Honasa Consumer Limited has secured a significant legal victory in Dubai, with the Court of Appeal substantially reducing the award amount in its ongoing litigation dispute. The company disclosed this development through a regulatory filing on February 17, 2026, providing detailed updates on the court proceedings.

Court Reduces Award Amount Significantly

The Court of Appeal in Dubai passed a judgment on February 11, 2026, dramatically reducing the previously awarded amount from approximately AED 25 million to AED 1.7 million. This represents a substantial decrease in the compensation awarded to RSM General Trading LLC for material and moral damages.

RSM Found in Breach of Contract

The Court of Appeal made important observations regarding RSM's performance under the agreement. The court specifically noted that RSM General Trading LLC had breached certain contractual obligations, particularly in failing to meet expected sales performance during the agreement term. This finding appears to have influenced the court's decision to significantly reduce the award amount.

Company's Legal Strategy and Protection

Honasa Consumer has outlined its next steps in the legal proceedings. The company plans to file an appeal against the judgment before the Cassation Court, which is the highest court in Dubai, UAE. This appeal must be filed within 30 days in accordance with UAE procedural laws.

Additionally, the company has secured protection through Indian courts. Honasa Consumer had filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996, before the Delhi High Court. The Delhi High Court allowed this petition and granted an anti-enforcement injunction restraining RSM from enforcing any judgment or decree passed by the Dubai Courts.

Limited Financial Impact

The company has indicated that there is no financial impact from these proceedings. Due to the pending arbitration proceedings in India and the anti-enforcement injunction, any judgments or orders passed by the Dubai Courts will not be executable in India until the arbitration proceedings are concluded, or in the UAE until the Cassation Court decides on the company's appeal.

Background and Continuity

This disclosure continues from the company's earlier communication dated April 03, 2025, regarding the ongoing litigation. The current judgment follows a previous Cassation Court ruling that overturned an earlier Appeal Court judgment dated October 15, 2024, and referred the matter back to the Court of Appeal for rehearing by a new bench, which has now resulted in this favorable outcome for Honasa Consumer.

Honasa Consumer Limited delivered robust financial performance in the third quarter of FY26, demonstrating strong operational efficiency and growth momentum across its beauty and personal care portfolio. The company announced its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, following board approval on February 12, 2026.

Financial Performance Highlights

The company's consolidated financial results showcased impressive growth across key performance indicators. Revenue from operations reached significant milestones, while profitability metrics demonstrated the effectiveness of the company's strategic initiatives and operational improvements.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company maintained its growth trajectory with consolidated revenue from operations reaching ₹17,348.58 million compared to ₹15,333.89 million in the corresponding period of the previous year, marking a 13.13% increase. Net profit after tax for the nine-month period stood at ₹1,307.52 million, significantly higher than ₹477.08 million recorded in the same period last year.

Regulatory Compliance and Publication

In compliance with Regulation 33 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, the Board of Directors approved the financial results at their meeting held on February 12, 2026. The company published its financial results in newspapers on February 13, 2026, including Financial Express (English - All India editions) and Jansatta (Hindi - Delhi edition), fulfilling regulatory requirements under Regulation 47 of the SEBI Listing Regulations.

Strategic Investments and Corporate Actions

During Q3FY26, Honasa Consumer made strategic investments to strengthen its market position and expand its business portfolio. The company invested ₹99.98 million for a 25% stake in Couch Commerce Private Limited, which has been accounted for as a joint venture under the equity method as per Ind AS 28.

Subsequent to the quarter end, the company announced the acquisition of a 95% stake in BTM Ventures Private Limited for a purchase consideration of ₹1,979.62 million, demonstrating its commitment to inorganic growth opportunities.

Exceptional Items and Regulatory Impact

The company recorded exceptional items of ₹47.97 million during the quarter, attributed to the implementation of new Labour Codes notified by the Government of India on November 21, 2025. These codes consolidate various existing labour laws and introduce changes in wage definitions, impacting employee benefit obligations such as gratuity and compensated absences.

Earnings Per Share Performance

Consolidated earnings per share for Q3FY26 stood at ₹1.54 (basic) and ₹1.54 (diluted), compared to ₹0.80 (basic) and ₹0.79 (diluted) in Q3FY25. For the nine-month period, earnings per share reached ₹4.02 (basic) and ₹4.00 (diluted) compared to ₹1.47 (basic) and ₹1.46 (diluted) in the corresponding period last year.

The company's strong financial performance reflects its successful execution of strategic initiatives, effective cost management, and growing market presence in the beauty and personal care segment. With a paid-up share capital of ₹3,253.70 million and continued focus on operational excellence, Honasa Consumer is well-positioned for sustained growth in the coming quarters.