Honasa Consumer (HONASA) Q3 25/26 earnings summary

Executive summary

• Achieved highest-ever quarterly revenue in Q3FY26, with 21.7% year-over-year growth, led by strong volume, highest-ever EBITDA and PAT, and robust performance across all key channels and focus categories.

• Core and young brands returned to double-digit and 25%+ growth, respectively, with focus categories outpacing overall company growth.

• Acquisition of Reginald Men strengthened the men's skincare portfolio and expanded regional presence.

• Offline channel execution improved, with direct distribution contributing 80% of revenue and optimized inventory holding days.

• Continued investment in product innovation, community initiatives, and expansion, including multiple blind test wins against leading brands.

Financial highlights

• Q3FY26 consolidated revenue from operations was Rs 6,015.41 million (INR 602 crore), up from Rs 5,175.10 million in Q3 FY25; EBITDA margin improved to 10.9% (INR 66 crore).

• Consolidated profit after tax for Q3 FY26 was Rs 502.00 million, nearly doubled year-over-year, marking the highest-ever profit.

• Gross margin maintained in the 68.5%-77%+ range year-over-year.

• Working capital cycle remained negative, supporting cash flow and efficient capital management.

• Revenue recognition change due to Flipkart Group impacted reported revenue by INR 28 crore, but did not affect bottom line.

Outlook and guidance

• Confident in sustaining strong growth and margin improvement, targeting 100 basis points margin expansion annually.

• Focus on scaling core and young brands, deepening distribution, and maintaining profitability.

• Continued premiumization and innovation in product offerings, especially in men's skincare and sun care.

• Expect focus categories to reach 85%-87% of business in three years, with hero SKUs increasing in contribution.

• Monitoring impact of new Labour Codes on employee benefit liabilities.