Honasa Consumer Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Honasa Consumer Ltd filed with BSE on 28 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Honasa Consumer reported Q4 FY26 revenue of INR682 crores, up 28% year-on-year on a like-for-like basis, with EBITDA scaling nearly 2.5x over the prior year to INR77 crores at 11.3% margin. For full year FY26, the company delivered 20% year-on-year growth, tripled its EBITDA to 9.3% margin, and generated INR200 crores of PAT, while announcing its first-ever dividend of INR3 per equity share. Management attributed growth to focus categories, younger brands including the newly acquired Reginald Men, and continued strength in The Derma Co and Mamaearth.
Numbers mentioned
Revenue: INR682 crores (Q4 FY26)
p. 3
“Overall, INR682 crores in quarterly revenue, 71.4% gross margin, which has expanded by 70 basis points Y-o-Y.”
Varun Alagh, page 3 of the filed PDF · View the filing
EBITDA margin: 11.3% (Q4 FY26)
p. 3
“EBITDA at INR77 crores, which is 11.3%.”
Varun Alagh, page 3 of the filed PDF · View the filing
PAT margin: 10.2% (Q4 FY26)
p. 3
“Our PAT at INR69 crores, which is 10.2%.”
Varun Alagh, page 3 of the filed PDF · View the filing
Revenue growth: 28% Y-o-Y (Q4 FY26)
p. 3
“We've delivered 28% Y-o-Y growth with EBITDA scaling almost 2.5x over last year same quarter.”
Varun Alagh, page 3 of the filed PDF · View the filing
Full year EBITDA margin: 9.3% (FY26)
p. 5
“And this is where we have tripled our EBITDA, taking the full year EBITDA to about 9.3% EBITDA margin, keeping in line with the promise that we will continue to improve our EBITDA by the tune of about 100 basis points every year.”
Varun Alagh, page 5 of the filed PDF · View the filing
Full year PAT: INR200 crores (FY26)
p. 5
“and we've delivered INR200 crores PAT for the full year this year.”
Varun Alagh, page 5 of the filed PDF · View the filing
Dividend per share: INR3 per equity share (FY26)
p. 4
“the Board has decided to reward shareholders with a dividend straight off with INR3 per equity share.”
Varun Alagh, page 4 of the filed PDF · View the filing
Total dividend payout: INR98 crores (FY26)
p. 4
“And the total cash payout will be about INR98 crores as a part of this dividend.”
Varun Alagh, page 4 of the filed PDF · View the filing
Focus categories growth: 35% Y-o-Y (FY26)
p. 4
“They have grown by 35% Y-o-Y.”
Varun Alagh, page 4 of the filed PDF · View the filing
Younger brands growth: almost 40% (Q4 FY26)
p. 4
“The younger brands, of course, continue to dominate growth, growing at almost 40% with now the inclusion of Reginald Men as well which we acquired.”
Varun Alagh, page 4 of the filed PDF · View the filing
Reginald revenue growth: 100% plus (Q4 FY26)
p. 5
“And the brand has actually grown by 100% plus and doubled its revenue Y-o-Y.”
Varun Alagh, page 5 of the filed PDF · View the filing
The Derma Co ARR: INR750 crores-plus
p. 11
“As we disclosed, it was at INR750 crores-plus. It continues to grow on from there.”
Varun Alagh, page 11 of the filed PDF · View the filing
Like-for-like growth excluding Reginald: 21% (Q4 FY26)
p. 11
“So, from a growth perspective, 21% will be the like-for-like growth.”
Varun Alagh, page 11 of the filed PDF · View the filing
Younger brands growth excluding Reginald: 28%-plus (Q4 FY26)
p. 12
“Yes, they are at 28%-plus.”
Varun Alagh, page 12 of the filed PDF · View the filing
Growth from products launched in last year: 7% to 8% (FY26)
p. 8
“So if we look at just the products launched in last 1 year, Manoj, that growth would be to the tune of about 7% to 8%.”
Varun Alagh, page 8 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Mamaearth brand growth — double-digit CAGR · next 5 years
stated as an aspiration by Varun Alagh
p. 6
“So, we're fairly confident of delivering a double-digit CAGR on the brand from the next 5 years perspective.”
Varun Alagh, page 6 of the filed PDF · View the filing
Company revenue growth — high-teens CAGR · next 5 years
stated as an aspiration by Varun Alagh
p. 10
“But we are fairly confident of delivering our high-teens CAGR over the next 5 years that we've talked about and along with this 500 basis points EBITDA expansion in the same period.”
Varun Alagh, page 10 of the filed PDF · View the filing
EBITDA margin expansion — 500 basis points · next 5 years
stated as an aspiration by Varun Alagh
p. 10
“Our internal plan is to make sure, even from here in 5 years, we are able to improve 500 basis points on our bottom line.”
Varun Alagh, page 10 of the filed PDF · View the filing
Price increases
stated conditionally by Varun Alagh
p. 10
“So we don't impact at least at this point of time with where crude is at this point of time. We don't expect any further price increases.”
Varun Alagh, page 10 of the filed PDF · View the filing
Reginald Men distribution expansion — next quarter
stated firmly by Varun Alagh
p. 9
“So probably by next time when we meet, you will be able to find the brand on the platforms that you're looking for.”
Varun Alagh, page 9 of the filed PDF · View the filing
Young brands and focus categories growth — FY27
stated as an aspiration by Varun Alagh
p. 13
“We expect the young brands to continue to grow strongly and drive growth for the company in the next year as well.”
Varun Alagh, page 13 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management expects double-digit CAGR growth driven by share gains in focus categories and distribution expansion from 200,000 to potentially 0.5 million outlets.
Answered by Varun Alagh
Asked by Vivek: How does management see the Mamaearth brand growing into FY27 and over a 3-year perspective given its offline penetration opportunity?
p. 6
“We also see distribution gain opportunities given the brand is only 200,000 outlets and potentially can get to 0.5 million outlets over the next 3 to 5 years.”
Varun Alagh, page 6 of the filed PDF · View the filing
Management said TDC benefited from being in the right segment at the right time and is a strategic priority, while other brands like Aqualogica are younger and at different stages of their trajectory.
Answered by Varun Alagh
Asked by Vivek: Is it correct that TDC has performed better than expected while Aqualogica has underperformed?
p. 8
“Rest all the brands are actually much younger, Aqualogica is 2 years later than Derma Co., actually 2.5 in terms of its birth year and month.”
Varun Alagh, page 8 of the filed PDF · View the filing
Products launched in the last year contributed about 7-8% of growth, though management now views innovation on a 3-year horizon rather than 1-year.
Answered by Varun Alagh
Asked by Manoj Menon: How much of overall growth is driven by products launched in the last year versus existing products?
p. 8
“I mean, now we've also started to look at our innovations more from a 3-year horizon than 1-year horizon because it's unfair to see and leave innovations in just 1 year”
Varun Alagh, page 8 of the filed PDF · View the filing
Management identified three growth axes for Reginald: distribution expansion, category expansion beyond sunscreen, and geographic expansion beyond South India.
Answered by Varun Alagh
Asked by Manoj Menon: What is management's initial take on Reginald Men and its qualitative growth prospects?
p. 9
“So that is one axis on which we see the brand growing.”
Varun Alagh, page 9 of the filed PDF · View the filing
Management said advertising as a percentage of sales declines even as absolute spend rises, generating leverage alongside channel and OpEx spend leverage.
Answered by Varun Alagh
Asked by Umang Shah: What led to advertising expense growth while other expenses declined, and how is management balancing margins versus growth investment?
p. 9
“In general, advertising as a value spend is something that we have talked about, will go up. But as percentage, it comes down.”
Varun Alagh, page 9 of the filed PDF · View the filing
The CFO explained the decline reflects the Flipkart settlement and GT charges impact on reported numbers rather than a true like-for-like reduction, plus scale benefits.
Answered by Raman Preet Sohi
Asked by Umang Shah: Why did other expenses decline for the full year and Q4?
p. 10
“So the other expenses that you see around 15% for Q4 are actually around 18%. And last year, it was about 22% same quarter.”
Raman Preet Sohi, page 10 of the filed PDF · View the filing
Management said calibrated price increases have already been executed in Q1 in line with competition to offset COGS inflation, and no further increases are expected currently.
Answered by Varun Alagh
Asked by Nitin: How is the company placed with input cost inflation and plans for price hikes?
p. 10
“And those have already been sort of executed as we speak in Q1.”
Varun Alagh, page 10 of the filed PDF · View the filing
Management said The Derma Co is the largest actives brand in the country per Euromonitor and Nielsen data.
Answered by Varun Alagh
Asked by Nitin: How is Honasa positioned in actives versus larger competitors like HUL's Minimalist?
p. 11
“And in fact, even according to Euromonitor data, it is the largest actives brand in the country.”
Varun Alagh, page 11 of the filed PDF · View the filing
Like-for-like growth excluding Reginald would be 21%, with only a 30 basis points EBITDA impact from Reginald.
Answered by Varun Alagh
Asked by Mehul Desai: What would core business growth look like excluding Reginald from sales and EBITDA?
p. 11
“So, from a growth perspective, 21% will be the like-for-like growth. And from an EBITDA perspective, the impact will be just about 30 basis points.”
Varun Alagh, page 11 of the filed PDF · View the filing
Management said premiumization has been the underlying hypothesis for all its brands, serving the emerging middle class with aspirational propositions, and expects this trend to continue for decades.
Answered by Varun Alagh
Asked by Yogeeta: What is management's strategy for driving premiumization in skincare and haircare?
p. 12
“So honestly, our underlying hypothesis around all our brands has been premiumization.”
Varun Alagh, page 12 of the filed PDF · View the filing
Risks flagged
Crude oil price increases and war-related impact on raw material and packaging material costs
p. 10
“So we did foresee the crude impact and war scenario to impact some of the PM and RM prices for our portfolio.”
Varun Alagh, page 10 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.