Mamaearth parent Honasa Q2 profit jumps 87% to Rs 73 crore; hair colour next

Honasa Consumer, the company behind the Mamaearth and The Derma Co. beauty and personal care brands, reported a net profit of Rs 73.25 crore for July to September 2026, the second quarter of the 2026-27 financial year, up about 87% from Rs 39.23 crore a year earlier. The results were announced on Friday, 6 November 2026. Revenue from operations rose about 36% to Rs 731.19 crore from Rs 538.06 crore. The company called it its fastest growth since it listed on the stock exchanges. On the earnings call, co-founder and chief executive Varun Alagh said the company was considering an entry into hair colour through another of its brands and would say more once it launches.

India's beauty and personal care market has been crowded with brands born online, and many of them have found that selling on their own websites and marketplaces stops working at scale. Honasa has been building a set of smaller brands alongside Mamaearth and selling more through physical shops, and it credited offline expansion and its younger brands for this quarter's growth. The figures show the split clearly: the flagship brand is growing in the high teens, while the newer brands are growing much faster.

For women in the industry, both as consumers and as entrepreneurs, Honasa's path is closely watched. As a listed beauty company that began by selling online, its results are read as a test of whether such brands can earn steady profits, and this quarter it nearly doubled its profit.

The hair colour remark is worth noting. Hair colour is a large and competitive category in India, and one report puts the organised market at about Rs 7,000 to 7,500 crore. Honasa already sells hair colour through BBlunt, but a second brand would put it into more direct competition with established players. The company has not named the brand or a launch date.

Not all the growth came from more products sold. Volume growth of 31.3% against value growth of 36% means part of the rise came from higher prices and a shift in the mix of products and channels, which the company itself acknowledged.

Peepals calculation: Honasa kept a larger share of each rupee of sales as profit this quarter: about 10.0 paise per rupee of revenue (73.25 ÷ 731.19) against about 7.3 paise a year earlier (39.23 ÷ 538.06). Comparing value with volume growth, prices and product mix added roughly 3.5% to sales (1.36 ÷ 1.313 ≈ 1.035). Our calculation from the reported figures.

Short-term: The results strengthen Honasa's position as one of the larger listed beauty companies built online, and put attention on its offline expansion and its planned move into hair colour.

Long-term: Whether profits keep rising will depend on how much of the growth comes from volume rather than price increases, and on whether the younger brands can keep growing at 40% or more.

Who is affected: Shoppers of Mamaearth, The Derma Co., BBlunt and the company's other brands; shareholders; retailers stocking its products; and rival beauty and hair care companies.

Questions and Answers