Honasa Consumer ad spend rises 17 per cent to Rs 241 crore in Q1

MUMBAI: The beauty business is putting its money where the marketing is. Honasa Consumer, the parent company of Mamaearth, increased its advertising spend by 16.7 per cent year-on-year to Rs 241 crore in Q1 FY27, even as stronger revenue growth helped the company deliver its highest-ever quarterly profit.

Honasa’s consolidated revenue from operations rose to Rs 755.95 crore in the quarter ended June 2026, from Rs 595.25 crore a year earlier, while total income increased to Rs 778.46 crore from Rs 619.14 crore. Despite the higher advertising outlay, ad spend as a proportion of revenue fell to 31.8 per cent from 34.6 per cent in Q1 FY26.

The improvement was sharper at the bottom line. Profit before exceptional items and tax more than doubled to Rs 119.24 crore from Rs 55.59 crore, while profit after tax reached Rs 90 crore. EBITDA also more than doubled to Rs 110 crore, translating into an EBITDA margin of 14.1 per cent. Honasa said the June quarter marked its highest-ever quarterly profit.

The company is also shifting where it finds its growth. Its e-commerce channel expanded by more than 20 per cent year-on-year, while the company identified quick commerce and platforms with stronger reach in Tier-2 and smaller cities as key areas for gaining market share.

Across its focus categories, Honasa recorded growth of more than 35 per cent, supported by e-commerce, general trade and modern trade. The company said both general trade and modern trade grew by more than 40 per cent during the quarter, highlighting the continued push beyond its digital-first origins.

Mamaearth returned to high-teens growth during the quarter, led by its focus categories. The brand also recorded its highest-ever brand searches, with its indexed search score rising to 136 in Q1 FY27 from 100 a year earlier.

The brand’s marketing push included purpose-led and reactive social media activations and content aimed at improving consumer relatability. At the same time, Mamaearth gained ground in key categories, with its value market share in face cleansers reaching 6.9 per cent, up 138 basis points year-on-year. Its share among handlers increased to 11.2 per cent.

Honasa’s FMCG retail reach stood at around 3 lakh outlets as of June 2026. Modern trade distribution expanded to more than 90 per cent of the relevant store universe, while face cleansers and shampoos gained share across key modern trade accounts.

The stronger contribution from offline channels also helped support the improvement in EBITDA margins, according to the company, as the business continues to balance its online roots with a wider physical retail footprint.

The Derma Co was another major growth driver. The brand crossed a Rs 1,000 crore annualised net sales run rate during the quarter, while brand searches increased 34 per cent year-on-year. Its distribution footprint expanded to more than 50,000 outlets, with its face cleanser business crossing a Rs 200 crore annualised run rate.

Honasa’s younger brands also grew by more than 40 per cent during the quarter. The company pointed to continued traction across Gen Z-focused products, premium serums, men’s skincare, hair colour and sunscreen.

With revenue growing faster than advertising expenditure, Honasa’s Q1 numbers suggest the beauty major is trying to make its marketing rupees work harder — spending more in absolute terms while relying increasingly on scale, offline distribution and category expansion to improve profitability.