Honasa Consumer Limited reported a robust operating performance for the quarter ended September 30, 2026 (Q2FY27), with net sales value (NSV) growth expected in the early thirties on a year-on-year basis.

The company’s largest brand, Mamaearth, sustained its momentum by delivering high-teens YoY NSV growth, supported by rising brand affinity and an expanding offline footprint. Meanwhile, the younger brands portfolio, including The Derma Co., Aqualogica, and BBlunt, accelerated significantly, posting mid-forties YoY NSV growth.

Channel Performance and Distribution

Offline channels continued to lead the growth trajectory for Honasa Consumer. Both General Trade and Modern Trade segments are expected to post strong growth during the quarter. This performance is underpinned by deeper direct distribution networks in General Trade and sharper execution at the point of sale. Online channels also maintained continued growth momentum throughout the period.

Profitability Trends

The company remains focused on improving its operating margins. For Q2FY27, Honasa Consumer expects to deliver an early double-digit operating margin profile, marking strong year-on-year gains in profitability. This aligns with the management's stated goal of consistent EBITDA margin improvement.

What the Numbers Show

The divergence between the mature core brand and the emerging portfolio highlights a successful multi-brand strategy. While Mamaearth provides steady volume through high-teens growth, the younger brands are scaling at nearly triple that rate (mid-forties). This suggests that new product lines are rapidly capturing market share, contributing disproportionately to the overall early-thirties NSV growth figure despite being a smaller base compared to the flagship brand.

Methodology Note

All growth figures are presented on a like-for-like basis. The base period revenue for Q2FY26 has been adjusted for changes in settlement practices by the Flipkart group, which impacts revenue recognition for marketplace sellers. Consequently, reported and like-for-like growth rates are aligned. NSV is defined as net sales value after returns, taxes, discounts, and cancellations.

Honasa Consumer Limited saw a significant reduction in institutional holding after Peak XV Partners Investments VI sold 1,07,55,495 equity shares in an open-market transaction on September 30, 2026.

The disclosure was filed with BSE and NSE on October 2, 2026, pursuant to Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The transaction involved shares with a face value of ₹10 each. This sale follows a similar move by Sequoia Capital Global Growth Fund III, which sold 25,02,289 shares on the same date. Additionally, Redwood Trust, acting through Peak XV Partners Advisors India LLP, disclosed the sale of 75,549 shares on October 5, 2026, for the same September 30 transaction date.

Stake Reduction Details

Prior to the sale, Peak XV Partners Investments VI held 4,82,63,012 shares, representing 14.80% of the total voting capital. Following the disposal of 1,07,55,495 shares, the remaining holding stands at 3,75,07,517 shares, which accounts for 11.50% of the total voting capital.

The seller does not belong to the promoter or promoter group. Persons acting in concert (PAC) with the seller include Sequoia Capital Global Growth Fund III and Redwood Trust. The filing notes that these PAC entities have also sold shares and will file separate disclosures. Specifically, Redwood Trust reduced its holding from 3,39,012 shares (0.10%) to 2,63,463 shares (0.08%) by selling 75,549 shares (0.02%).

Transaction Metrics

The total equity share capital of the company remains unchanged at 32,60,24,216 equity shares on a non-dilutive basis and 32,90,26,231 equity shares on a fully dilutive basis, as per the shareholding pattern as of June 30, 2026.

What the Numbers Show

The sale by Peak XV Partners represents a 3.30% reduction in total voting capital for this specific fund entity. When viewed alongside the earlier disclosure that Sequoia Capital Global Growth Fund III sold 25,02,289 shares (reducing its stake from 3.44% to 2.68%) and Redwood Trust's sale of 75,549 shares, the data suggests a coordinated reduction in exposure by the broader Sequoia/PKX investment cluster rather than an isolated move by a single fund vehicle. The combined selling activity indicates a strategic exit or rebalancing by these major institutional investors.