Honasa Consumer expects robust growth for FY27 as Mamaearth recovers: CEO

Indian personal care company Honasa Consumer expects revenue growth above market expectations for fiscal 2027, its CEO told Reuters, led by a continued recovery of its flagship brand Mamaearth and exploring acquisitions in new categories.

Mamaearth, which represents more than half of Honasa’s revenue, according to Ambit Capital, struggled to grow in 2024 and 2025 due to changing consumer preferences, with executives noting they needed to revamp products, pricing and marketing.

The brand was launched in 2016 and became popular for its range of ‘toxin-free’ products for mother and baby, such as face washes, shampoos and hair oils.

Honasa said in an investor presentation in November that the unit’s growth was “back in the green” in the September quarter with the launch of new products, while its Rice Facewash delivered annual recurring sales of ₹100 crore ($11.02 million).

For the December quarter, Mamaearth reported double-digit growth.

Honasa now aims to grow its total revenue in the high teens for fiscal 2027, CEO and co-founder Varun Alagh said Thursday. Analysts predict growth of 15 percent, according to data collected by LSEG.

On Thursday, it 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.

The shares traded 3 per cent higher on Friday, taking the company’s market capitalization to over ₹10,000 crore.

Acquisition blueprint

Honasa is also counting on continued acquisitions to fuel further growth, a strategy that took off after it transitioned from a single-brand company in 2020.

Deals in India’s consumer goods and retail sectors hit a four-year high in January-September in terms of the number of deals per investment bank Equirus Capital, with major consumer markets such as Marico and Hindustan Unilever having since announced more acquisitions in the personal care space.

Honasa, which has eight brands in its portfolio, will pursue acquisitions in fragrance and nutrition-focused “inside-out” beauty categories if suitable targets arise, or build such brands, Alagh said.

Last month, it completed the acquisition of a men’s personal care brand for nearly ₹200 crore. Currently, there are no direct transactions in the works and no set size threshold for potential targets, Alagh said.