CEO Varun Alagh says revenue growth could exceed 15 per cent estimates, supported by Mamaearth’s rebound and portfolio expansion
Indian beauty and personal care company Honasa Consumer expects to outpace broader market growth by fiscal 2027, supported by a recovery in its flagship brand Mamaearth and continued expansion through acquisitions, Reuters reported.
The company is targeting revenue growth in the high-teen percentage range for fiscal 2027, Chief Executive Officer and co-founder Varun Alagh said on Thursday. Analysts project growth of around 15 per cent, according to estimates compiled by the London Stock Exchange Group.
Mamaearth, which brokerage Ambit estimates accounts for more than half of Honasa’s revenue, saw slower growth in 2024 and 2025 amid shifting consumer preferences. Company executives had previously indicated that adjustments to the brand’s product portfolio, pricing and marketing strategy were required to restore momentum.
Founded in 2016, Mamaearth built its presence with a range of “toxin-free” products focused on mothers and babies, including face washes, shampoos and hair oils.
In an investor presentation in November, Honasa said the brand’s growth was “back in the green” in the September quarter, supported by new product launches. Its Rice Facewash recorded Rs 100 crore (USD 11.02 million) in annual recurring revenue. In the December quarter, Mamaearth reported growth in the double-digit percentage range.
For the December quarter, Honasa posted consolidated profit of Rs 50.2 crore, nearly doubling year-on-year, while revenue from operations rose 16 per cent to Rs 602 crore.
Shares of the company gained about 3 per cent on Friday, taking its market capitalisation to over Rs 10,000 crore.
Acquisitions To Support Growth
In addition to organic expansion, Honasa continues to evaluate acquisitions to broaden its portfolio, a strategy it adopted after transitioning from a single-brand business in 2020.
Deal activity in India’s consumer and retail sector reached a four-year high by volume in the January–September period, according to investment bank Equirus. Larger consumer companies such as Marico and Hindustan Unilever have also announced acquisitions in the personal care segment in recent months.
Honasa, which has eight brands in its portfolio, plans to explore opportunities in fragrance and nutrition-focused “inside-out” beauty categories if suitable assets are available, or alternatively develop such brands internally, Alagh said.
Last month, the company completed the acquisition of a men’s personal care brand for nearly ₹200 crore. It currently has no immediate transactions under consideration and does not follow a fixed size threshold for potential acquisitions, according to Alagh.
