Honasa Consumer eyes hair colour entry as Q2 net profit jumps 87% to ₹73 crore

Bengaluru: Honasa Consumer Limited, the parent company of Mamaearth, Aqualogica and The Derma Co, will continue to double down on its younger brands, which grew over 45% in the September quarter, as it looks to expand its presence in newer categories including hair colour, fragrances, oral care and men’s skincare, the company said on Friday.

The firm is considering entering the hair colour category through one of its existing brands, Varun Alagh, co-founder and chief executive officer (CEO) of Honasa, told analysts during the company’s earnings call.

Also Read | Honasa’s second act: Going beyond Mamaearth

The company said it sees hair colour as an emerging opportunity as consumers increasingly look beyond grey coverage towards styling and newer formulations. The category is estimated to be worth ₹7,000-7,500 crore, excluding the unorganised market, with newer formats and propositions growing at a mid-teens compound annual growth rate, Honasa’s Q2 presentation showed.

Profit after tax in the September quarter surged 87% year-on-year to ₹73.2 crore, while revenue from operations grew 35.9% to ₹731 crore from ₹538 crore a year earlier, marking the company’s fastest revenue growth since its listing in November 2023.

According to Alagh, the improvement in profitability was supported by a favourable channel mix, lower advertising and promotion expenses as a proportion of revenue, and operating leverage. While advertising expenditure increased in absolute terms, remained largely unchanged at 33.4% of revenue, compared with 33.5% a year earlier.

Honasa’s focus categories, including face cleansers, shampoos, face serums, suncare and moisturisers, grew over 40% during the quarter and accounted for more than 80% of its business. “The categories have a combined addressable market of around ₹50,000 crore, while its current share stands at approximately 5%, leaving room for further expansion,” Alagh said.

Growth was broad-based across distribution channels. E-commerce grew over 20%, while general trade recorded more than 40% growth in secondary sales. Modern trade also reported over 40% growth in offtake, supported by similar growth in same-store sales.

The company has expanded its general trade presence to around 320,000 retail outlets, with outlet reach increasing 26% year-on-year. Average secondary sales per retailer grew over 30% during the quarter. In modern trade, Honasa reported market share gains of 416 basis points in face cleansers and 136 basis points in shampoos.

“At the brand level, each business is writing its own growth story. Mamaearth has sustained its high-teens growth, The Derma Co continues to grow profitably. Our younger brands grew over 45% YoY, reflecting the potential of our emerging portfolio,” Alagh said.

Among the younger brands, Aqualogica is building its presence in mists and moisturisers, while Dr. Sheth’s is focusing on premium serums. Staze, Honasa’s cosmetics brand targeting teens, is building its portfolio around two hero products. Reginald Men, meanwhile, is positioning face wash as its second hero category.

The company is also relying on product innovation to sustain consumer interest. Honasa said it will continue strengthening its flagship brands while giving its younger businesses room to “experiment with new formats” and consumer propositions as it builds its portfolio across India’s beauty and personal care market.

Honasa’s shares closed 3.5% lower to settle at ₹464.90 on the NSE on Friday.

Sowmya is a senior correspondent covering retail, FMCG, corporate strategy, and consumer technology, with a focus on how companies navigate demand, competition, and shifting consumption patterns across both urban and emerging markets. She reports on business decisions through both breaking news and long-form stories.<br><br>An alumna of the Asian College of Journalism, she has reported on a range of consumer-facing industries, including e-commerce, healthcare, and startups. Her work focuses on understanding how companies grow, compete, and adapt in a changing economic environment, as well as how broader trends translate into everyday consumption and business outcomes.<br><br>She is particularly interested in how business decisions show up in everyday consumer experiences, and often looks at trends through the lens of how they play out on the ground.<br><br>Prior to her current role, Sowmya was part of the editorial team at YourStory, where she covered startups and entrepreneurship. She has also worked on longform stories at The Morning Context and reported on technology at The Hindu in Chennai, gaining experience across different formats and newsrooms.<br><br>Her reporting aims to be accurate and accessible, with an emphasis on context and careful sourcing. She is particularly interested in stories that sit at the intersection of business strategy and consumer behaviour.<br><br>Based in Bengaluru and always curious about evolving consumption trends, she is often exploring new coffee and kombucha spots, both as a personal interest and a way to observe how consumer preferences are taking shape on the ground.

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