Honasa Consumer expects robust FY27 growth as Mamaearth rebounds: CEO | Company News
Indian personal care company Honasa Consumer expects revenue growth above market expectations for fiscal 2027, led by a sustained recovery at its flagship Mamaearth brand, as it explores acquisitions in new categories, it told Reuters.
Mamaearth, for which Ambit Capital accounts for more than half of Honasa’s revenue, has struggled to grow in 2024 and 2025 due to changing consumer preferences, and executives have stated that it needs to revamp its products, pricing and marketing.
Launched in 2016, the brand gained popularity for its range of “toxin-free” maternal and baby products, including face washes, shampoos and hair oils.
Honasa said in an investor presentation in November that the unit’s growth in the September quarter “turned green again” with the launch of new products, while Rice Face Wash reached ₹100 crore ($11.02 million) in annual recurring revenue.
Mamaearth reported growth in the double-digit percentage range for the December quarter.
Honasa aims to grow total revenue in the high-teens percent range for fiscal 2027, CEO and co-founder Varun Alagh said on Thursday. Analysts are forecasting growth of 15 percent, according to data compiled by LSEG.
It on Thursday reported a consolidated profit of ₹50.2 crore for the December quarter, almost double year-on-year, with revenue from operations rising 16 per cent to ₹602 crore.
Shares traded 3 per cent higher on Friday, taking the company’s market capitalization to over 10,000 crore.
acquisition plan
Honasa is also counting on continued acquisitions to fuel further growth, a strategy it launched after transitioning from being a single-brand company in 2020.
Deals in India’s consumer goods and retail sector reached a four-year high in terms of number of deals in January-September, according to investment bank Equirus Capital, while major consumer companies such as Marico and Hindustan Unilever have announced more personal care acquisitions since then.
Alagh said Honasa, which has eight brands under its belt, will continue to make acquisitions or create such brands in the “inside-out” beauty categories focused on fragrance and nutrition if suitable targets emerge.
Last month, the acquisition of a men’s personal care brand was completed for approximately Rs 200 million. According to Alagh, there are no immediate actions currently being worked on and there is no fixed size threshold for potential targets.
