Mamaearth , the parent company of brands like Mamaearth, The Derma Co, and Aqualogica, has reported a strong performance in the second quarter of fiscal year 2026. The company achieved a revenue of INR 566.00 crores, marking a 22.5% year-on-year growth, while maintaining robust profitability.

Financial Highlights

Key Performance Indicators

• Strong Unit Volume Growth (UVG) at 16.7%
• Maintained negative working capital position

Brand Performance

Mamaearth

• Returned to positive growth across channels
• Focus on six core categories contributing 75% of revenue
• Launched premium skincare brand 'Dermasoft' in collaboration with dermatologists

The Derma Co

• Achieved INR 750.00 crores net sales Annual Run Rate (ARR)
• Became the #1 sunscreen brand in India for 2024 (as per Euromonitor)
• Expanding into moisturizer and shampoo categories

Young Brands Portfolio

• 20% year-on-year growth
• Continued focus on core category activation and innovation across BBlunt, Aqualogica, and Dr. Sheth's

Strategic Initiatives

1. Launch of Lumineve: A premium night care-focused skincare brand, exclusively launched with Nykaa
2. Investment in Fang: Strategic investment in the oral care brand to tap into the growing oral beauty market
3. Distribution Expansion:
   • 35% year-on-year increase in direct outlet billings
   • Presence in over 250,000 retail outlets (based on Nielsen data)
   • 80% of business now coming from direct distributor contribution

Innovation and R&D

• Developed deep penetration formula for Derma Co's active serums
• Created the first in-vivo tested sunscreen with anti-pollution factor for Aqualogica

Outlook

Varun Alagh, Co-Founder, Chairman, and CEO of Honasa Consumer Limited, commented on the results: "We're pleased with our performance this quarter, especially the turnaround of Mamaearth and the strong growth in our young brands portfolio. Our focus on core categories and innovation continues to drive our growth. Looking ahead, we aim to maintain this momentum and further strengthen our position in the beauty and personal care market."

The company expects to maintain its EBITDA margin in the coming quarters and is targeting high single-digit growth for Mamaearth in the near term, with an aim to reach double-digit growth by Q4.

Honasa Consumer's strategic investments in new brands like Lumineve and Fang demonstrate its commitment to capturing emerging opportunities in the premium skincare and oral care segments, positioning the company for sustained growth in the evolving Indian beauty market.

Mamaearth , the parent company of brands like Mamaearth, has reported a strong performance for the second quarter, with revenue growth exceeding 22% year-over-year. The company also announced a strategic investment in the oral care segment.

Financial Highlights

Honasa Consumer delivered a robust financial performance in Q2:

• Revenue from operations grew by 22.5% year-over-year to ₹566.00 crore on a like-for-like basis
• EBITDA remained stable at ₹48.00 crore, with an EBITDA margin of 8.4%
• Profit After Tax (PAT) stood at ₹39.00 crore
• Underlying Volume Growth (UVG) remained strong at 16.7%

Brand Performance

The company's flagship brand, Mamaearth, showed signs of recovery:

• Mamaearth's growth returned to positive territory
• Face cleansers category saw a 123 basis points market share gain
• Rice Face Wash entered the ₹100.00 crore Annual Recurring Revenue (ARR) club

Other brands in Honasa's portfolio also performed well:

• The Derma Co. achieved a milestone of ₹750.00 crore ARR
• Younger brands, including The Derma Co., Aqualogica, Dr. Sheth's, BBlunt, and Staze, grew by over 20% year-on-year

Distribution Expansion

Honasa Consumer continued to strengthen its offline presence:

• General Trade distribution saw a 35%+ year-on-year increase in direct outlets billed during H1
• The company is transitioning to a direct distribution model across top 50 cities

Strategic Acquisition

In a move to expand its addressable market, Honasa Consumer announced the acquisition of a 25% stake in Couch Commerce Private Limited, which owns the oral care brand 'Fang Oral'. Key details of the acquisition include:

• Investment: ₹10.00 crore through primary investment
• Target company focus: Prestige oral care, specializing in teeth whitening and everyday oral wellness products
• Rationale: Early-stage investment in a sizeable and fast-growing category

Management Commentary

Varun Alagh, Chairman, CEO & Co-founder of Honasa Consumer Ltd., commented on the results: "Q2 marked another quarter of steady growth for Honasa, with revenue up 22.5% YoY and EBITDA holding stable at INR 48 Cr, reflecting the strength and consistency of our growth playbook. Our focus categories continued to contribute over 75% of total revenues, reaffirming the success of our category-first strategy."

Alagh also highlighted the company's expansion into new segments, including the launch of Luminéve, a prestige skincare brand, and the investment in Fang Oral.

Outlook

Honasa Consumer remains focused on scaling as a House of Purposeful Brands, built on innovation and intent. The company aims to shape the future of beauty and personal care in India through strategic investments and brand expansions.

As the company continues to diversify its portfolio and strengthen its market position, investors will be watching closely to see how these initiatives may translate into sustained growth and profitability in the coming quarters.