, driven by higher sales and continued growth across its brands.

The Gurugram-based company said consolidated revenue from operations rose to Rs 657 crore in the January-to-March quarter, up from Rs 534 crore a year earlier.

Its PAT for the quarter nearly tripled to Rs 69.4 crore, compared with Rs 25 crore in the same period last year.

For the full financial year, revenue from operations increased 15.7% to Rs 2,392 crore, while annual profit climbed to Rs 200.2 crore from Rs 72.7 crore in FY25.

Honasa said The Derma Co. continued to grow strongly in Q4FY26, with its face cleanser business doubling year-on-year during the quarter. The brand also expanded its offline presence to more than 30,000 general trade outlets.

The company also said its men’s grooming label, Reginald Men, crossed an annual recurring revenue run rate of Rs 100 crore.

Total quarterly expenses rose 13.8% to Rs 594 crore, driven by higher employee costs, marketing spending and procurement expenses.

Employee benefit expenses increased 49.4% year-on-year to Rs 71 crore, while purchases of traded goods stood at Rs 222.5 crore. Net procurement cost, after inventory movement, was about Rs 195 crore, compared with about Rs 156 crore in the same quarter last year.

Despite the increase in costs, earnings improved significantly as revenue growth outpaced expenditure.

On a standalone basis, quarterly profit after tax rose to Rs 64.5 crore from Rs 24.6 crore a year earlier, while annual standalone profit increased to Rs 190.8 crore from Rs 69 crore.

The company’s consolidated cash and cash equivalents rose to Rs 119 crore at the end of FY26, compared with Rs 33 crore at the beginning of the year.

The board recommended a maiden final dividend of Rs 3 per equity share, subject to shareholder approval, resulting in a total payout of around Rs 98 crore.

The company also updated investors on the utilisation of its IPO proceeds. Of the Rs 350.49 crore earmarked in its prospectus, Rs 315.27 crore had been utilised by the end of March 2026.

The spending included Rs 177.34 crore on advertising and brand awareness, Rs 8.78 crore for setting up exclusive brand outlets, Rs 7.26 crore invested in subsidiary BBlunt for salon expansion, and Rs 121.89 crore for corporate purposes and potential acquisitions.

Commenting on the company’s Q4FY26 performance, Varun Alagh, Chairman, CEO and Co-founder of Honasa Consumer Limited, said: “FY26 was a year of strengthening the core and building a more resilient growth engine for the future. Over the last few quarters, we stayed sharply focused on the six pillars that defined our strategy for the year - improving execution across our Focus Categories, strengthening Product Superiority, scaling Hero Products, sharpening our content engine, rebuilding momentum in Offline Distribution, and unlocking Innovation Engines.”

He said, “These efforts, combined with the right category playbooks, stronger execution discipline, and focused leadership hiring across key functions, started reflecting meaningfully in our performance trajectory. We delivered three consecutive quarters of 20%+ growth, with Q4 FY26 becoming our highest-ever quarter in both revenue and EBITDA. This year we also announced our first-ever dividend, reflecting the confidence we have in the long-term strength and direction of the business.”

“The momentum is now visible across brands and channels. Mamaearth continued to gain market share across key categories, according to NielsenIQ. Our Hero SKUs grew 2x+ faster than the brand, led by products like Ubtan Face Wash and Onion Shampoo, as well as newer launches such as Rice Face Wash and Rosemary Anti-Hair Fall Shampoo, which continue to scale meaningfully. Our younger brands also maintained strong momentum, growing 40%+ during the year. In its first quarter of consolidation, Reginald Men crossed an ARR of INR 100 Cr+, doubling its revenue YoY,” he added.

“At the same time, our investments across AI-led content systems, R&D, product innovation, and distribution infrastructure are beginning to reflect in stronger execution quality across the organization. Going forward, we remain focused on building a future-ready House of Brands through sharper category playbooks, disciplined capital allocation, stronger talent density, and sustained profitable growth,” Varun said.